What to Know About Refinancing with GM

Think you’re paying too much in interest for your car loan? You might be right. While interest rates have dipped in the last year, if you started financing before they went down, you could be spending more money than you need to.

This is why you may want to consider refinancing with GM, as this can cut your monthly costs significantly.

What Does Refinancing Mean?

If you have never refinanced anything before, you probably have questions about it. This basically just means that you will be taking out a new loan with a lower interest rate.

It is important to keep in mind that there is a fee involved when you refinance. There are also a couple of areas to think about before starting the process.

If You Can Get a Better Rate

As we mentioned, interest rates are pretty low right now. However, this doesn’t necessarily mean that you will be able to cash in. If your credit score is the same as it was when you first got your loan – or worse – you may not qualify.

If it has gotten better, find out what your interest rate could be. Then find out what the refinancing fee will be and crunch the numbers to see if it’s worth it.

The Age of Your Vehicle

Another factor that could play a role with refinancing is the age of your car. If it is eight years old or older or has more than 100,000 miles, you may have trouble finding a lender willing to give you a new loan.

To learn more about refinancing and to see if this is a good option for you, just get in touch with the financing department at Scott Chevrolet in Allentown.

Posted in Uncategorized | No Comments »