Why do people refinance their car? And how is it done?

Question

Why do people refinance their car? And how is it done?

Answer 1

People refinance their car for a large number of reasons.

1. Reduce their payments

2. Reduce their interest

3. Add or remove someone from loan

4. Extend terms of the loan

5. Improve credit

6. Skip a payment

It's done by applying for it like any other loan. Once approved and terms are accepted, your title will need to be transferred along with the loan. Most companies will do all of this for you.