Subaru Financing 101: All About Refinancing

When it comes to Subaru financing, refinancing is a topic that often comes up. This is a popular financial option that allows many drivers to better align their auto loan with their current financial situation. Understanding how the process works is the first step, and the experts at Kirby Subaru of Ventura are here to provide an overview of refinancing your auto loan.

What Is Refinancing, and Why Consider It?

Refinancing is the process of taking out a new loan to pay off your existing car loan. This new loan has different terms, and the goal of refinancing is typically to improve your financial position. The first primary reason many people choose to refinance their loan is to get a lower interest rate, which can save you money over the remaining loan term. This is possible if your credit score has improved or if market interest rates have dropped.

You can also potentially get a lower monthly payment if you refinance. This can be achieved through a better rate or by extending the loan term.

What Do Lenders Look For?

When you apply to refinance, lenders typically look at a few things to approve your application:

A consistent history of on-time payments

A current loan balance that is not significantly higher than your Subaru car’s market value

A vehicle that is not too old and does not have excessively high mileage

How Does Refinancing Affect Your Credit Score?

Applying for a new loan will result in a hard inquiry on your credit report, which causes a small, temporary dip in your score. However, you can easily recover from the small impact and even improve your score by making on-time payments on your new loan.

Speak with Our Subaru Financing Experts in Ventura, CA

The finance team at Kirby Subaru of Ventura is an excellent resource for guidance on your Subaru financing needs. If you have questions about the refinancing process, contact our team of friendly experts today!