Auto Loan Refinancing

Lower Your Rate and Keep More Money in Your Pocket

We’ll beat your current rate by 1% and give you 90 days with no payments.*

Your car payment is just one of those monthly bills you’ve gotten used to paying. But here’s the thing, you might be paying way more than you need to. If you signed your auto loan a few years ago, financed at the dealership, or if your credit score has improved since then, the interest rate you’re stuck with could be costing you thousands of dollars over the life of your auto loan. Plus, having a lower monthly payment means more breathing room in your budget. That’s where auto loan refinancing comes in.

What Is Auto Loan Refinancing?

Auto loan refinancing is straightforward. You take out a new loan to pay off your existing car loan. When you refinance your auto loan, you’re essentially starting fresh with new terms, a new lender, and ideally, a lower rate that saves you money every single month.

Think of it this way. When you first bought your car, your credit might not have been where it is today. Or maybe interest rates have dropped since you signed your original paperwork. Refinancing lets you take advantage of those changes. Instead of being locked into payments that don’t reflect your current financial situation, you get to reset the terms to work better for you. The process is simpler than you might think. You apply for a new loan, we review your application, we pay off your old loan in full, and you start making payments on the new, better loan. No hassle, and you keep driving your car the whole time.

Why Refinance Your Auto Loan with Choice One?

Choice One Community Credit Union has been serving the Northeastern Pennsylvania community for decades. With five branches throughout the region, we know our members personally, and we are committed to helping you keep more of your hard-earned money. Here is what sets us apart when you refinance your auto loan with us:

• Lower interest rates: Our competitive rates are designed to save you real money. When you refinance a car loan with Choice One, you are getting member-focused pricing.
• Lower monthly payments: Reduce your payment by choosing a better rate, extending your term, or both. More money in your pocket each month adds up.
• No prepayment penalties: Pay off your loan early without worrying about extra fees.
• Flexible terms: We work with you to find payment terms that fit your budget and goals, whether that is a shorter payoff period or a more comfortable monthly payment.
• Refinance from any lender: It does not matter where your original loan came from. We will refinance auto loans from banks, dealerships, other credit unions, or any other lender. The only exception is current Choice One auto loans.
• Local service you can trust: When you refinance your auto loan with a community credit union, you are working with people who live and work in NEPA. We understand your community, and we are invested in your success.

When Should You Refinance Your Car Loan?

You do not have to wait for any specific reason to explore auto refinance rates. But there are several situations where refinancing makes especially good sense.

1. If interest rates have dropped since you took out your original loan, refinancing puts you in position to benefit. A rate drop of just one or two percent can save you hundreds or even thousands over the remaining life of your loan.
2. When your credit score has improved, lenders see you as a lower risk. That better credit profile means you qualify for better rates. If you had credit challenges when you originally financed your car, refinancing now could be a game-changer.
3. Maybe your car dealer gave you a less-than-great rate to move the deal along quickly. Dealership rates are often inflated, and there is no reason to live with that cost for the next five years. Refinancing away from that dealer rate is one of the smartest moves you can make.
4. Or perhaps your current monthly payment is just too high. Even if rates have not dropped dramatically, refinancing into a longer term can lower your payment to something that breathes easier in your budget. When you refinance your auto loan, you control the terms.

How Much Could You Save?

Here is a real-world example of what auto loan refinancing can do. Say you financed a $25,000 vehicle a year ago at 9.9 percent through the dealership with a 72-month loan. Your payment is around $462 per month, and you still have five years to go. If your credit has improved and you refinance your remaining balance at 4.9 percent for those same 60 months, your new payment drops to around $410. That is roughly $52 back in your pocket every month and more than $3,100 in total interest savings over the life of the loan. Same payoff timeline, thousands less out of your wallet.

Your numbers will depend on your rate, balance, and term, but even a modest rate reduction can add up to hundreds in real savings. Curious what refinancing could look like for you? Give us a call at (570) 823-7676 or stop by any branch, we will run your numbers in minutes.

***Example shown is a hypothetical illustration only and does not represent a current or guaranteed rate or term. APR = Annual Percentage Rate. Actual rates are based on creditworthiness, loan-to-value ratio, and term of loan. All loans subject to credit approval. Rates are subject to change without notice. Contact the credit union for current rates and terms.

How Auto Loan Refinancing Works

We have designed our refinancing process to be as simple and transparent as possible. Here is exactly what happens when you choose to refinance with Choice One:

Step 1: Apply. You start by filling out a refinancing application. We ask for basic information about you and your current loan. It takes just a few minutes, and you can apply online, over the phone, or in person at any of our five branches throughout Northeast Pennsylvania.

Step 2: Get Approved. We review your application quickly. Once we assess your creditworthiness and the details of your vehicle, we will present you with your new loan terms and interest rate.

Step 3: We Pay Off Your Old Loan. When you are ready, we handle the payoff. We contact your current lender, get the exact payoff amount, and send them the funds to clear your old loan completely. You do not have to do anything here.

Step 4: Start Your New Payments. You will begin making payments to Choice One on your new loan with your new rate. Your car title will be held by Choice One during the loan term, and you keep your car and keep driving it. No interruptions, no hassle.

What You Will Need to Apply

To make the application process as smooth as possible, have these items ready:

• Current loan information: Your loan number and the name of your current lender. If you have a recent statement, that is even better.
• Vehicle information: Your VIN, the year, make, and model of your car, and your mileage. We need to verify the vehicle details.
• Proof of income: A recent pay stub or tax return showing your income. This helps us confirm your ability to handle the new payment.
• Valid ID: A driver’s license or state-issued ID. We need this to confirm your identity.

Frequently Asked Questions About Auto Loan Refinancing

1. Will refinancing hurt my credit score? The refinancing process does involve a hard inquiry into your credit, which causes a small, temporary dip. But here is the bigger picture: as you make on-time payments on your new Choice One loan, your credit score typically recovers and often improves because you are demonstrating responsible borrowing behavior. The short-term inquiry is well worth the long-term benefits.
2. What if I still owe more than my car is worth? Being “upside down” on your loan does not automatically disqualify you. We can refinance cars with negative equity, though the terms depend on how far underwater you are and your overall creditworthiness. We will discuss your specific situation and let you know what is possible.
3. Is there a catch with no prepayment penalties? No catch at all. When you refinance with Choice One, you are never penalized for paying off your loan early or making extra payments. If your situation improves and you want to pay it off faster, go right ahead. We will not charge you a dime extra.
4. How long does the refinancing process take? From application to approval typically takes 24 hours or less. Once you are approved and ready to move forward, we handle the payoff and everything else. You could have your new loan in place within days.
5. Can I refinance with a co-signer? Absolutely. If you would like to refinance with a co-signer, we can do that. A co-signer with strong credit can sometimes help you qualify for even better rates.
6. Do I need to be a current Choice One member? You do not have to be. But you do have to be eligible for membership. Membership is open to persons who live, work, worship, attend school or have a business entity in Luzerne, Lackawanna or Wyoming Counties. Once you’re a member, your immediate family can join as well, regardless if they meet the above criteria or not.

Start Saving on Your Car Payment Today

If you are paying too much on your car loan, why wait? Auto loan refinancing is one of the most straightforward ways to put real money back in your pocket every month. Whether you want to lower your payment, pay off your car faster, or both, Choice One Community Credit Union is here to help.

Stop by one of our five convenient branches throughout Northeastern Pennsylvania, give us a call, or apply online today. We will walk you through the entire process and show you exactly how much you could save. Your auto refinance rates are waiting. Let us get you into a loan that actually works for you.