It’s fair to assume that most of us don’t look forward to dishing out monthly car payments as we continuously pay down loans that never seem to end. But are you paying too much? If so, it might be time for you to consider refinancing that auto loan with an option that is more suitable to your needs.
In the following blog, we have outlined a few factors that might indicate when it’s the right time to think about refinancing. Review these factors and move towards reducing those pesky monthly payments and save some money!
Improved Financial Standing
It’s entirely possible that since you received your original loan that you may have an improved financial standing that could result in you acquiring a more favorable loan. If your credit score has improved you can be eligible for an improved monthly payment. Just to illustrate, refinancing $15,000 from a 7% rate to a 5% rate when making a monthly payment of a couple of hundred dollars would save you around $800 in interest.1
Review your credit score information and if you have noticed improvement since your original loan was issued, it might be time to consider refinancing.
Lower Interest Rates
It’s always important to pay attention to interest rates when considering refinancing. If rates have dropped since the time of the original loan, you should look into the possibility of refinancing your loan. Even a minor dip in the interest rate can result in more money in your pocket. Closely monitoring these trends can prove profitable over the life of your loan.
Dissatisfaction with Original Loan
This factor can be a bit vague, but if for any reason you have been displeased with the original loan you received it may not hurt to browse around for a better offer. It may be that you’ve had some disagreements with the original lender or that you feel you didn’t receive the most beneficial offer the first time around. If any of this is the case, it doesn’t hurt to keep your options open to better loan offers.
So what do you think? Is it time for you to consider refinancing your auto loan? If you have any questions about refinancing, feel free to stop in and speak with any CES Credit Union associate for more assistance! We’d love to help you reduce your monthly payments!
*All loans subject to approval based upon creditworthiness, qualifications and collateral conditions.
Sources
1 - https://www.lendingtree.com/auto/refinance/the-best-and-worst-time-to-refinance-your-auto-loan/