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When Can I Refinance A Car Loan In Delhi?

When Can I Refinance A Car Loan In Delhi?

Auto loan refinancing is a popular topic and something we spend a lot of time discussing with clients. As our lives evolve and circumstances change, an auto loan that worked perfectly at one time may not work at another. Our Delhi auto loan team outlines the basics of what it means to refinance a car loan in Delhi, and the advantages it can bring.


Refinancing can be useful for changing the amount or the term, for borrowing more or borrowing less. It’s a flexible tool for adapting to different circumstances and while it won’t work for everyone, it can work for most people.


When can you refinance a car loan in Delhi?


Technically, you could refinance an auto loan anytime you want but it makes most sense once you’re a little way into the loan.


It takes anything up to 90 days for the vehicle title to be transferred and the loan to be reflected on your credit report so it really isn’t worth trying to refinance before then.


We would recommend no earlier than six months into your existing loan but further along is better. The more you have paid off your original loan, the more you could reduce the next one or the more money you could raise, depending on your motives.


If you have bad credit or are rebuilding credit, we recommend waiting at least 18 months before refinancing. This gives it enough time for your payment history to reflect on time payments and your credit score to increase accordingly.


This could be enough to put you back in fair or good credit territory, meaning much lower rates.


How does auto loan refinancing work?


Auto loan refinancing is very straightforward. Essentially, it’s just replacing one car loan with another at a more favourable rate, for a different amount or a different term.


We all have our own reasons for wanting to refinance. It could be to lower monthly repayments, increase them to pay the loan off faster, to extend the term to make smaller payments or shorten the term to pay it off quicker.


Refinancing can achieve all those things.


The refinancing process works a little something like this:


  1. Check your existing loan doesn’t include early settlement fees
  2. Get a settlement figure from your current lender so you know how much you’ll need to repay
  3. Get your down payment together
  4. Calculate how much you need to borrow
  5. Check your credit score and report to make sure you have sufficient credit and everything looks good
  6. Get your paperwork together to support the loan application
  7. Get prequalified so you know you could qualify for the loan
  8. Apply for the loan


Auto loan refinancing is quick and painless, just like the initial loan application. Just make sure that you’re doing it for the right reasons and that your new loan delivers the advantages you’re looking for.


When you’re ready to refinance your loan, contact our team and we will help.


When you’re ready for a car lease or loan, get in touch with the Delhi auto loan experts at Northway Ford for great deals on auto finance.


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Categories: Car Loan

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