How to Buy a Car: Step 5 - Maintaining & Refinancing Your Car

Awesome news! You’ve just bought your first car! Now let’s dive into what’s next: keeping it in great shape and exploring refinancing options down the line if needed. Regular maintenance and making smart financial decisions after your purchase are key to maximizing your car’s value and longevity. UMe’s here to help with any tools and tips you need as you cruise into this new chapter!

Keeping Your Car in Tip-Top Shape

Your car’s journey doesn’t end when you drive it off the lot — it’s just beginning. Routine maintenance helps avoid bigger issues down the road and keeps your car running smoothly. Here’s what you should keep on your radar:

  • Oil Changes: Regular oil changes are crucial to keeping your engine healthy. Check your car’s manual for the recommended schedule—usually every 5,000 to 7,500 miles.
  • Tire Care: Rotate your tires every 5,000 miles and check for wear. Proper tire maintenance improves gas mileage and can help U prevent accidents like blowouts. Remember to check your air pressure from time to time, because lack of air pressure will wear out your tires faster! 
  • Brake Checks: Squeaky brakes aren’t something to ignore. Get them checked regularly for safety.
  • Fluid Levels: Keep an eye on brake fluid, coolant, and transmission fluid. These are the lifeblood of your car.
  • Battery Health: Batteries typically last 3-5 years. Make sure yours is in good shape to avoid getting stuck with a dead battery.

Staying on top of these simple tasks can help you avoid bigger, more expensive repairs down the line. And hey, no one likes surprises when it comes to car issues, right?

Refinancing: When, Why, and How

After a few months or years of owning your car, you might start wondering if refinancing your loan is a good idea.
UMe Pro Tip: Refinancing could save U some serious cash!

When to Consider Refinancing

  • When Interest Rates Drop: If interest rates have gone down since you first got your loan, refinancing might lower your monthly payments.
  • When You’ve Improved Your Credit: If your credit score has improved since U bought your car, you might qualify for a better loan rate!
  • When You’re in a Better Financial Situation: If you’re making more money or have reduced your debt, refinancing can help you secure a more favorable loan.

How Refinancing Works

Refinancing means taking out a new loan to pay off your old one. The goal is to get better terms, like a lower interest rate, lower monthly payment, or shorter loan term.

  1. Check Your Current Loan: Before you refinance, review your current loan details — like your balance, interest rate, and remaining term.
  2. Shop Around: Compare refinancing offers from various lenders to find the best deal. UMe offers flexible refinancing options with competitive rates for members.
  3. Apply for Refinancing: Once you find a better offer, apply with your chosen lender. They’ll check your credit score, income, and payment history. At UMe, the application process is quick and easy. Our auto loan refinance application is totally online, so you can apply anytime and anywhere!
  4. Pay Off the Old Loan: Once approved, your new lender will pay off your original loan, and you’ll start making payments to them instead.

Refinancing with UMe

If you’ve financed your car with UMe, you’re in great shape! We offer refinancing options with flexible terms and competitive rates tailored to your financial needs. You can easily apply online or chat with one of our friendly reps to explore your options. Refinancing could help lower your payments or allow you to pay off your car faster!

Is Refinancing Right for U?

Refinancing isn’t for everyone. If your current loan has prepayment penalties or you’re close to paying it off, it might not be worth it. FYI: At UMe, we don’t have any prepayment penalties!

It’s good to know that extending your loan term could lead to paying more interest over time, even with a lower rate. So, spend some time crunching those numbers and see if it can be right for U and your financial goals. We can help U with that, because we really do want what’s best for you and your financial situation.

Don’t Forget About Insurance

As your car ages, it’s smart to review your auto insurance coverage. You might not need the same level of protection as when it was brand new. Check your policy every year to see if you can find a better deal or if your coverage still meets your needs.

Final Thoughts

Owning a car in Burbank, nestled in the heart of Southern California, is an adventure! Whether you’re cruising down Magnolia Park or taking the 134 or 5 Freeways, it’s a responsibility that can be enjoyable. With regular maintenance, smart refinancing choices, and the right insurance, you can keep your car (and your finances) running smoothly. Plus, UMe is here to support you at every step, from financing your first car to refinancing and beyond. Taking care of your ride means it’ll take care of you for years to come!