Subaru Financing 101: All About Refinancing
If you want to lower the costs of your current vehicle loan, our Subaru finance center is here to help. Refinancing your vehicle can be a great option that can save you money on your monthly payments thanks to lower interest rates and other more favorable terms. Learn everything you need to know about refinancing with Jensen Subaru.
Refinancing Requirements
When refinancing your current loan, there are several requirements you must meet. First, your current loan must be open for a certain amount of time-for most lenders, this is at least six months. Your vehicle must also meet certain criteria, including being newer than ten years old and having 150,000 miles or fewer on it. Your personal finances also matter when refinancing, as most lenders will set a minimum credit score required for a new loan. Lenders will also examine your payment history and debt-to-income ratio.
How Does Credit Score Impact Refinancing?
One of the most important factors to consider when refinancing a new Subaru vehicle is your credit score. Getting your credit score above 700 can greatly increase the chances you get approved for refinancing. A higher credit score results in lower interest rates, meaning you'll pay less for your vehicle over time. Your credit score will not be heavily impacted by refinancing since it is replacing your current loan; however, it may take a temporary hit when applying.
When Should I Refinance?
There are several reasons why you might want to consider refinancing. One of the most common reasons is that interest rates have dropped since you originally financed your car. You might also want to refinance if your credit score has significantly improved since your first application. If you have a co-signer on your contract that's no longer needed, you can also remove them by refinancing the loan. Other reasons include needing a lower monthly payment and wanting to pay off your loan quicker.
Refinance with the Subaru Financing Experts
If you have any additional questions about refinancing your loan, contact our Sioux City, IA, Subaru dealership today. You can also explore our new Subaru specials to see how they compare to refinancing your vehicle. Schedule an appointment online to get started!
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Jensen Subaru
3909 Stadium Dr
Sioux City, IA 51106
- Sales: 712-255-3000
