If i wanted refinance my car. What are the pros? What are the cons?

Question

If i wanted refinance my car. What are the pros? What are the cons?

Answer 1

Refinancing means paying off one loan and getting another, hopefully for lower payments. But the only way to get lower payments is to either get a better interest rate, and/or get a longer loan. Sometimes it's not possible to get a lower interest rate, depending on your credit. Here's an article with more details:

http://www.leaseguide.com/Articles/auto-...

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Answer 2

Pros

- possible lower payment

- possible lower interest (less money total for car)

- possible payment skipping

- better your credit

Cons

- to get lower monthly payment you may have to extend the term (# months) and that's more interest

- going to too many lenders over a long period of time and then pulling your credit may ding your credit score

- there are some bad lenders/broker out there, gotta watch who you do business with

Please let me know if you have specific questions other than this. It is a great thing for a LOT of people. But not for everyone.