No matter your age or season in life, you may find your cash flow tightening and the need to find a little wiggle room in your budget becoming more of a necessity than a nice-to-have. If you’ve already reviewed your budget and found ways to trim expenses, but are looking for a little more financial freedom, refinancing your vehicle loan may be just the thing you need.
This can help lessen your financial burdens and make summer even more enjoyable. Verve offers its members 90 payment-free days with vehicle loans when they refinance their car, truck, RV, motorcycle or boat with Verve. So, what is all involved in refinancing a loan, and is it right for you?
What Does it Mean to Refinance a Vehicle Loan?
Refinancing a vehicle loan means you are taking out a new loan to pay off the balance of your existing loan and transferring the title to the new lender — this results in a new interest rate, a new loan agreement and a new loan term.
Is Refinancing Right for You?
You may want to consider refinancing your vehicle loan if:
- Your financial situation has improved. If you’ve made payments on your existing vehicle loan and have improved your credit and debt-to-income (DTI) ratio, you’re more likely to qualify for better rates and terms on a refinanced loan.
- Interest rates have dropped. Interest rates are constantly changing to match market fluctuations. If auto loan rates have dropped since you took out your original loan, you’ll end up with significant savings over the life of the loan.
- You’re struggling to keep up with bills. If you are dealing with an unforeseen financial crisis or strained budget, refinancing can help bring your finances to a more manageable level by lowering your monthly payment amount.
- You want to free up cash for another use. Whether you want to go on more day trips, take a big vacation, invest in more home improvement projects or pick up a new hobby, refinancing your auto loan can provide just the right amount of wiggle room your budget needs.
Benefits of Refinancing a Vehicle Loan
Refinancing a vehicle loan can provide several key benefits, including:
- Give yourself a 90-day vacation from loan payments. When you refinance your vehicle loan with Verve, you’ll get a 90-day respite which gives you the wiggle room to take care of other short-term financial priorities.
- Lower interest rate. One of the best reasons to refinance your vehicle loan is to lower your interest rate. A lower interest rate can help you save money on the cost of the loan over time and help you pay your loan off faster.
- Lower monthly payment. Vehicle payments can have a major impact on your monthly finances. There are two ways you can lower your monthly payment through refinancing: getting a lower interest rate or extending the loan term (or both).
- Cash for other expenses. You might be able to secure refinancing that not only pays off your old loan but that also puts some extra cash in your hands, to use as you see fit.
- Payoff other debts: Refinancing allows you to “cash out” on equity from your car, enabling you to prepay other debts.
How Verve can help
At Verve, we’re committed to making life a little easier for our members. That’s why we want to help you say goodbye to your vehicle payments. Refinance your car, truck, motorcycle, boat, 4-wheeler or RV with us and ride free for 90 days.