Discover how Chase auto refinance compares with outer auto refinance lenders. Here is an in-depth review of the pros and cons, and the application process.
Chase is one of the “big four” U.S. banks which collectively holds 39% of U.S. customer deposits. It offers a wide range of products including credit cards, banking, home loans, personal loans, car loans, and investing services.
So, being that it’s one of the biggest banks, you may be wondering if it can it offer you the best deal on refinancing your vehicle. It’s possible, but to find out for sure, you’re going to have to do a bit of research.
Read on to find out:
Should you refinance your car loan?
The first question to answer is: should you be refinancing your auto loan? Here are several common situations when it is beneficial:
1. When you can lower your interest rate
The most common reason to refinance an auto loan is if another lender offers you a lower interest rate than you currently have. This might happen if your credit score has gone up, interest rates have dropped, or you got a bad deal from your current lender.
It also might happen if the lender offers exclusive discounts (i.e., Chase offers 0.50% rate discount for having a qualifying personal bank account and setting up automatic payments). Switching can enable you to cut your costs and save money.
2. When you can reduce your monthly payment
A less common, but understandable, reason to refinance your auto loan is if you need to lower your payments. By refinancing, you may be able to extend your term and pay less each month. While this may cost you more in the long run, it can be a better solution than defaulting on your loan.
3. If you want a better customer experience
You may also be unhappy with your current lender’s customer service. Maybe the company is not very helpful, doesn’t have up-to-date technology, or has caused you undue stress. If this is the case, refinancing allows you to choose a new lender with a better reputation.
4. When you want to lower the cost of your insurance
Lastly, Parker Daniels, a personal finance and insurance specialist with The General Auto Insurance, says, “Different lenders have different requirements for the amount of coverage you must have on your financed vehicle in collision, comprehensive, and even GAP coverage.”
He adds, “By refinancing your auto loan, you could save money on the cost to insure your vehicle.” You will have to check with prospective lenders to see what insurance requirements they have in place.
3 steps to figure out if Chase is right for you
Now that you know when it might be beneficial to refinance your auto loan, here are three steps to figure out if Chase will offer you the best value.
1. Find out if you qualify with Chase auto refinance
You can apply to refinance your auto loan online at Chase.com. You will need to provide your personal information (birthdate, social security number), contact information, residence status, current employment and income information, co-applicant information (if applicable), and vehicle information (make, model, year, and mileage).
There are also a few requirements including:
- Your loan must be at least $4,000
- Your vehicle cannot be more than five years older than the current model year
- Your vehicle’s current mileage cannot exceed 75,000 miles
If your situation checks these boxes, here’s how to apply:
Visit Chase.com, click on the drop-down menu, and select “Car Buying and Loans.”
Click the button to “Lower your payment” in the Auto Refinance box.
Click “Apply now.”
Take note of what you need to get started and click “Next.”
Enter your personal and contact information.
Create a user ID and password.
Enter your employment and income details.
Provide your loan and vehicle information.
Double check all of your information.
Read the terms and conditions, agree, and submit the application.
That’s it! You will find out if you qualify and the terms that you can get. Then, you can take that information to the next step.
2. Calculate your savings
Now that you know what Chase can offer you, it’s time to compare it to your current rate and terms. Chase has a refinance payment calculator on its website that can help.
You enter your loan amount, APR, and term and it will estimate your monthly payment, total interest, and total cost of the loan. Easily compare your current loan to your new one to see if it will help or hurt you.
3. Shop around
Your job isn’t don’t yet. Once you know how Chase’s offer compares to your current loan, it’s time to shop around. While Chase may very well offer you the best deal, you won’t know for sure until you check with a few other lenders.
Note that a recent report looked at 2.4 million auto loans and found that people save significantly by checking with at least two lenders before making a choice (the more lenders, the better).
One of the easiest ways to get quotes is by using SuperMoney’s auto loan engine. In about two minutes, you can receive offers from various lenders competing for your business.
It’s a way to turn the tables and bring the lenders to you rather than going out and applying for each one. And, as a bonus, it won’t impact your credit score.Get your loan rates now!
Is Chase auto refinance right for you?
If you’ve come this far, you are getting close to finding the right lender for your situation. Compare the offers you receive against Chase and your current lender.
Consider rates and terms as well as each company’s reputation, technology, and values. With all things considered, pick the one that will offer you the best overall return on investment.
Maybe that will be Chase, maybe not, but you can rest assured in knowing that you did your due diligence to find the best possible deal for your situation.