You’re in the market for a new/used vehicle and an auto loan. You conduct extensive research online to learn what you can get for your trade in, review dealer inventory, current auto promotions, color/features that you want – the list goes on and on. You think about what payment makes you the most comfortable with for your auto loan (incidentally, NEVER start out your conversation with the salesperson at the dealer by revealing what payment you want… I’m sure they’d love to extend the term from 60 months to 72 months to get you there) and you make your way to the dealer, get what you want, and drive off. Now what?
You’ve signed the papers but that doesn’t mean that you shouldn’t give a second thought to your auto loan. What is your interest rate? What is the auto loan term? Refinancing your auto could save you money and, it is typically a relatively quick and painless process.
Interest rates are historically low. Just check online to see what they were a couple of years ago and what they are today. When you purchased the vehicle, how was your credit? Poor, Average, Great? Has anything changed? If it’s improved you could secure a better rate. And, even if it was great when you first secured your auto loan, the rates now could even be better. Remember, you can access your credit report for free each year at www.annualcreditreport.com.
Again, refinancing you auto loan depends on a number of factors including is there value in the vehicle or are you “upside down” (i.e. vehicle is worth less than the auto loan balance), age of the vehicle, repayment terms and possibly a number of other factors. Check out this article regarding the five best situations for an auto refinance on your car loan from bankrate.com. The article provides some quick tips and states that “finding a lender that refinances is the easiest step in the process and goes on to state that credit unions have money to lend.” So, I say do your research, utilize the online auto loan calculators at riverset.com to see how much you could save and if refinancing is the best option for you, take it. Even if it is only a savings of $20 a month, it could mean saving hundreds or thousands over the life of the auto loan.
Riverset Credit Union is open to those in Allegheny, Beaver and Butler Counties. To view our auto loan rates or to apply, visit us at riverset.com.