Most Rational Reasons For Refinancing A Car Loan

author image Tuesday 19 May 2015, 17:00 PM Car-Finance

A car refinance loan is a safe and sound credit just like other personal loans. The only factor that makes them favorable is lower interest rates and a simpler financing process. Car refinance loan allows its subjects to raise loan against their existing vehicle. You can avail it from any car loan finance service just by pledging your car’s legal documents to it.  The primary difference between a simple car loan and refinance loan is that the former one is used to purchase a new car while the later fulfills your financial requirement by mortgaging the vehicle you already have. There are several other reasons that make a direct appeal in favor of these types of car loans in India. Let’s take a glance at some of them.

Refinancing a car loan
Refinancing a car loan
  • Secured – A car refinance loan is more secured as compared to normal loans, reason being these are raised against quality of your car.

  • Money Saving – Car loan finance companies charge lower interest rates for refinance loans as compared to home mortgage loans. Usually, refinance loans are considered as used-car loans which is higher compared to new car loans. But if the present rates are slightly lower than the time you purchased the car, the deal is definitely in your favor.

  • Fair Deal – Unlike other personal loans that are granted on the basis of your monthly income, car refinance loans are given on the basis of your car value. It if a fair deal given the fact, many a times, our car has better evaluation compared to our salary.

  • Lower Processing Charges – The paper work for car refinancing might be comprehensive compared to other loans, but it’s worth it as this one processes at lower prices. In short, it plays significant role in saving your money, time (to some extent), and energy.

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