It is possible that when you purchased your Mercedes-Benz vehicle you didn’t get the best Mercedes-Benz financing terms. If this is the case, refinancing could be in your best interests. But before you do this, you need to make sure that it will be worth your while, and Mercedes-Benz of Orange Park has four areas to pay close attention to.
Interest Rates
The first thing to do is figure out the interest that you currently pay on your loan. Then find out how much this could be reduced. If it is minimal, it is probably best to reconsider refinancing.
Current Loan
The next area to look at is your current loan and how much time and money it has left. Many lenders won’t refinance if a loan has less than $3,000 to pay. And if there isn’t much time left on it — perhaps it has less than a year — proceed with caution. This is because the refinancing fees (see below) may negate any financial benefits.
Credit Score
Many car buyers end up with a high interest rate due to low credit. If you are in this group, look at your current score. If it is still on the lower side, you may not qualify for an interest reduction. If, on the other hand, it has gotten much better, refinancing could help save you a lot of money.
Refinancing Fees
It is important to remember that refinancing does come with fees. Be sure to find out what these are. Once you know what your new interest rate could be, you can then do the math to determine whether or not refinancing will actually be beneficial.
Get More Information About Mercedes-Benz Refinancing
Any questions about refinancing? Contact Mercedes-Benz of Orange Park. Speak to our financing professionals to get all of the information you need — get started today!
