To calculate your potential savings when refinancing your car loan, follow these steps:
- Check your current loan balance: The first step is to find out how much you still owe on your current car loan. You can check your latest statement or contact your current lender to get this information.
- Check your current interest rate: Find out what interest rate you’re currently paying on your car loan. You can find this information on your loan statement or by contacting your lender.
- Find out your new interest rate: Contact potential lenders to find out what interest rate they would offer you if you refinanced your car loan.
- Calculate your new monthly payment: Use an online loan calculator to figure out what your new monthly payment would be if you refinanced your car loan with the new interest rate.
- Calculate your total savings: Subtract your new monthly payment from your current monthly payment. This will give you your monthly savings. Multiply your monthly savings by the number of months left on your car loan to find out your total savings over the life of the loan.
Keep in mind that there may be fees associated with refinancing your car loan, such as loan application fees, appraisal fees, or title fees. Make sure to factor these fees into your calculations to get an accurate estimate of your potential savings.