Credit Check

• Refinancing an automobile requires an additional credit check. If your credit has suffered since the original loan, difficulties in approval could result.
  
  

Time Frame

• Refinancing your vehicle could result in extending the amount of time it will take to pay your vehicle off.
  
  

Changing Automatic Payments

• If you have set up your monthly car payment as an automatic payment from your checking account, you will need to cancel this payment and create a new automated payment. Another option is canceling the automatic payment and paying each month by check.
  
  

Security

• When negotiating to refinance your automobile you can negotiate and ask for your best rate without fear of a lack of financing if you are turned down. You will still have your original loan in place.
  
  

Savings

• The biggest advantage of refinancing a vehicle is the ability to lower your monthly payments. This can allow you to use that money for other purposes in the short term which you would not have been able to accomplish under your previous financing.