• Refinance
  • Why Capital?
  • How It Works
  • Benefits
  • Which Option is Best?
  • FAQ's
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Benefits of Refinance

• • What is car refinancing and how do I benefit?
  • Why Refinance your Car Loan?
  • You don't need an appraisal to refinance your car loan
  • Who should refinance their car loans?
  • What about loan fees and early payoff penalties?

What is car refinancing and how do I benefit?

Car refinancing is one of the best kept secrets around for saving you money, but most people never thought of refinancing their car. Car refinance is the same as home refinance. When refinancing car loans, you pay off your current car loan with a refinancing car loan from a different lender that has a lower interest rate. This is good for you because refinancing auto loans makes your monthly car loan payments lower, and your interest rate drops, which can allow you to pay off the balance of your car loan even quicker.

Record numbers of homeowners refinanced in 2001 and 2002, and now many car owners are realizing you can save thousands of dollars by refinancing auto loans too. Car refinancing has become a very popular trend with dropping interest rates. It's like finding a wad of cash you didn't know you had in your clothes after doing the laundry. Use the money you save to pay off credit card debt or accelerate your car loan payoff.

As most lenders will not refinance their own car loans, Capital Finance will help you refinance your car loan with an alternative lender to a lower interest rate. Even bad credit borrowers can refinance to a lower interest rate, but many often don't think to try believing that they are stuck at a high interest rate.

Why Refinance your Car Loan?

Many clients refinance simply to just get a better deal. Capital Finance’s low interest rate will reduce both your term and the amount of interest you pay over the loan period, saving you huge $$$.

You could also choose a balloon payment or residual option. This variation is slowly growing in popularity. By setting a larger balloon payment for the end of the term, which can vary according to circumstances, you can reduce your monthly payments to better balance your budget. At the end of the term, you can either pay out the full amount in one hit or refinance the balloon amount and continue paying off the car over a new loan period.

Alternatively, you may have already paid for the car in full with your own savings. See our Finance-Back option to borrow against the equity in your vehicle.

Finally, you may just be switching from a business type loan to a personal loan to avoid paying unnecessary stamp duties & GST, or vice versa ie switching from a personal loan to business finance to take advantage of possible tax benefits.

Whatever the reason, Capital Finance is confident that we can arrange a better deal.

You don't need an appraisal to refinance your car loan

Many people erroneously believe an appraisal is required to refinance their auto loan. Unlike your home, which does require an appraisal because it is based on your equity in the home, car refinancing is based on how much you need to pay off your current car loan, not on the value of the car.

Who should refinance their car loans?

If you have more than $10,000 in car loan debt that you are paying too much for then you need to consider refinancing your car loan. It's very important to refinance your auto loan early, because with car loans, the interest is mostly paid in the earlier payments. The earlier your car loan is refinanced, the more money you save.

What about loan fees and early payoff penalties?

Capital Finance will recommend lenders who have low fees or do not have any fees. It's a seamless process that is completed in a few days and will feel like you never even left your loan. The only difference will be your monthly car loan payments will reduce delivering you the savings you never expected.