Proof of residence, such as a lease agreement, a mortgage statement, or a utility bill The make, model, year, vehicle identification number (VIN) and mileage of your car to assess the value of your car The current balance, monthly payment and repayment amount of your loan to determine if you meet the minimum loan requirements. Before signing on the dotted line, cover all your bases by asking the right questions and reading the small print. Talk to lenders and ask: “How does refinancing a car work? In addition, get answers about the annual percentage rate (APR), the length of the loan, and whether there are any origination fees or early payment penalties. If you bought your car when interest rates were high, refinancing your vehicle can save you money, possibly more than you think.
A reduction in the interest rate from just 2% to 3% could save you hundreds of dollars if you don't extend the term of your loan. An auto loan calculator can show you how interest rates affect your monthly payment and the total amount you could pay in interest.