Having a personal vehicle has become a matter of necessity for people these days. And loans are the best method of financing the deal. Well, if you have availed a used car by a car loan and are tired of the higher rate of interest for EMIs, it is time to go for car refinancing. Car refinancing lets you exchange higher rate of car loan interest with that of a lower rate. This is what makes it sound to opt for a new car loan. Used car loans come with higher rates of interest as well as short repayment term due to its lower resale value compared to that of a new one. Hence people even availing used Hyundai i20 Indian fuel economy too may find the loan repayment scheme stressful. To lower your burden, go ahead with refinancing the car.
Things to Keep Into Concern When Applying For Refinancing Your Used Car
Now that you are thinking of refinancing your used car, it is essential to also keep in concern that your vehicle is not very old. If the car is old enough, then it won’t be of much use for the lender, and he surely won’t be willing to incur a loss of funding your desire. Even though the lender will conduct a special test, but be on the safe side, you need to make sure that the car is working properly before you make application for refinancing the same. Some basic requirements, you need to keep into concern in this context are:
- Mileage of the car
- Age of the car
- The value of your car
If all these meet the requirement set forth by the lender for refinancing, you will be able to avail the same.
From the Lender’s Viewpoint
Usually, lenders require the age of the car to be not more than eight years while the mileage to be somewhere around 70,000 miles. You will find car refinancing helpful if and only if the value of your used car is lower than the value owed from initially. The very first step for ensuring lower rates of interest is by repaying the loan as per pre-decided terms. This helps in enhancing the credit score and will add on points to your chances of availing the refinancing scheme. Another thing you need to keep into concern is getting your used car refinanced as early as possible. Remember, there is no use getting it refinanced when you have only one year on hand for the termination of the initial loan terms. In short, car refinancing is something that you will find beneficial.