When interest rates are low like they are right now, it’s the perfect time to refinance to lower your monthly car loan payment. Auto loan refinancing is simply applying for a new auto loan to pay off your current loan. Many car owners looking to lower their monthly payment take advantage of auto loan refinancing as a great way to accomplish that goal.
The number one reason for refinancing an auto loan is to lower the monthly payment. This can be accomplished by securing a lower interest rate. Others want to shorten the term to pay off the loan faster and save on total interest paid.
When to refinance an auto loan
If you find a lower auto loan rate than your current rate, if rates have dropped significantly, or if your credit score has improved substantially, it may be a good time to refinance. You may be struggling with a high rate because you didn’t compare lenders when purchasing your vehicle or your credit score was low. Whatever the reason, it’s time to start shopping around for a better rate. Check the auto loan rates at Choice One Community Credit Union to see if we can beat your current rate. If you refinance soon, you can take advantage of a special “No Pay for 90 Days*” promotion at Choice One. You may be looking to lower you monthly payment and Choice One’s low interest auto loan refinancing might be just the ticket.
Run all the numbers when you are researching and comparing loans. Include any fees that will be charged by the new lender and any pre-payment penalty that may be part of your existing auto loan. Don’t get lazy. You need to shop around to find the best deal on refinance. A local credit union like Choice One is always a good bet when it comes to finding the most competitive rates and terms. They are not-for-profits focused on helping their members. As a result, credit unions typically have lower loan interest rates than most banks.
If you owe more on your loan than the vehicle is worth, the pre-payment penalties are significant, your vehicle is almost paid off, or your credit score or income has dropped significantly, it might not be the best time to refinance.
Refinancing your auto loan can be quick and easy
When comparing auto loans, look at the total cost of the loan, including fees, and all of the interest that you have to pay. There are several factors that can determine the amount you might save. This includes the interest rate, the term of the loan, the value of the vehicle, your credit score, and the total you want to borrow. Compare the quotes from get from lenders with your current loan. Once you’ve found a great deal, it’s time to jump on it.
Auto loan refinancing might be easier than you think. Once you’ve shopped around and found the best deal, you just need to gather all the documents your lender will need. This includes your personal identification, income, and information, as well as your current auto loan information and vehicle details. You’ll also need proof of auto insurance. Once you organize your paperwork, you’re ready to apply.
If you can afford it, consider shortening the term, since you’ll already be saving on the interest rate. This will save you even more, because you’ll pay less interest over the life of the loan. If you’re just focused on having extra money in your pockeet, you can keep your term the same and just enjoy the monthly savings that come with a lower interest rate. Complete your application and enjoy your savings.
Possible benefits of auto loan refinance
- Lower your monthly auto loan payment.
- Save by decreasing your interest rate and lower the total amount of interest rate paid on your loan.
- Lower your rate and your term and save by paying your loan off faster.
- Take advantage of a great incentive offered, such as Choice One’s “No Pay for 90 Days*”
Say yes to the peace of mind of refinancing your auto loan for a lower rate and lower monthly payment. Whether your goal is a lower payment, or you just want to lower the rate and pay your vehicle off faster, we can help. Learn more about auto loan refinancing or apply for refinancing at Choice One Community Credit Union.
*Finance charges will accrue during the auto loan 90 day no payment option.