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3 Steps To Take When Refinancing Your Auto Loan

Marylen Yiris
By Marylen Yiris - May 18, 2024

Don't know where to begin when looking to refinance your auto loan? 

You’ve decided that your current auto loan rate is way too high and you want to see what other options are out there and available to you. When it comes to refinancing your auto loan, there are three things you’re going to want to keep in your mind.

1- Check your Credit: It will come handy when negotiating the best auto loan rate. 

It’s no secret that your auto loan depends largely on your credit score, and the higher the credit score, the better your loan rate will be. When you first decide you’d like to start the auto refinance process, it’s important to look at your credit score. Has your credit score improved since you took out your original auto loan? If you’ve seen a rise in your credit score, then chances are you’re in a perfect place for a lower interest rate. If you haven’t seen too much of a change, it might still be a good idea to talk to Tropical Financial and see how we can help you get to a more appealing credit score.

There are a few ways for you to review your credit score to see where you stand; first, you can always go to annualcreditreport.com. Annual Credit Report allows you to pull on free credit report each year. You can also turn to credit karma, or you can schedule a free financial checkup with Tropical Financial to see where your credit is and work with a financial advisor to get you on a plan to have you refinancing before you know it.

2- Prepare the necessary documents: Here are items to check off your list to ensure you get a low interest vehicle loan, especially in Miami! 

Now that you’ve figured out where you stand, there are a few documents you’re going to need when you start your auto refinancing process.

  • Vehicle information. It’s important that you have the Vehicle Identification number (VIN), mileage, make, model and year of the vehicle.
  • Current loan information. You’ll need to know the balance you have left on loan, the loan terms, the lender's name and if there is a co-application, you’ll need to have their information too. Like their name, address, phone number and social security number.
  • You’re information. You’ll also need to provide your address, employment information and a copy of your social security number. As for your address, it’s always best to submit to forms of documentation, a mortgage/ rent bill, and a water bill are always two good forms to provide. You’ll also want to make sure you have a valid driver’s license and proof of insurance too. 

3- Reach out to industry leaders in South Florida auto loans: Tropical Financial Credit Union

TFCU is in your corner, and we want to help you save as much money as possible. Maybe when you first applied for your auto loan, you went to the dealership or another financial institution. That’s okay because we are here to help you with the refinancing process.

Refinancing is a great option for those interested in a lower APR or for those looking to lower their car payment. To contact someone about auto refinancing click below: 

Have a question? We'll call you.