Q&A: What does refinancing your car loan mean?

Question by unidentified: What does refinancing your car loan mean?
I’m sorry if this is a really dumb question, but earlier someone suggested I refinance my car loan, but I have no idea what that means. I looked it up online, and it said something about lowering your payment interest when you transfer to a new lender. Coudl someone delight explain in detail what refinancing your car loan does? Does it lower the amount of money you pay monthly? And if so, does that mean I would have to pay for more months?

Best answer:

Answer by NoraCat
Refinancing an existing car loan is a leisurely process. A freshly lender pays off your old car loan, and the entitled is then transferred to that unexampled lender. Your monthly payments are then made to your new lender. People refinance to get a better interest rate, which means over the full time of the loan, you’ll end up not having to pay as much. Your monthly payments will be less, or the number of payments you have to make will be less, or both.But here’s another idea – if you find that your car payments are really hurt your financing, consider just selling your car, paying off the lending, and then bought a cheaper used car with or without a lent. Yeah, you won’t have a flashy set of wheels anymore, but you’ll have a lot more money in your pocket.

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