When to Refinance a Car and When to Wait

Countless resources are available for those thinking about refinancing a car, but what about motorcycle loans? Does refinancing a motorcycle work the same way as it does with a regular car loan? The short answer is yes, you can refinance your motorcycle loan, and yes, the process is essentially the same.Read on to discover the what, why, and how of refinancing your motorcycle.What is a refinance for a motorcycle?Refinancing means paying off your old motorcycle loan with a new loan, preferably with better terms.Why would you want to refinance your motorcycle?You may want to refinance if…You want to save moneyYou got your loan with a dealership markup and were eligible for a lower rateYour monthly payments are too highYour budget is too tightYour credit score went upInterest rates have gone downYou want to add or remove a co-borrowerYou want to pay off the loan soonerDetermine your whyThere are plenty of things to consider when deciding whether to refinance and which lender is offering the best deal for you. It’s important to ask yourself, why do you want to refinance your motorcycle?You can save money if you refinance to a lower annual percentage rate (APR). You can lower your monthly payment by refinancing for a longer term. If interest rates have dropped, you got a bad deal in the first place, or your credit score has gone up, you may be able to both pay less and save money overall!Figuring out your ‘why’ can help you make a more informed decision. Maybe your monthly payments are feeling too high because inflation has raised your other costs, or your spouse lost their job and you need to prioritize other bills. Or maybe your credit score has improved and you’re now eligible for a more favorable interest rate. For example, if you had a credit score in the 600s before, but it’s now well into the 700s, you could well be eligible for better loan terms.Think about why it is that you want to refinance as you learn more about your options and it’ll help you make sure you choose the right refinance for your unique situation. Whether you are trying to pay off your bike more quickly, or simply lower your monthly payments, you should be able to save money in the short-term, the long run, or both when refinancing your motorcycle loan.A word of warningJust like with refinancing a car, when it comes to refinancing a purchase as expensive as a motorcycle, you want to do your due diligence and make sure you’ve considered and reviewed all possible factors. For example, it may be possible to refinance with less than excellent credit, but it will likely mean paying higher interest rates. In that case, a lower monthly payment now could cost you more in the long run – is that a sacrifice you’re willing to make for more wiggle room in your budget now? Similarly, be sure to check for any fees on your existing loan and go over your options carefully to ensure your refinance meets your goals. Some loans have pre-payment penalties that could cancel out your savings.If all of this sounds confusing, it’s because it can be if you don’t review the information thoroughly. Fortunately, when you refinance with Auto Approve, we’ll work with you directly to review your options, make sure you understand all the terms of your new loan, and handle the paperwork for you – even the DMV!How do you refinance a motorcycle loan?Review your optionsConsider your new paymentReview your credit scoreCheck for feesGather your paperworkLock in your refinanceMany people assume that refinancing anything is a lengthy and complex process. In fact, with proper preparation and help from the professionals at Auto Approve, refinancing doesn’t have to be overwhelming at all! Plus, refinancing your motorcycle loan can save you thousands over time, which makes the process worth it. Here’s what you need to do.Step 1: Review Your Options. Start by comparing current interest rates broadly with the rates when you got your loan. This will help you feel more prepared for the range of options that might be available to you. Then, compare rates from a few different lenders and how they stack up against what you currently pay. Rates will vary by lender, your credit score, and the age and make of your motorcycle. Each lender comes with their own credit score requirements. In general, the higher your credit score, the better the rate you will be able to secure.Using Auto Approve to get a quote will allow you to review several different options at once.Step 2: Consider Your New Payment. Use a refinance calculator or review your quote options to figure out what you could be paying with a refinance and what you’ll pay overall with each option, then make sure those final numbers fit within your ideal budget.Step 3: Review Your Credit Score. When you apply for refinancing, lenders will submit a hard inquiry on your credit. This will temporarily lower your score. It will bounce back within a year, but you’ll want to consider whether you’ve recently had a hard credit check or anticipate having your credit checked for any upcoming major purchases. If you’re about to buy a house, for example, now might not be the best time to refinance.You’ll also want to know in advance (before lenders perform a hard check) where your credit stands, how it stacks up against any credit score requirements from different lenders, and how it has changed since you got your initial loan.  Step 4: Look Out for Fees. Fees are where a lot of loan companies make their money and are written right into the leasing or lending contract. The fees can come from a variety of things related to the application process. Be sure to ask any potential lenders if they charge any fees and thoroughly check the paperwork on your existing loan to find any penalties you might need to pay should you choose to refinance your motorcycle.Step 5: Prepare Your Documents. By organizing the documentation you are going to need ahead of time, you’ll be able to expedite the refinance process. Things you might want to gather include: your vehicle identification numberYour motorcycle’s make and modelthe value of your bikeyour motorcycle insurance informationdetails about your existing loanWhen all of this is gathered, you can complete any application form quickly and submit your paperwork to start saving money.Step 6: Lock in Your Refinance.Once you’ve found a lender and an offer that makes sense for you and double checked that everything is in order, it’s time to refinance! You’ll need your new lender to work with your old lender to get the old loan paid off – or, if you choose to refinance with Auto Approve, your dedicated agent will handle the paperwork for you.Refinancing your motorcycle loan can be a simple way to put more money back in your wallet. Here at Auto Approve, we make refinancing quick and easy. Get your free, no credit check, no commitment quote today.GET A QUOTE IN 60 SECONDS

How do you know when to refinance your SUV? Here’s the short answer.You should consider refinancing your SUV under any of the following circumstances: You are eligible for a better deal because you got a bad deal from your dealershipInterest rates have dropped since you got the loanYour income or credit score has gone upYour budget has tightened and you need to pay less monthlyYou want to add or remove a co-borrowerYou should not refinance if:Your credit score has droppedYou’re about to have your credit checked for something else or recently had a hard credit checkYour loan is less than 6 months or more than 2 years oldYour current loan on your SUV is underwaterYour vehicle is very old or has very high mileageYou’ll owe more in penalties on your current loan than you’ll save with a new loanWork with a refinancing expertAt Auto Approve, we can help you find the best deal for your unique situation, and getting a free quote requires no commitment or hard credit check, so if you’re considering it, get your free quote and our advisors can help you understand your options.Get a quoteHere’s everything you need to know about when to refinance an SUV (and when not to).What is refinancing?Refinancing is the process of taking out a new loan to pay off the balance of your existing loan, ideally with better terms on the new loan than the original loan.What are the top reasons to refinance your SUV?There are a number of good reasons you might want to refinance a vehicle. 1. Lower your monthly payments.Maybe your financial situation has changed and you need a little more money every month. If you want a little more breathing room for your wallet, vehicle refinancing can help lower your monthly payments, either by lowering your interest rate, extending your payment timeline, or both. 2. Pay less overall.Maybe you have a bit of extra money and you want to pay off your SUV at a faster rate and be done with the loan entirely. Maybe you’re eligible for a better rate now. Refinancing can lower your interest rate and/or decrease your payment timeline, saving you money.3. Make a change to the loan.More mundane but equally valid, sometimes people choose to refinance to add or remove a co-borrower, meet a new timeline, or make other smaller changes to the loan terms.How to know if the time is right to refinance your SUVHere are some factors to consider when deciding if now is the best time to refinance a car or SUV:The current terms of your loanYour incomeYour credit scoreYour cash flowAny upcoming large purchases or credit checksInterest rates at largeWhere you got your loanWhen you got your loanWho else is on your loan (or should be)Your vehicle’s age and mileageThe loan-to-value on your current SUV loanExamples of when to refinance your SUV and when not toThere are many things to consider when it comes to refinancing a car. If any of the following apply to you, it might be a good time to refinance your vehicle.1. You didn’t get the best deal on your SUV in the first place due to your income or credit scoreMaybe your credit score had just taken a hit from some inquiries or missed payments. Maybe you had a tough couple months at work and your income wasn’t as high as the bank would have liked. Regardless, the bank didn’t view you as a very desirable candidate, and you were stuck with a rather high interest rate.Since then, your credit has improved. You have checked your credit reports on the three credit bureaus (which you can do for free once a year), and everything looks better. Your job is steadier, and your paychecks are a bit bigger. You know that if you went for that loan now, you would get a much better rate. While there is no magic credit score to refinance, you know that you are a much more desirable candidate this time around.If you originally bought your SUV when times were a bit tougher and your situation has since improved, this could be a great time to consider refinancing.2. You didn’t get the best deal in the first place due to a smooth talking salesmanYou went in to browse and get an idea of what kind of SUV you might be interested in, and before you knew it you were signing on the dotted line. Somehow you agreed to a 7% interest rate when other lenders were offering 5%, and you didn’t even see it coming. Car dealerships notoriously offer higher rates to make more money, and it is common to get caught up in the excitement and agree on the spot.In this case, simply refinancing with an accredited lender can reduce your interest rate, even if your credit score and income have remained the same.3. Interest rates in general have dropped since you first took out the loan on your vehicleBig banks tend to adjust interest rates based on how the economy is performing. It’s worth considering the rates available now versus the average rates when you first got your loan.While your personal finances are most important for determining your loan rate, standard rates fluctuate regularly, and you may be able to get a better deal simply by paying attention to those fluctuations. Timing can make a huge difference when it comes to interest rates and refinancing your vehicle.4. You want to add or remove a borrower to your policyAdding or removing a co-borrower to your loan is a very common reason to refinance, whether the reason is personal or financial.Adding a BorrowerMaybe times are tough right now. Your hours at work got cut and you are struggling to make ends meet. The monthly payments are simply too much to keep up on. Your friend or partner, however, could use a set of wheels, and they have some extra money to help bridge the gap in your payments. Best of all? They have fantastic credit. That's a great reason to consider refinancing your SUV! You can also refinance with a partner who has better credit simply to reduce household bills or help a partner who has worse credit than you by co-signing on their refinanced loan.Whatever your reason, adding your friend or partner to the loan can secure you a better interest rate and reduce your overall payments, since you will be splitting the monthly cost. The lender will consider your joint income and both of your credit scores when determining an interest rate.Removing a BorrowerWhat about removing a co-borrower? Maybe you had a co-borrower on the original loan because your credit wasn’t the best, but you don't really need the help anymore. Or maybe you were in a relationship that has now gone south and you need to separate from that person financially. Either way, refinancing your vehicle is a great way to sever that financial tie.5. You need the extra breathing room each monthYour finances have changed a bit for whatever reason, and you are having trouble making your monthly payments on everything. You want to take a big trip or are saving up for a big purchase. You simply want more spending money to pamper your family. No matter why you want a little extra wiggle room, refinancing could be the solution.Refinancing can allow you to lengthen your repayment period, which will lower your car loan payments every month. Keep in mind that this often means you will be paying back more money overall for the duration of the loan, unless you are able to drastically reduce your interest rate as well.6. It’s been at least six months since you originally took out your SUV loanYou need to wait at least 60 to 90 days to be able to apply for refinancing, as it typically takes this long for the title transfer to complete. But waiting six months will allow your credit score to bounce back from any dips that your credit score may have taken when initially securing your loan. First time borrower? Experts suggest waiting a year to refinance to optimize your refinancing options.7. You have at least two years remaining on your current SUV loanSince most of the interest for a loan is paid in the beginning, the more that is paid off on the loan, the less beneficial refinancing can be. Having at least two years remaining on your loan will help ensure that you will benefit from refinancing your vehicle.When the time is not right to refinance an SUVThere are several reasons that it might not be the best time to refinance your SUV. If any of the following apply to you, consider waiting on refinancing your vehicle.1. Your credit score has decreasedYour credit score is the single most important factor in determining your interest rate. If your score has not increased since your original loan, you will likely not qualify for refinancing. Credit scores can decrease for a number of reasons, such as:Late or missed payments.High credit balances.One of your credit limits decreased.A lot of new credit inquiries.Your credit utilization score has dropped. This ratio is determined by adding up all of your credit card balances and dividing it by your available credit. This number should ideally be 30%Any of these factors can cause your credit score to drop. Request a copy of your credit report and, if you see any inconsistencies, you can report it to the credit bureaus. 2. You need a high credit score for another reasonWhen you apply for refinancing, your credit score will take a hit. There is a fourteen day window allowed by the big three credit bureaus that allows for all credit inquiries in that span to count as one credit hit. But if you need your credit to be in good standing for another reason, say a mortgage application, it is best to hold off. These credit inquiries will affect your credit score for a year, so plan accordingly.3. The fees outweigh the savingsSome lenders build in prepayment penalties to their contracts. To offset the cost of losing your remaining interest, they build in penalty payments. Read your contract closely to see if you will incur any penalties, and call your lender directly if you are still unsure. Sit down and do the math to determine how much you will save by refinancing a vehicle, and see if that outweighs any penalty fees you might incur.4. You have an old vehicle or a vehicle with high mileageIf your SUV has very high mileage or is an older model, it will be difficult to refinance. It might make more sense to consider trading in or buying a new SUV if this is the case. 5. You owe more on your SUV than it is worthWhen you owe more on your SUV than it is worth, it is referred to as being “upside down” or “underwater”. If this is the case, lenders may not see the value in refinancing your SUV loan.Now you can decide the best time to refinance your SUVIf the time seems right, Auto Approve is standing by to help you apply, compare offers, and determine the best refinancing option for you. Auto Approve never marks up the rate you pay, so you know you're getting the best rate available.With an A+ rating from the Better Business Bureau and a 96% would-recommend rating from Lending Tree, you can be confident that we will work hard to save you money.GET A QUOTE IN 60 SECONDS

Here’s the short answer…You should consider refinancing your truck when interest rates are favorable, when your current loan isn’t too new or too old, or when your personal finance situation has changed.Read on for the long answer.When should you refinance a truck? Read on for the long answer.Here’s everything you need to know to decide if now is the right time to refinance your truck.In this guide, we’ll cover:What it means to refinance a loanWhy refinance your truck loanThe major factors you need to consider when deciding when to refinance a truckWhat does it mean to refinance a loan? Refinancing means paying off your existing loan with a new loan – ideally one with better terms. Why refinance my truck? To pay less money overall by getting a lower interest rate or shortening the term of the loanTo pay less monthly by extending their loan or lowering their rateTo add or drop a co-borrower1. Lower InterestThanks to dealership markups, most people are overpaying every month for their truck loan. Refinancing is a straightforward way to fix that.2. Paying LessWith the cost of living going up and up, whether you're trying to make ends meet, looking to save for a big purchase, or simply looking for more disposable income, many of us are looking for ways to save a few dollars.Refinancing your truck may be a quick and easy way to reduce your monthly vehicle payments and give your wallet some much needed breathing room. 3. Changing The Life Of The LoanIf you have more cash in hand, shortening the term of your loan can help you pay less overall, even at the same interest rate. Or, you might want to pay off your loan before a specific date (say, for example, you were retiring and didn’t want to worry about having a vehicle loan after retirement).Lengthening the life of the loan may mean paying more overall (unless you also get a lower interest rate), but can mean paying less monthly, freeing up more money each month in the here and now.What are the factors that determine the best time for refinancing?Your personal finances, including your credit score, income, and future cash flowYour current loan’s terms, including prepayment penalties and time remainingCurrent interest ratesLet’s take a closer look at each of these factors.1. Your Personal FinancesThis includes: your credit scoreyour incomeyour cash flow Trying to determine when is a good time to refinance a car loan or truck loan is going to vary from individual to individual. Your personal finances will be a huge factor as to when you should consider refinancing. a. Your Credit ScoreYou might be wondering, “what credit score do I need to refinance my car or truck?” The truth is there is no one magic number that will make refinancing make sense. Instead, look at how your credit score has changed since you last financed your truck. If your credit score has increased, even only slightly, you may qualify for a lower interest rate. This leads to more savings every month and more money in your pocket. If your credit score has gone down, this might not be the best time to consider a vehicle refinance.A good credit score is one of the most important factors in securing a good interest rate, so keep a close eye on your score to determine the best time to refinance.b. Your IncomeIf your income has decreased recently, refinancing can help reduce your monthly bills and help bridge the gap between earnings and expenses.If your income has increased, you may want to pay more monthly on a shorter loan to pay less interest.c. Your Cash FlowAs well as changes to your income, you might have changes to your expenses.For example:If your family is expanding If someone you love is sickIf you want to remodel your bathroomIf you want to pay off credit card debtIf you’re saving up for a special occasionIf, for any reason, you’re spending or saving more and could use some extra cash, refinancing your truck could be the answer to your cash flow challenges. You could pay less monthly with a refinance.You may also be eligible to refinance and borrow additional money based on your truck’s value. It is important to be careful here, however; a truck is a constantly depreciating asset, so you do not want to risk owing more money on your truck than it is worth. 2. Your Current Loan’s TermsIn addition to your personal finances, it is important to look at the current terms of your auto loan to determine whether or not it is the right time to refinance your vehicle. Consider:The time remaining on your loanAny prepayment penalties or fees built into your current loanThe amount of time you have left in your repayment period will affect whether or not refinancing is worthwhile. In addition, some lenders charge fees should you choose to pay back your loan early. It is important to check these terms and weigh your options.Here’s a more in-depth explanation.a. Time RemainingThis is the time left on your current loan’s pay period. If refinancing to a lower interest rate results in a similar or shorter payment period with a lower rate, you will certainly reduce your payments and save money overall. But if refinancing your truck lengthens your payment period, it may lead to lower monthly payments, but the additional payment period means you may be paying more money overall. This decrease in monthly payments may still make sense though, depending on your financial situation. It is important to look at all of your options and do the math to decide whether or not it is a good time to refinance your truck. On the fence? The experts at Auto Approve can help you compare options from different lenders to make sure you get the best truck refinance for your unique situation.b. Prepayment PenaltiesSome lenders charge a penalty for paying off early, making it more of a burden to refinance. Prepayment penalties help companies to offset the lost profits that come as a result of paying off loans early. To find out if your loan has a prepayment penalty, you can: look through your contract contact the lender directly to find outIf you find out there is a penalty associated with paying off your loan early, be sure to sit down and do the math. If the penalties of refinancing your truck are outweighed by the savings, it still might make sense to refinance.While there can be exit and transfer fees associated with refinancing, rest assured that, at Auto Approve, we never markup the price that you pay.3. Current Interest RatesInterest rates tend to fluctuate, and have been up and down over the past several years. The best thing to do is to compare the rate of your current loan with the available rates at the time you’re considering refinancing. If all other factors are equal, keep an eye on interest rates to try to time your refinance just right. But if your personal situation has changed, unless you got a really low rate on your initial financing, it may be worth checking your options whenever you feel a refinance is right for you.Getting a free quote from Auto Approve requires no hard credit check and no commitment, so there’s no time like the present to see how much you could save.Now you know how to find the best time to refinance your truckShould you refinance your car or truck? Is refinancing a vehicle worth it? As you can see, there are many factors that must be taken into account. Ultimately, you want to get: the shortest loan term you can afford ANDthe lowest interest rate available to youto guarantee you are getting the best truck loan possible. At Auto Approve, we advocate to get you the best rates and best deals from leading lenders. If you're ready to refinance your truck, we can help.GET A QUOTE IN 60 SECONDS