While you love your Acura car, you may be wondering if your current loan is still the best fit for your financial situation. Many Sherman Oaks, CA drivers consider whether they should refinance an Acura loan to save money or adjust their monthly budget. Like most questions related to Acura financing, there is no single answer that applies to everybody. Here at Acura of Sherman Oaks, our finance team lays out the pros and cons of refinancing your Acura loan.
The Pros: Potential Savings and Flexibility
The main motivation for refinancing your Acura loan is likely to improve your financial position. Advantages include securing a lower interest rate. This can be the case if your credit score has improved significantly since you first signed the loan or if market rates have dropped. You could qualify for a lower APR, which saves you a significant sum over the life of your loan. Refinancing can also lead to lower monthly payments, either through a lower interest rate or a changed loan term.
The Cons: Total Cost and Other Factors
On the other hand, if you choose to refinance your loan to a longer term to lower your monthly payment, the downside is that you will end up paying more overall during the life of the loan. Also, refinancing can lead to fees. Be sure to check if your original loan has any prepayment penalties and if the new lender has any origination fees. It’s also important to keep in mind that applying for a new loan will cause a hard inquiry on your credit report, which can temporarily lower your score.
Acura Financing Experts in Sherman Oaks, CA
For additional tips on whether or not to refinance your Acura loan, contact the finance experts here at Acura of Sherman Oaks. We can help you explore all your options and connect you to lenders all over Southern California if you determine that refinancing is the correct route.
