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Auto loan refinancing for lower payments

Are you currently struggling with a high auto loan rate? Auto loan refinancing might be an effective way to lower your monthly payment. Refinancing may provide you with the opportunity to save money without even changing your spending habits. You can also lower your term to save even more on interest over the life of the loan. When you refinance, the goal is to borrow the amount you currently owe on the vehicle at a rate that is lower than your existing rate. This may help lower your monthly payment, as well as the amount of interest you will pay over the life of the loan.

Benchmark Federal Credit Union Offers Competitive Auto Loan Rates

When searching for a low-interest rate for auto loan refinancing, be sure to look at Benchmark FCU. The credit union offers competitive rates as low as 2.99% APR*. Benchmark FCU auto loans and auto refinance not only provides borrowers with low rates but also flexible terms and up to 125% financing for qualified borrowers.

Auto Loan Payment Comparison

(As per the Investopedia auto loan calculator)

Loan Amt.       APR                 Term               Payment          Total Interest

$35,000           5%                   60 mths.          $660.49           $4,629.59

$35,000           2.99%              60 mths.          $628.75           $2,724.92

With savings like the example above, not only is the borrower benefiting from a lower monthly payment, but also significant savings in total interest paid as well.

Auto refi interest rates 

The interest you pay on an auto loan can be very costly depending on the rate. You may have found that dealer financing does not always get you the best rate. When looking to lower your rate, it’s important to shop around and include your local credit union in your search. Why is this important? As mentioned above, if the interest rate available that you qualify for today is significantly lower than your current rate, auto loan refinancing can provide big savings. If you’re focused on paying the lowest amount of interest possible, you may want to lower your loan term to save even more.

4 Steps to auto loan refinancing

  1. Shop lenders for a better rate or overall auto loan deal. Financing or refinancing your vehicle with Benchmark FCU can help you save.
  2. Use an auto loan calculator to compare rates and see the savings. Be sure to take into consideration any fees or hidden costs, as well as prepayment fees. Determine the term that best fits your needs and budget.
  3. Collect your necessary documentation/information. This includes current loan information, including the payoff amount. You will also need to gather your personal information and identification, as well as proof of income. Finally, you will need your vehicle information, including the vehicle identification number of your vehicle and proof of insurance.
  4. Apply for auto loan refinancing. Many lenders, including Benchmark FCU, will allow you to conveniently apply right online.

Refinance today

Not sure if it’s too soon to refinance? There aren’t specific rules about how soon you can refinance after taking out an initial loan to purchase a vehicle. Speak to your credit union auto loan representative to learn more. Refinancing may be a great way to find an auto loan that better meets your needs. By taking the time to do your research, you might find a better rate and term to fit your budget, improve your cash flow, and save you interest over the life of your loan. It may also help you pay down your debt faster. Finally, If you have an improved credit score since you first took out our auto loan, you may qualify for a better interest rate.

 

*APR = Annual Percentage Rate.  Rates are subject to change, are based on an individual’s credit history, & includes a .25% discount for repayment via Payroll Deduction or Automatic Transfer from a Benchmark Account.

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