How can I refinance my car loan with bad credit?

The number of car loans has increased significantly in recent years. This is mainly due to the fact that there are offers with 0% financing, which is a cheap loan for buying a car. With these offers, there is no interest, so that financing is also worthwhile for private individuals.

Here, the main banks of the automobile manufacturers are to be mentioned, which have already withdrawn from the segment, but are now regaining their market shares and largely controlling the market.

Can you refinance a car loan?

Determine the basic price

For every purchase, whether cash payment or financing, the basic price of the vehicle is to be determined, which is the basis for all calculations. This applies to new cars as well as to used vehicles. Vehicles with an age of up to three years are particularly interesting here. If one takes such consideration into account, a cheap auto car loan for bad credit can result. We noted that it is important to refinance a car loan with bad credit at reasonable terms.

The brand of the vehicle should not be underestimated for this price. It is therefore advisable to forego the so-called premium brands such as BMW, Audi or Mercedes, which have high basic prices even in the smallest vehicle class with little standard equipment, and to opt for cheaper manufacturers.

As a rule, you receive a 14% discount on the basic price when paying in cash. With financing, this discount usually does not apply and interest accrues from approximately 0% to approximately 2% per year. On average, this is less than you would get from a normal house bank when borrowing. So you can assume that the offer of the respective car bank is a cheap loan for buying a car.

Compare offers

Compare offers

When choosing the car, you will find that many brands often offer similar models, but the prices are very different. It is advisable here to compare and compare the respective base price with the different financing offers. This is the only way to ensure that you get the best option. It may well be that a vehicle with a higher base price is cheaper due to the financing model than a vehicle with a lower base price.

Interest-free loan

Interest free loan

Many offers offer 0% financing. The principle applies here: the longer the term, the more interest, the shorter the term, the higher the rate. In the case of an offer with 0% financing, it is advisable to choose a term that is as long as possible so that you get a relatively low rate.