If you're unhappy with your current auto loan, or if your circumstances have changed, it may be in your best interest to consider refinancing.
If you’re unhappy with your current auto loan, or if your circumstances have changed, it may be in your best interest to consider refinancing. If you’re struggling with a high interest rate or an expensive monthly payment, refinancing could be the answer to finding a better deal with a lower payment. In fact, research suggests that Americans could save more than $37 billion by refinancing their current auto loans. Read on for the top 5 reasons to say “Yes!” to refinancing.
If interest rates have dropped since you took out your current loan, or perhaps your credit rating has improved, you may be able to get a lower rate than with your existing loan. If you financed at the dealership and did not negotiate on the rate, you might not have gotten the best deal available. Shop around and consider checking with your local credit union or other financial institution where you already do business. Typically, credit unions have much lower rates than banks (this should link to our rates page). Many institutions, like Baton Rouge Telco, offer discounts of up to 0.50% for having an established relationship.
When that shiny, new car smell has faded, and you’re left with a high monthly payment, refinancing could help you lower your monthly cost. Refinancing for a longer term could help your short-term cash flow. However, be aware that while you could reduce your payments in the short term, you may end up paying more in interest over the life of the loan.
On the other hand, if you’re focused on paying off debts or you’re worried that your vehicle may not last as long as the loan term, refinancing can help you pay it off faster. Consider refinancing your car at a lower rate for a shorter loan term. This may keep your monthly payments the same, or even increase slightly; however, you’ll be able to pay off the vehicle faster.
If you financed at a dealership, you were likely offered additional policies to add to your loan such as GAP coverage or Mechanical Breakdown Protection. It’s easy to pass on these options when you’re focusing on the excitement of your new car. But now that you’ve had time to reflect, you may be wishing you added some of those protections. Refinancing is a great way to add these policies so you can have peace of mind.
Not all lenders are created equal. Whether it’s a hassle to make your payment, or when you just want to talk to a person when you have a question about your loan, there’s nothing worse than when you feel like you’re a number and not a person. When you refinance with a credit union, like Baton Rouge Telco, you will receive more personalized service. Consumers often love the easy online payment options, and you can walk into any local branch and talk to a human whenever you need help. And that human will probably greet you by name. Imagine that!
If you are considering refinancing your auto loan, don’t hesitate to contact us. We can go over all the rates, terms and options available to help you meet your individual goal. Just another way we have to say “Yes!”.
If you would like to cruise into lower payments check out our auto refinance program and start saving money today!