Can I Refinance My Santander Car Loan

You Want To Change The Loan Term

It also makes sense to refinance your car loan when you need a lower monthly payment. You could extend the length of the loan on your car refinance to get a lower payment. Still, its important to note that extending the length of your loan, which is known as the loan term, reduces your payment but also increases the amount of interest youll pay over time. And it works the other way, too: Reduce the term, and your monthly payment will increase while the amount of interest you pay overall will fall.

Car Loan Refinancing: How To Keep Add Or Drop A Cosigner

• May 10, 2018
• Refinance

When you refinance a car loan, youre replacing an existing loan with a new loan, with better rates and terms. When it comes to a cosigner, youll have the option to keep them, remove them, or add one if necessary when you refinance. But whether or not you can refinance at all depends on your credit and how much it has improved since first taking out your loan.

Benefits Of Buying A Car

There are several advantages to owning a car, as opposed to leasing. Here are just a few of the most important ones:

You own the asset Assuming that you finance the car, it can take a few years to build up any serious equity , but eventually, youll have an asset that can be sold or traded in if needed.

No payments once your loan is repaid When you buy a car, youll eventually pay off the loan and own the car free and clear, at which point youll no longer have a monthly car payment. When you lease, youll always have a car payment.

No mileage restrictions If you own your car, you can drive it as much as youd like without having to worry about paying a penalty. On the other hand, if you lease, youre generally limited to 10,000, 12,000, or 15,000 miles per year before youll start accumulating penalties.

No charges for excessive wear When you lease, youll generally be held responsible for anything that could be considered beyond normal wear and tear. If you get a dent in a car you own, for example, you can choose to fix it or simply live with the dent and save the money.

Customization A vehicle you own can be modified or customized as you see fit. Leased vehicles need to be returned in their original state, so any modifications will need to be removed, which is often impossible or very expensive.

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Common Situations For Refinancing A Car Loan

Your credit score has improved

In most cases, credit score has a large impact on the interest rate attached to an auto loan, so if your score has improved, you may be able to bag a better rate. With a reduced interest rate and APR, refinancing a loan for the same or a shorter duration than remains on the current note can lead to savings.

Like credit scores, market interest rates go up and down over time. A fall in auto rates could provide an opportunity to take advantage and apply for a lower rate on your own loan.

You need to remove a cosigner

Some consumers, such as those with bad or no credit histories,* will apply for an auto loan with a cosigner to help them qualify or improve their terms. However, there may come a time when one or both parties would like to untie their finances. The borrowers credit score may have improved, for instance, or the cosigner no longer wishes to carry the risk associated with the loan. In these cases, refinancing can be a simple solution.

You need a cash lump sum

A cash-back refinance offers qualified applicants the chance to tap into the value of their vehicle to access a lump sum payment. Online lender RoadLoans enables cash-back customers to get up to $5,000, for example. Such a sum could be used for the likes of a home improvement, big-ticket purchase or to consolidate high-interest debt.

Repaying Your Loan Early

You can repay your loan in full any time before the final payment is due by requesting a settlement figure from us.

Read our Your settlement section below to find out how to request a settlement figure and what will be included in your quote.

If you have two or less repayments remaining on your loan, the cost to settle your loan early will be more than what is owed, so it wont be cost-effective for you. We can help if you need to refinance your existing loan or need a top up loan. Please contact us if youd like to talk to us about either of these options.

You can easily make an overpayment with a transfer.

Transferring from your Santander accountTo make a payment from your Santander account, youll need the following details.

• Sort code: 09-00-30
• Reference: Use your loan sort code and account number without any spaces.

Transferring from another bankPlease note that we dont accept international payments. To make a payment from another bank, youll need to pay it to us with the following details.

• Sort code: your loan sort code
• Account number: your loan account number
• Reference: Use your loan sort code and account number without any spaces.

Alternatively, you can do the following.

• Settle your loan using funds from a new Santander personal loan.
• Contact us and make an overpayment.
• Visit a branch and pay by cash or cheque.

• Debit card payment.

Your settlement figure will include:

• your outstanding balance
• interest up to the date of settlement.

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How Do I Know If I Have A Bad Car Loan

A bad car loan is one that you cant afford, or that costs you too much money in interest charges. If youre struggling to make car payments or falling behind on your loan, youre likely in a bad car loan.

Whats important to realize is that circumstances change. You could have taken out a loan on a new pickup truck while you had a good job and could easily make the payments. When youre unemployed, however, the truck payments become a huge burden. You may even fall behind.

Another possibility is that you bought a car when you had a thin or damaged credit history, at a high interest rate. A year or two later, when you have a decent , you could do a lot better. A good car loan when you bought the car is a bad car loan now.

If you think youre in a bad car loan or one that no longer fits your needs, its time to start finding ways out of that loan.

Should I Buy Or Lease A Car

There are several factors to consider when deciding to buy or lease a car, as both options have several benefits and downsides. For example, in addition to the monthly lease or loan payment, you need to consider how much you plan to drive, how often youd like a new car, and if you plan to customize.

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Your Current Credit Score

Check your credit score using one of the three major bureaus: Equifax, Experian, and TransUnion. Is your credit score better than it was when you initially applied for a car loan? If so, now might be a good time to refinance. Remember that refinancing will result in another hard inquiry on your credit report, which will negatively affect your score for about a year. It may also lower the average age of your accounts, which can negatively affect your credit score. If you need a high credit score for another reason, like applying for a new mortgage or taking out a new lease on an apartment, consider this in your decision to refinance your car.

How To Refinance Your Car

If you have a car loan that you are looking to refinance, consider asking RoadLoans for help. We work with a variety of credit situations and have assisted many people in coming up with a plan to help them save money on their car loan. To understand how simple this process can be, we have developed a complete step-by-step guide on how to refinance your car that is outlined below.

When considering whether or not to refinance a vehicle consider your options.

1. Start off by researching your current situation. Review the terms of your current loan agreement. Determine the interest rate, payment amount, duration, requirements for early loan termination and any origination fees required.

2. Make sure you obtain a copy of your current credit score. If it has changed since you applied for your current loan, consider how it may affect a possible refinance. Also consider current debt. See what your current loan debt is, what you are going to owe and how you are planning to pay it off.

3. Research current loan options for yourself. Using your current loan to compare, research different options for a loan refinance to see if it can help you save money, especially in the long run. RoadLoans offers cash-back refinancing and traditional refinancing. Try using the auto refinance calculator at RoadLoans.com to help estimate potential savings.

RoadLoans is not a credit counseling service and makes no representations about the responsible use of or restoration of consumer credit.

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You Hate Your Current Lender

Many people choose to refinance simply because they dont like the way their current lender does business. Rude customer service reps or poor record keeping can really sour a relationship with a lender. If you really cant stand your current lender, refinancing with a new lender may help alleviate some of your frustrations.

Can I Get Guaranteed Auto Refinancing

Theres never a bad time to save money, and applying for auto refinancing is a great way to see if you can trim your expenses and enjoy a little extra cash in your budget each month.

While its hard to say you can get guaranteed refinancing, as everyones situation is different, its certain there are auto lenders that accept applications from people with all types of credit.

So even if you have bad credit,* perhaps the legacy of missed payments, even bankruptcy of repossession, you can still look to refinance your car loan for better terms.

Theres a clue in your credit history

Knowing your credit position, typically a major factor in lending decisions, will give you a better understanding of how likely you are to be approved. In simple terms, consumers with bad credit scores are less likely to be given the green light than those with better credit. You can check your credit reports with the major reporting agencies for free once a year and, for a fee, request your credit score. There are also ways to find your score without cost: many credit card companies allow customers to view scores within their online account information, for example. Keep in mind you have more than one score which may be different according to its source.

The advantages of approval

Estimate potential savings

Get a quick, easy answer

Apply for auto refinancing.

RoadLoans is not a credit counseling service and makes no representations about the responsible use of or restoration of consumer credit.

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Next Steps: How To Refinance A Car Loan

When it comes time to actually refinance your loan, there are some steps youll need to take. These include gathering your documentation, doing some comparison loan shopping, choosing a lender, applying, then paying off your old loan and making payments to your new lender. Here are six steps you can take to refinance your car.

When youre shopping around, make sure you dont go with the first offer youre presented with, either. Take your time and request quotes from multiple lenders. Compare the APR, term, payment amount, fees and penalties from each lender to find the best offer. Once you make a choice, the lender will guide you through the exact process and what comes next.

Best Bank For Auto Refinance: Bank Of America

Bank of America

• Minimum credit score: Not stated
• Loan terms : 48 to 72 months

If youre looking to refinance your auto loan at a big bank, Bank of America is a good option. The lender features multiple refinance options and an easy online application process.

• Transparent rates and terms online

• Established financial institution

• Minimum finance amount of $7,500

• Must have fewer than 125,000 miles

• Car can’t be valued at less than $6,000

Among big banks, Bank of America offers competitive refinance rates and an easy overall process. It’s open to borrowers throughout the nation and scored exactly the average in J.D. Power’s 2020 U.S. Consumer Financing Satisfaction Survey.

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Message From Santander Consumer Usa Car Financing

Santander Consumer USA Holdings Inc. is a public, full-service, consumer finance company focused on vehicle finance and third-party servicing. The company manages accounts for more than three million customers across all credit profiles. Headquartered in Dallas, TX, Santander Consumer USA Holdings Inc. is the parent company of Santander Consumer USA Inc.

Santander Consumer USA is committed to providing excellent service to our customers, our people and our community by placing our Simple, Personal and Fair values at the center of everything we do. We strive to treat customers as they like to be treated and earn shareholders an adequate and sustainable return, while recognizing our responsibility to help communities.

When you finance your vehicle through Santander Consumer USA, youre in the drivers seat with our MyAccount tool, Auto Pay payment option, Learning Center or other tools and resources. We look forward to providing you a positive customer experience on your road to car ownership.

Santander Consumer Usa Q& a

What type of help do you need?

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Your Credit Score Has Improved

Your credit score is very important in car finance, as auto lenders sort applications by credit tiers. The APR you get, as well as whether you even receive an offer, are both largely determined by the credit tier youre in. If your credit score has improved since you initially purchased the vehicle and youve moved up a tier, then its likely youll qualify for a better financing deal. Heres how you could improve your credit score.

Getting a better APR could save you quite a bit in interest over the life of your loan. For example, refinancing $15,000 from a 7% rate to 5% when making a monthly payment of a couple of hundred dollars would save you around $800 in interest.

Heres how much you would pay in interest over the life of a 5-year loan if you borrowed $25,000, based on the APRs for closed auto loans by credit score on the LendingTree platform in the first half of 2021.

Option : Refinance Your Auto Loan

Another option is to try to refinance through your auto lender or another lender. You might be able to get a lower interest rate which would reduce the size of your payment. You could also try a longer loan term. This would lower your monthly payments to a more affordable level however, you may end up paying more for your car over time.

Lastly, think about whether your vehicle is still affordable. Sometimes your financial situation changes and a purchase you made is no longer affordable. If this has happened to you, consider trading in your current vehicle for a more affordable one. If you sell or trade in your current vehicle, its value and how much you still owe will be an important factor in your decision.

Talk with your lender about the benefits and costs of each option and determine which one works best for your situation.

When you speak with your lender, be sure to get the name of the representative, their ID number , and any applicable case numbers associated with your request. Its also a good idea to ask the lender to provide you with the agreement in writing.

If you are experiencing financial hardship that could impact your car ownership, be sure to check out the tools and answers to common questions we have on auto loans, including on the options discussed in this blog.

This blog is intended to educate and engage consumers on auto finance issues. If you’ve already tried reaching out to your lender and still have an issue, you can submit a complaint.

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