Want a Lower Car Payment? It is Easier than You Might Think!

If you are like most people, you want a lower car payment. The loan you choose is a big decision because it determines the amount of your monthly payments, your interest rate, and the term–which is how long you have to pay off the loan.


But, is it permanent?


It doesn’t have to be!


Did you know that, just like a home loan, an auto loan can be refinanced to improve terms such as monthly payment amount, interest rate, and/or length of loan?


Reasons to Consider Refinancing Your Auto Loan:


1. You want or need to lower your monthly payments


2. Your ability to make your payment has changed.

For example:

  • You’ve had a salary or job loss or change.
  • Your rent or other expenses have increased
  • You made an additional large purchase like a home or an additional vehicle that makes it difficult to pay your monthly payment.
  • Your financial obligations have changed, ex: having a baby, a change in your marital status, or an unexpected expense


DON’T DEFAULT! If you’re finding it really hard to make your monthly payments and you’re afraid you might default, this is the time to act. No matter your circumstances or current credit, defaulting is the worst-case scenario. You credit could be irrevocably damaged and take years to recover.


3. Your credit score has improved.

Check your score! If it has improved, you are much more likely to get a new loan with a lower payment and better terms, including a lower interest rate!


4. You want to switch from leasing to owning your car

If you want to go from leasing to owning the car, refinancing is an easy way to make the transition and could lower your payment at the same time.


5. You want to pull some cash out of your equity

Unexpected expenses, whether they are personal, home, family, auto, major and minor, etc., come whether you can afford them or not. If you want to take cash out against your vehicle’s equity to meet unexpected expenses, refinancing your loan is something to seriously consider.


6. The market has stalled because the economy is bad

You can use this to your benefit. You see, when the economy is bad, fewer people take out loans. When this happens, lenders are anxious to get new customers and willing to offer better deals on new loans. This includes people with bad credit.


What if you have bad credit?


If you are struggling to make your payments and end up missing payments or paying them late, it could make your credit score even worse.


And, defaulting on your loan could be a disaster! If you already have a low credit score, it can take many years to recover.


If you have bad credit, it is a really smart idea and a great time to look at refinancing! It is really simple:

  • If you can lower your payment, it will be easier for you to make the payments.
  • If you have more time to pay the loan off, it is more likely you will not have to miss payments, make late payments, or default on your loan.
  • And, if you get a lower payment, more time to pay and, make your new payment regularly, your credit score could start to go UP!
  • It is also a win for the lender because having a more manageable monthly payment could make you less likely to default on your loan. This is the last thing they want to happen because they don’t want to lose money.


Your ability to qualify for a loan and the interest rate will take into account factors such as your previous payment history and your credit score. But, even with bad credit, there’s a good chance of getting approved for a new loan. Find out more information about refinancing with bad credit here.


Your credit score is used by lenders to evaluate the risk involved in lending money to you. Your credit score tells them your payment history for any loans and credit cards, and if you have been reported as delinquent by any businesses like your cable, phone, electricity, etc. Your score is a key factor in the type of deal for which you qualify, so you want to make sure your credit report is accurate. If you see an incorrect late payment or other entry, get in touch with both your bank and the business or lender. The bank can give you the right documents you will need to provide as well as clarifying the error with the credit bureau to get it corrected.


If you check your credit report and find that you have a low credit score, there are still loans available and it is worth it to see what loans you might qualify for that can lower your monthly payment.


Three Ways to Use Refinancing if you want a lower car payment:


1. Refinance Your Current Auto Loan to Get Better Terms

Refinancing is actually very simple! You transfer your current outstanding amount to a new loan with better payment terms which can include better terms, such as:

  • a lower monthly payment
  • more time to pay off your loan
  • a lower interest rate.


2. Merge Your Current Loan with Other Debt

If you have multiple payments each month and have trouble managing them, then this could be a great option for you. This method allows you to merge multiple loans and debts into a single, consolidated loan and, usually, with a lower monthly payment.


If you are able to get a lower interest rate or longer terms, you could have

  • ONE loan and
  • ONE payment that is lower than what you are currently paying.


Consolidating your debt can potentially save you money each month AND simplify your finances by having only a single payment.


3. Refinance with a Payment Towards the Principal

If you are able to make a significant payment towards your principal, your new loan amount will be smaller and the amount of interest you will pay will decrease because the loan will be paid off sooner. When you refinance this way, you can reduce the amount of your monthly payment and, you might even be able to get a lower interest rate for the remainder of the loan! If you can get a lower rate, it just brings your costs down that much more.


4. Take a Little Break from Your Car Payments

When you refinance your loan, it takes awhile for your application to be processed and your new loan to go into effect (up to 60 days in some cases). Since your first payment is not due until then, you very well could end up not having to make a car payment for one or even two months!


What Now?


The best news is that:

You are the customer!

You have choices!

And, YOU are in the drivers’ seat!

If you want a lower car payment but are not sure where to start or not sure what the best choice is for you, Contact RefiJet for assistance from your very own Financial Service Representative who’ll guide you through the entire process and get you the best deal, for FREE. There is absolutely no RefiJet fee charged to the customer for this service.

Important Disclosures and Requirements

Customer Consent to Receive Account Information Electronically

The Electronic Signatures in Global and National Commerce Act requires your consent to receive certain disclosures electronically. Please read this section carefully and retain a copy of this document for your records.


Some communications and disclosures with and by RefiJet.com on its behalf and on behalf of participating banks, finance companies, and credit unions (hereinafter called “Lenders”) are conducted electronically. However, if you wish to obtain a paper copy of any disclosure to your offer and/or loan/finance offer request, you may write to Yield Solutions Group, LLC (dba RefiJet.com) at 7555 E. Hampden Ave., Ste. 500, Denver, CO 80231. We will not charge you a fee for a paper copy of the Disclosures you request. RefiJet does not provide any Lenders’ disclosures.

RefiJet.com reserves the right, in its sole discretion, to stop providing Disclosures electronically. RefiJet.com will provide you with notice of any such termination as required by applicable law. If RefiJet.com chooses to stop providing Disclosures electronically, RefiJet.com will send any future Disclosures to you in paper form.


The applicant and any co‐applicant (collectively, “you”) must consent to receive Disclosures electronically in order to complete the loan/finance offer request process with RefiJet.com on behalf of its participating Lenders (as defined above). Your consent will apply to Disclosures you receive from RefiJet.com, its successors and assignees, and any Lenders. You may withdraw your consent for receiving electronic Disclosures by notifying RefiJet.com at Info@RefiJet.com. Since RefiJet.com is structured to provide some loan/finance offer request related information electronically, not consenting, or withdrawing your consent to receive electronic Disclosures may terminate your loan/finance offer request process. You may withdraw your consent to do business electronically with our participating Lenders at no cost to you. You may do so by contacting the Lender at the mailing address, e‐mail address or telephone number they provide to you separately for such purpose.


In order to use this service, you must consent to receive disclosures including but not limited to the Terms of Service and Privacy Notice electronically and you agree that these electronic disclosures will be sufficient as a “writing” under applicable law.

If you have access to this website, you have suitable hardware/software to access and retain electronic documents.

This consent is valid until revoked by either party.

Please notify us at 1.800.260.5355 if your contact information changes at any point in the refinance process.


This average monthly auto loan payment savings reflects loans where the borrower chose to lower their monthly payment. Not every auto refinance is intended to lower monthly payment. These savings are not guaranteed. Individual savings and rates may differ.

2018‐10‐08 02:30PM MST