How To Refinance A Mazda Car Loan

Whether you’re looking to buy a vehicle that’s built for economy, luxury, or performance, Mazda has it all. They have produced cars for almost 100 years and even provide Mazda finance through its car dealerships. 

If you’re looking to finance a Mazda car or refinance one to find better rates or terms, you have options. 

Is It Possible To Refinance A Mazda Auto Loan? 

Yes. If you meet the requirements, you can refinance your Mazda Financial Auto Loan in a few ways. You can refinance your loan by negotiating a new deal with your Mazda dealership, or by applying with a different financing source, such as a bank, credit union or alternative lender. 

However, it’s important to note that refinancing can come with certain penalty fees for breaking your loan contract early. So be sure to review your contract and ensure that refinancing will save you more money than the penalty fees.  

Can You Refinance With Mazda Financial Services Canada?

If you have excellent credit, you may be able to score a decent refinancing deal through Mazda Financial Services Canada (which is available at any Mazda dealership). Then again, it can be tough to qualify for the best loans if your finances aren’t in great shape. 

To improve your odds of landing a good deal, do these things prior to applying:

• Shop around and compare lenders (Mazda and third-party)
• Get pre-approved by multiple lenders to see what loans you could qualify for
• Show proof of these deals to your Mazda lender for extra negotiating power

What Mazda Finance Options Are Available In Canada?

Buying a new or pre-owned Mazda can be pricey for some drivers. Luckily, Mazda Financial Services offers two programs to make their cars more affordable:

Mazda Finance 

If you wish to buy your vehicle over time using a car loan, Mazda offers financing terms of 12 to 84 months (1 – 7 years). They also have consumer-friendly interest rates and flexible payment options. 

Each payment goes towards your principal and interest charges, which means each one you make increases your Mazda’s equity level as you gradually buy it. Plans also come with no kilometre or wear and tear charges.

Mazda Leasing

If you’d prefer to switch cars every few years, rather than committing to buying one, you can also apply for Mazda Leasing. This program lets you lease the latest Mazdas, with low monthly payments and adjustable terms of up to 60 months. You only need to pay the tax on your monthly lease amount, instead of your Mazda’s full purchase price.

Other things to know about Mazda Leasing:

• Mazda Owner Loyalty Program rewards are offered to drivers who are trading in their current Mazda or buying an additional Mazda (new or certified pre-owned) 
• When a lease ends, borrowers have three options:
  • Lease another new or CPO Mazda
  • Return the Mazda
  • Purchase the Mazda (lease-to-own)

Mazda Finance Contact Information 

There are several ways to get in touch with Mazda Financial Services Canada:

Mazda Finance: How To Get A Low-Interest Rate

Whether you want to finance your Mazda or refinance your Mazda, the ways to help you secure a low-interest rate are the same.

Here are some other things you can do to qualify for a lower interest rate on your Mazda Financial Auto Loan:

Increase Your Credit Score

A credit score between 660 – 900 generally means that you’ve been responsible with your debt payments. As such, lenders may see you as less risky and give you better rates. You can work on improving your credit score by paying your bills on time and keeping your debt-to-credit ratio low. 

Given that credit scores can play a role in the rate you’re provided, it’s best to check your credit score before applying.  

Compare Offers

Mazda Financial Services has lots of different options but may not be the best auto lender for you. Make sure to shop around, get pre-approved and compare loan conditions with multiple lenders. You could qualify for some appealing interest rates and terms with a bit of extra time, effort and negotiation.      

Apply With A Co-Signer

When you don’t have a great income or credit score, it’s tough to qualify for a low-interest rate. So, you may have more luck by finding someone with better financials to co-sign your loan. A cosigner can help lower the rate you get because they reduce the lender’s risks. As cosigner, they agree to take over your payments if you can’t afford them, which helps make you less risky to your lender. 

How To Lower The Monthly Payments On A Mazda Financial Auto Loan

A low-interest rate is key if you want to get smaller car loan payments. Another way of doing that is by taking advantage of Mazda’s many rebate programs, which include:

Mazda Military Program 

As a member, veteran or reservist of the Canadian Armed Forces. You and any family members in your household are eligible for a $600 discount on the purchase of a new Mazda. This program is only available for new Mazdas, Mazda Canada company cars, and dealer demonstrator cars. 

Owner Loyalty Program

If you already own a Mazda, you can get discounted rates or special offers by purchasing an additional new Mazda or trading in your current Mazda. This program can be applied to new or CPO vehicles (financed or leased with Mazda) and is also available to family members who live with you.    

Graduate Program

If you’re a Canadian resident and you graduate from an accredited Canadian college or university between April 30, 2021, and April 30, 2024, You’re eligible for an extra rebate on any new or CPO Mazda. That rebate is then used as a down payment and deducted from the car’s final sales price (after tax). Discounted amounts vary according to the model you choose.     

Mobility Program

This program is for drivers and passengers with physical disabilities. Earn up to $750 (including GST) to buy or install adaptive driving aids or mobility assistance equipment on your car. Any new, unused or CPO Mazda can qualify, as long as you provide the right requirements and documentation. 

Keep in mind that some of these programs can be combined for additional benefits.    

Mazda Finance: Is There A Grace Period For The Mazda Auto Loan?

If you’re more than 30 days late on an auto loan payment, Mazda Financial Canada might report the incident to Canada’s credit bureaus. Generally, this leads to a drop in your credit score and a negative mark appearing on your credit report for several years.   

What Happens When You Miss A Mazda Auto Loan Payment?

Here are some other things that can occur if you miss a payment with Mazda Financial: 

• Potential Effect On Credit – After 30 days, many lenders will report the payment as late. Which ultimately, could have a negative impact on your credit. The extent of the effect can vary from person to person.
• Late Fees – Mazda Financial will probably charge you a late penalty too (though it may be waived if it’s your first missed payment). Plus, interest will continue to generate on any unpaid principal, which can drive up the final cost of your loan. 
• Repossession – After you miss 2 or 3 payments, Mazda Financial may begin the legal process that’s necessary to repossess your vehicle. This will not only leave you without a car, but it can also result in additional fees, penalties, and credit damage.   

Mazda Financial’s Repossession Policy

Most auto lenders wait about 60 to 90 days after a missed payment before they’ll go through the trouble of repossessing your car. However, some bad credit lenders will start the process after a few days. The only way you can get your car back is to pay what you owe, then negotiate a different contract. Otherwise, they’ll auction it off. 

All that said, every lender has different policies and Mazda Financial may be a bit more lenient if you have a good explanation for missing payments. Be sure to contact Mazda Financial Services Canada the moment you think you’re in danger of going into default.   

How To Voluntarily Surrender A Mazda Car?

After your lender orders the repossession of your Mazda, the best thing to do is arrange a voluntary surrender. This way, you won’t ruin the relationship with your lender or have to deal with any towing fees or collection agencies. If you refuse, the lender could charge you additional penalties and have the car towed from your home or workplace.  

Additional Reading

How Soon Can You Refinance A Car Loan After Purchase?

Refinance Your Car Into Someone Else’s Name: Is It Possible

What Is A Cash-Out Refinance Car Loan?

Mazda Finance: Are You Looking To Buy?

If you’re in the market to refinance a Mazda car loan but are interested in other options. Loans Canada can help. We can match you with a new lender in your area.

Mazda Finance FAQs