Cash-Out Car Refinancing
Cash-out Car Refinancing enables you to leverage the equity in your vehicle (the current value of the vehicle minus the outstanding loan amount) to receive a lump sum payment. This option allows you to borrow additional funds by refinancing your car loan.
Here’s how it works: You pay off your existing car loan, obtain a new loan for an amount exceeding your outstanding balance, and receive the surplus amount in cash. The sum you receive depends on the equity you have in your car. You can then utilize this surplus, obtained through cash-out refinancing, for various expenses, bills, and other financial commitments.
Benefits of Cash-Out Car Refinancing
ACCESS TO MUCH-NEEDED CASH
In case of an emergency or immediate financial obligations, such as time-sensitive bills or high-interest debts, particularly credit card debts, cash-out car refinancing offers a solution to obtain necessary funds without turning to other high-interest personal loans.
LOWER INTEREST RATE
If you're currently burdened with a high interest rate, you may be eligible for a more favorable rate. Depending on the cash amount you're withdrawing and your total car loan, securing a lower rate could effectively decrease the overall expense of the loan.
LOAN TERM EXTENSION
Subject to specific eligibility criteria, extending your loan duration beyond the existing repayment term may lead to a potential reduction in your monthly payments.
How Much Cash Can You Get From Car Refinancing?
The cash you can receive is based on your car’s value and eligibility. For example, if your car is worth $30,000 and you owe $18,000, you may refinance for $30,000 and receive $12,000 in cash. Eligible applicants may also qualify for a lower interest rate and extended loan term to reduce monthly payments.
