We’re all looking for ways to save where we can. Refinancing your auto loan can be an appealing way to lower your auto loan costs. Now is a good time to re-evaluate your finances and find ways to save money. Given the current state of events, many lenders are offering great rates and specials on new auto loans (among other things). It’s the perfect time to see what’s available for you, and most importantly, what can save you money.
My neighbor said an auto refinance was a bad idea, is that true?
Can I save money on an auto loan refinance? What does it take to refinance an auto loan? Is it really beneficial for me?
There are many questions and things to consider but individual credit status is one of the most important deciding factors for getting an auto loan refinance. So to compare with someone else means you are assuming their credit status as your own.
According to Credit Karma, below are some things to consider when looking into easing your finances with an auto loan refinance:
What does an Auto Refinance do?
- Refinancing means you pay off your current auto loan with a brand new auto loan
- Based on your credit, it could immediately help free up some of your debt
- Extending your term means paying more interest, but with lower monthly payments, providing the instant financial relief
What YOU should do
- An auto refinance serves people differently and is beneficial when you need instant savings
- Find rates that are lower than your existing auto loan
- Be aware of your current credit score, any improvement means refinancing will cut your monthly payment
- Be aware of vehicle criteria lenders may have
- Know your term and what length works best for your budget
- A tighter budget means longer terms to pay your loan, but in an affordable manner
- Know how much you owe on your auto loan and your vehicle’s current market value
- Be aware of any refinancing fees
- Understand if your auto loan has any penalties for paying it off early
- Make sure to have all necessary legal documents readily available
- Be aware of both hard and soft inquiries when browsing around
- If you must get multiple hard inquiries done, aim to do so in a span of 14 days. This may only count as a single hard inquiry and not as multiple.
As a member of SafeAmerica Credit Union, you can refinance your auto loan and take advantage of:
- Great Rates
- Flexible terms
- No payments for 60 days
Apply online below and try our payment calculators to see if an auto loan refinance can benefit you.