“Is car refinancing for me?” “What are the benefits of car refinancing?” “Am I qualified to refinance my existing car loan?”
These are some of the few questions that we get from time to time. This article will help you determine if refinancing is for you. Some benefits and qualifying criteria were also provided on this.
In Singapore, most of those with outstanding loans are usually eager to benefit from car loan refinancing by getting the lowest interest rate as this will help them save a lot of money from their monthly instalments. By refinancing you car loan, you can lower your monthly instalments and negotiate the terms of the car loan. But before you start calling up the local banks and financial institutions, you must first determine it is suitable for you and on how it should be done.
Is car refinancing for me?
Car refinancing is for you IF:
1.) You are currently paying a high interest rate.
2.) Your car loan features a fluctuating interest rate.
3.) Your credit has improved since your initial car purchase.
4.) You are currently experiencing some financial circumstances.
What are the benefits of car refinancing?
1.) A much lower monthly instalment.
2.) You can negotiate for better loan terms.
3.) You will end up paying less over the life of your loan.
4.) You can either extend or reduce your loan repayment.
5.) Possibility of getting a huge car loan interest reduction.
“Am I qualified to refinance my existing car loan?”
In Singapore, only passenger cars are allowed to be refinanced. It is always ideal to refinance your existing loan if your current interest rate is 2.2% and above. For the loan amount it should be $30,000 and above, whereas the minimum loan period of refinancing a car is 3 years. You also need to take note that those who are under a cash rebate scheme are not qualified to refinance their current car loan.
Always remember that refinancing your auto loan, can save you a lot of money throughout the remaining loan period. The process for refinancing a car loan is easy and very fast to complete. It is indeed a great way for anyone to start saving money immediately on that current car loan.
Unfortunately, in Singapore, there are only a few banks and financial institutions who offer such service. It is always best to contact a credit company to assist you on refinancing you car loan, as they know how to handle such process and can help you get an approval at the shortest possible time.
Contact Lynn Chai at +65 6444 4400 to know more about car refinancing.