| In the vast world of loan refinancing some individuals and households trying to manage a monthly or annual budget can rehttps://www.assethttps://www.assetfinancesolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-refinance-your-vehicle-loan-2.jpegsolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-rehttps://www.assetfinancesolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-refinance-your-vehicle-loan-2.jpeg-your-vehicle-loan-1.jpeg a vehicle loan to save money. The new loan often with a new lender could improve your https://www.assethttps://www.assetfinancesolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-refinance-your-vehicle-loan-2.jpegsolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-rehttps://www.assetfinancesolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-refinance-your-vehicle-loan-2.jpeg-your-vehicle-loan-1.jpeg plan terms by reducing monthly vehicle repayments and lowering interest rate. What is refinancing a vehicle loan? To rehttps://www.assethttps://www.assetfinancesolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-refinance-your-vehicle-loan-2.jpegsolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-rehttps://www.assetfinancesolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-refinance-your-vehicle-loan-2.jpeg-your-vehicle-loan-1.jpeg a vehicle means to replace your current vehicle https://www.assethttps://www.assetfinancesolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-refinance-your-vehicle-loan-2.jpegsolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-rehttps://www.assetfinancesolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-refinance-your-vehicle-loan-2.jpeg-your-vehicle-loan-1.jpeg agreement If you previously had no credit or bad credit it is worth checking into refinancing your vehicle loan after a couple of years to see if you receive better offers. By refinancing, you could receive a new vehicle loan with a lower interest rate and lower monthly payments. If you keep the term the same, you could save money over the duration of the loan Whatever your reason for refinancing your vehicle loan, it’s important you consider the pros and cons depending on your situation and make sure you will benefit from it. Shopping for a better vehicle loan and refinancing your current vehicle loan is quick and easy and can save you money. Your credit score may have improved enough to qualify you for a lower interest rate. Vehicle refinancing means taking out a loan to pay the existing balance on an existing vehicle https://www.assethttps://www.assetfinancesolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-refinance-your-vehicle-loan-2.jpegsolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-rehttps://www.assetfinancesolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-refinance-your-vehicle-loan-2.jpeg-your-vehicle-loan-1.jpeg loan. |
1. Collect the necessary documents
- A copy of your valid driver’s licence
- A copy of your green bar-coded ID
- Your proof of income
- Your proof of address
- Latest 3 months bank statements
- A settlement letter from the bank
- Your vehicle roadworthy certificate (only necessary upon signing of the contract)
2. Comparison Shop
Here are the things to compare
- The annual percentage rate – As a rule, the lower the interest rate, the more favorable the loan, but there are exceptions.
- The term of the loan – A longer loan term usually results in higher interest payments overall even if the monthly payment is lower than other options.
- The fees and penalties – These may include an origination fee, a funding fee, a title fee, a document fee and a prepayment penalty on the current loan.
- To get the best idea of what you’ll be paying, compare the total cost of each loan. It’s also a good idea to calculate how your monthly payment will fit into your budget.
3. Decide on a Lender
Once you have quotes from multiple lenders and have compared them, you should choose the loan that best suits your needs. It’s always a good idea to get the contract ahead of time so you can read the fine print.
The lender will provide you with a list of requirements to close the loan. This list will typically include a check for any fees associated with the loan closing, a formal payoff letter from your current lender and other documentation.
4. Settlement of your current loan
Asset Finance Solutions will settle the current lender the full amount of the settlement once the contract for the new loan agreement is signed by the client. Once the settlement is paid the new signed contract will be submitted to the new lender. Once the initial loan is settled and paid in full AFS will obtain the original Natis document and register the asset (Vehicle) in the new lenders name as the title holder and the client as the title owner.
5. Make Payments
The final step, of course, is to begin making payments on your new vehicle loan. If you have confirmed there is no penalty for repaying your loan early and you can afford to do it, you may want to consider adding a little extra money to each monthly payment. By doing that consistently, you can save a significant amount of interest over the lifetime of your loan. Refinancing a vehicle loan doesn’t need to be complicated if you follow these five simple steps. Remember that you always have the right to ask questions. A reputable lender will always answer them. To learn how Asset Finance Solutions can rehttps://www.assethttps://www.assetfinancesolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-refinance-your-vehicle-loan-2.jpegsolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-rehttps://www.assetfinancesolutions.co.za/wp-content/uploads/2022/03/5-easy-steps-to-refinance-your-vehicle-loan-2.jpeg-your-vehicle-loan-1.jpeg your vehicle loan, please click here.