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Car installment is one of the monthly expenses that most people have to pay. It might be easy to pay for all the expenses in that month but suddenly you cannot afford to pay for car installment anymore! The late installment payment caused the interest to rise which made you feel uneasy. Today we are going to find out if it is possible for the car under installment to refinance.
It means the borrower has re-borrowed the amount of the loan to repay the old debt by using a car in installment. Even though we’re creating new debt, it’s creating debt that’s extended time to pay off installments and has a low interest. You can refinance with the same financial institution or with the new ones.
It is better than borrowing money from a loan shark which comes with an incredibly high interest rate or a cash card which comes with higher interest rates as well. Refinance by using your car is a perfect choice for you because it will give you more time to solve financial problems, make life more agile, and get through the tough moments.
Many people might have this question as well. The answer to this question is “Yes” and it is good to have more time to pay off of debt.
The difference between Refinance at the same financial institution and new financial institution.
Refinance at the same financial institution is good because they will have all of your information which may help in getting approved easier and save time in filing documents.
If you decide to refinance at the new institution, you may have to prepare all of the documents used in refinancing, but it is worth it if there is an interesting offer.
If it is possible to refinance by using a car that is not under your name?
Legally, it is illegal to use the car which is not your name as an owner no matter if your last name is the same as the owner such as the car is your parents or relative’s car. This is because the financial institution has to make sure that this is not a stolen car.
However, if any of you are interested, you can obtain more information at any institution, bank, or financial institution that you are interested in because there may be different documentation details.
