{"id":4356,"date":"2013-03-29T00:08:03","date_gmt":"2013-03-28T16:08:03","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=4356"},"modified":"2024-03-19T18:57:09","modified_gmt":"2024-03-19T10:57:09","slug":"refinance-car-loan","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/refinance-car-loan","title":{"rendered":"4 Things To Consider Before You Refinance Your Car Loan"},"content":{"rendered":"

<\/a><\/p>\n

There are many factors and benefits which may propel you to consider refinancing your car loan.<\/p>\n

You could be doing it to consolidate all your car debts, or to lengthen your loan period in order to ease your cash flow.<\/p>\n

Whatever your reasons may be, here are a few things you\u2019d want to consider if car loan refinancing is in your agenda this year.<\/p>\n

<\/span>1) You\u2019ll need time and effort to get the best package<\/strong><\/span><\/h2>\n

For many people, one of the key reasons in taking up a refinancing deal is usually to take advantage of better interest rates. If your existing car loan or hire purchase package was taken during a time when the rates were very high, you could potentially be paying less interest on your car loan by shifting to a more competitive refinancing package.<\/p>\n

However, the reality is that new car rates are generally more attractive than interest rates for used cars, so finding a refinancing deal that\u2019s way better than your existing car loan is easier said than done (though theoretically not impossible).<\/p>\n

Additionally, because rates for car loans vary from models to models and banks to banks (much more so than home loan), the act of shopping around and comparing interest rates for car refinancing deals could potentially be very time-consuming and tedious. To get the best deal, make sure you\u2019re well prepared to spend the time needed to make it happen.<\/p>\n

<\/span>2) You\u2019ll want to review your current loan documents<\/strong><\/span><\/h2>\n

Like any other refinancing endeavours, it is important that you review the documentations for your current car loan. You\u2019ll want to make sure that there isn\u2019t any prepayment penalty (i.e. refinancing a loan is technically prepaying for it); and if there is, you\u2019ll want to ascertain the penalty amount and the period to which the prepayment penalty applies.<\/p>\n

Say your prepayment penalty is 2% and the penalty period is 3 years, taking a refinancing package before the 3-year period would see you instantly coughing up an additional RM1,000 for a RM50,000 loan!<\/p>\n

<\/span>3) You\u2019ll want to make sure you understand the clauses of your refinancing deal<\/strong><\/span><\/h2>\n

As of all formal agreements, you\u2019ll want to go through all the fine prints stated in the documentations when you take up a refinancing deal. This is imperative because there may be hidden charges, unfavourable terms and other unforeseen clauses to cause a headache for you in the long run \u2013 such as a repayment penalty your refinancing officer may not have told you about.<\/p>\n

Additionally, you\u2019ll want to understand the Margin of Financing for your new package. Some refinancing packages extend solely to take over 100% of your existing loan, whilst other packages provide loan PLUS cash out of up to 90% of the current market value of your car.<\/p>\n

To put it simply, taking a refinancing deal isn\u2019t just a simple matter of signing on a form. It involves both time and effort \u2013 which you\u2019ll need plenty of to understand your refinancing agreement from scratch.<\/p>\n

<\/span>4) You\u2019ll need to know what you\u2019re getting yourself into from a financial standpoint<\/strong><\/span><\/h2>\n

One of the most common reasons to refinance a car loan is to free up more cash every month by extending the loan period. From a financial standpoint, that means getting yourself in debt for your car for that much longer, which inadvertently means you\u2019ll be paying more interest regardless of the rate of your refinancing deal.<\/p>\n

Though it is always nice to have extra cash every month, you may want to ask yourself if the extra money is necessary (eg. for your child\u2019s education) or if it is simply for indulgence purposes (eg. for fine-dining every weekend). After all, you really shouldn\u2019t be extending<\/strong> the time you\u2019ll be debt if you can help it.\u00a0 If anything else, you should be actively thinking of ways to shorten<\/strong> it!<\/p>\n

 <\/p>\n

<\/span>Love this article? You may also wish to find out how to calculate car loan interest and instalment<\/a> using nothing but a calculator.<\/strong><\/span><\/h3>\n

<\/span>Alternatively, refer to our car loan comparison table<\/a> to see the best rates offered by banks in Malaysia right now.<\/strong><\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"

There are many factors and benefits which may propel you to consider refinancing your car loan. You could be doing it to consolidate all your car debts, or to lengthen your loan period in order to ease your cash flow. Whatever your reasons may be, here are a few things you\u2019d want to consider if… View Article<\/a><\/p>\n","protected":false},"author":1,"featured_media":4359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[237,19],"tags":[],"class_list":["post-4356","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-autos","category-car-loan"],"acf":[],"yoast_head":"\n4 Things to Consider Before You Refinance Your Car Loan | iMoney<\/title>\n<meta name=\"description\" content=\"There are many factors and benefits which may propel you to consider refinancing your car loan.\u00a0 Here are a few things you\u2019d want to consider.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.imoney.my\/articles\/refinance-car-loan\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"4 Things to Consider Before You Refinance Your Car Loan | iMoney\" \/>\n<meta property=\"og:description\" content=\"There are many factors and benefits which may propel you to consider refinancing your car loan.\u00a0 Here are a few things you\u2019d want to consider.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.imoney.my\/articles\/refinance-car-loan\" \/>\n<meta property=\"og:site_name\" content=\"iMoney Malaysia\" \/>\n<meta property=\"article:published_time\" content=\"2013-03-28T16:08:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-19T10:57:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2013\/03\/Car-loan-refinancing-considerations.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"399\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"iMoney Editorial\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"iMoney Editorial\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.imoney.my\/articles\/refinance-car-loan\",\"url\":\"https:\/\/www.imoney.my\/articles\/refinance-car-loan\",\"name\":\"4 Things to Consider Before You Refinance Your Car Loan | iMoney\",\"isPartOf\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/refinance-car-loan#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/refinance-car-loan#primaryimage\"},\"thumbnailUrl\":\"\/articles\/wp-content\/uploads\/2013\/03\/Car-loan-refinancing-considerations.jpg\",\"datePublished\":\"2013-03-28T16:08:03+00:00\",\"dateModified\":\"2024-03-19T10:57:09+00:00\",\"author\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/2dc429bac9840e75ad08ab242c57dcbb\"},\"description\":\"There are many factors and benefits which may propel you to consider refinancing your car loan.\u00a0 Here are a few things you\u2019d want to consider.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/refinance-car-loan#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.imoney.my\/articles\/refinance-car-loan\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.imoney.my\/articles\/refinance-car-loan#primaryimage\",\"url\":\"\/articles\/wp-content\/uploads\/2013\/03\/Car-loan-refinancing-considerations.jpg\",\"contentUrl\":\"\/articles\/wp-content\/uploads\/2013\/03\/Car-loan-refinancing-considerations.jpg\",\"width\":600,\"height\":399,\"caption\":\"4 Things to Consider Before You Refinance Your Car Loan\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.imoney.my\/articles\/refinance-car-loan#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.imoney.my\/articles\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Autos\",\"item\":\"https:\/\/www.imoney.my\/articles\/category\/autos\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Car Loan\",\"item\":\"https:\/\/www.imoney.my\/articles\/category\/autos\/car-loan\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"4 Things To Consider Before You Refinance Your Car Loan\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.imoney.my\/articles\/#website\",\"url\":\"https:\/\/www.imoney.my\/articles\/\",\"name\":\"iMoney Malaysia\",\"description\":\"Everything you need to know about improving your personal finances.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.imoney.my\/articles\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/2dc429bac9840e75ad08ab242c57dcbb\",\"name\":\"iMoney Editorial\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/4268d61be86ba47b656e314b503a5c2f?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/4268d61be86ba47b656e314b503a5c2f?s=96&d=mm&r=g\",\"caption\":\"iMoney Editorial\"},\"description\":\"iMoney Editorial Team is composed of 4 writers with wide-ranging interests and areas of expertise. Their primary responsibility is to write financial-related articles to share and educate Malaysians on how to save, make and grow their money.\",\"sameAs\":[\"http:\/\/www.imoney.my\"],\"url\":\"https:\/\/www.imoney.my\/articles\/author\/chinglee\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"4 Things to Consider Before You Refinance Your Car Loan | iMoney","description":"There are many factors and benefits which may propel you to consider refinancing your car loan.\u00a0 Here are a few things you\u2019d want to consider.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.imoney.my\/articles\/refinance-car-loan","og_locale":"en_US","og_type":"article","og_title":"4 Things to Consider Before You Refinance Your Car Loan | iMoney","og_description":"There are many factors and benefits which may propel you to consider refinancing your car loan.\u00a0 Here are a few things you\u2019d want to consider.","og_url":"https:\/\/www.imoney.my\/articles\/refinance-car-loan","og_site_name":"iMoney Malaysia","article_published_time":"2013-03-28T16:08:03+00:00","article_modified_time":"2024-03-19T10:57:09+00:00","og_image":[{"width":600,"height":399,"url":"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2013\/03\/Car-loan-refinancing-considerations.jpg","type":"image\/jpeg"}],"author":"iMoney Editorial","twitter_card":"summary_large_image","twitter_misc":{"Written by":"iMoney Editorial","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.imoney.my\/articles\/refinance-car-loan","url":"https:\/\/www.imoney.my\/articles\/refinance-car-loan","name":"4 Things to Consider Before You Refinance Your Car Loan | iMoney","isPartOf":{"@id":"https:\/\/www.imoney.my\/articles\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.imoney.my\/articles\/refinance-car-loan#primaryimage"},"image":{"@id":"https:\/\/www.imoney.my\/articles\/refinance-car-loan#primaryimage"},"thumbnailUrl":"\/articles\/wp-content\/uploads\/2013\/03\/Car-loan-refinancing-considerations.jpg","datePublished":"2013-03-28T16:08:03+00:00","dateModified":"2024-03-19T10:57:09+00:00","author":{"@id":"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/2dc429bac9840e75ad08ab242c57dcbb"},"description":"There are many factors and benefits which may propel you to consider refinancing your car loan.\u00a0 Here are a few things you\u2019d want to consider.","breadcrumb":{"@id":"https:\/\/www.imoney.my\/articles\/refinance-car-loan#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.imoney.my\/articles\/refinance-car-loan"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.imoney.my\/articles\/refinance-car-loan#primaryimage","url":"\/articles\/wp-content\/uploads\/2013\/03\/Car-loan-refinancing-considerations.jpg","contentUrl":"\/articles\/wp-content\/uploads\/2013\/03\/Car-loan-refinancing-considerations.jpg","width":600,"height":399,"caption":"4 Things to Consider Before You Refinance Your Car Loan"},{"@type":"BreadcrumbList","@id":"https:\/\/www.imoney.my\/articles\/refinance-car-loan#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.imoney.my\/articles\/"},{"@type":"ListItem","position":2,"name":"Autos","item":"https:\/\/www.imoney.my\/articles\/category\/autos"},{"@type":"ListItem","position":3,"name":"Car Loan","item":"https:\/\/www.imoney.my\/articles\/category\/autos\/car-loan"},{"@type":"ListItem","position":4,"name":"4 Things To Consider Before You Refinance Your Car Loan"}]},{"@type":"WebSite","@id":"https:\/\/www.imoney.my\/articles\/#website","url":"https:\/\/www.imoney.my\/articles\/","name":"iMoney Malaysia","description":"Everything you need to know about improving your personal finances.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.imoney.my\/articles\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/2dc429bac9840e75ad08ab242c57dcbb","name":"iMoney Editorial","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/4268d61be86ba47b656e314b503a5c2f?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4268d61be86ba47b656e314b503a5c2f?s=96&d=mm&r=g","caption":"iMoney Editorial"},"description":"iMoney Editorial Team is composed of 4 writers with wide-ranging interests and areas of expertise. Their primary responsibility is to write financial-related articles to share and educate Malaysians on how to save, make and grow their money.","sameAs":["http:\/\/www.imoney.my"],"url":"https:\/\/www.imoney.my\/articles\/author\/chinglee"}]}},"_links":{"self":[{"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/posts\/4356"}],"collection":[{"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/comments?post=4356"}],"version-history":[{"count":40,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/posts\/4356\/revisions"}],"predecessor-version":[{"id":62288,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/posts\/4356\/revisions\/62288"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/media\/4359"}],"wp:attachment":[{"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/media?parent=4356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/categories?post=4356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/tags?post=4356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}