Why would anyone need a car to be refinanced? Does it mean people are truly buying cars and can't possible afford? Or are there genuine reason? Like being demoted and therefore earning less?
Quite a brutal statement to be fair.
Simply 2 scenarios
1 : financing of the balloon payment. If you have a residual that needs paying off either the car does not match the value to cover this short fall etc, you will need to refinance from a personal perspective or what most do, is purchase another car and let this residual ride at the existing bank assuming they allow it (which is not always the case)
2 ; require refinance or adjustments due to affordability. You would need to speak to the existing bank with your facility. But yes banks do it BUT DONT OFFER it as a product. Its a debt restructuring essentially. Your car has depreciated beyond book value and from a market perspective no longer holds the necessary collateral value to cover the debt. The debt in all likely will be come personal (similar to a personal loan) as it will be unsecured refinance.
Never buy a vehicle on residual or 30% balloon etc. Noting further that whilst none of us can anticipate life circumstance, most banks are open depending on the case to extend or adjust the payment, but completely refinancing it is a debt recovery process and not viewed lightly
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