Can I Extend My Car Loan? Understand Your Options for Refinancing

David Majedi

Mar 21, 2024

Can I Extend My Car Loan? Understand Your Options for Refinancing

Can a car loan be extended? It depends. There are many factors that can influence whether you will be approved for refinancing to extend your car loan. If you have improved your credit since buying your car, extending your car loan may be possible.

If you have a car loan and are looking for a way to reduce your monthly payments you might wonder, can I extend my car loan? Though it is sometimes possible to extend your car loan, it might not always be possible or even the best solution for your needs. Let’s explore what you should know about extending your car loan and find a way to help you better manage your monthly expenses.

At Autorama, we are dedicated to helping our customers drive cars they love while also suiting their budget. When looking for used cars for sale in Toronto, we are your top choice and we are here to help you navigate finding an affordable used car. In this post, we explore extending a car loan and help you determine if this might be the right decision for you.

Can a Car Loan Be Extended?

If you had poor or little credit when you first purchased your car then there is a good chance that you have a less than ideal financing rate. However, if you’ve been paying down your loan for some time, there is also a good chance your credit score has improved. If this is the case, refinancing could be an option.

Though many choose refinancing for a better interest rate, some turn to refinancing to extend their loan and reduce their monthly payment. Though extending a car loan is often possible, it may not always be the most cost-effective decision. Always keep in mind that even though your monthly payments are lower, extending your car loan will likely cost you more in the long run.

See our post, Should You Refinance Your Car Loan? What You’ll Want to Know, for more information on refinancing options.What Other Options Might I Have?

If you are looking for ways to reduce your monthly expenses and are unsure if refinancing is right for you, you might be curious about other options. Though refinancing is one way to reduce your monthly costs, it is not the only one. Consider selling your car and finding a cheap used car for sale, or look into debt consolidation to better manage your expense.

Our post, Is Debt Consolidation an Option for Car Loans?, offers additional insight into debt consolidation as an alternative to refinancing your auto loan.

At Autorama, we are always here to help our customers find a vehicle that suits both their budget and lifestyle needs. Contact a member of our team today to discuss your options and let us help you drive a car that perfectly suits your needs. 

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David Majedi

David brings a decade of experience to his role as Finance Manager at Autorama. Having served a diverse clientele with unique financing needs over the years, he has gained comprehensive knowledge of the market and forged created relationships with all lenders, including banks and private lenders.

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