Car owner? Check. Car loan? Check. Happy with your loan terms? Well ... let’s look into that. While you may be happy with your auto loan rate, refinancing can potentially save you a few bucks. And let’s face it, who wouldn’t want to save some money? You could potentially have a better auto loan that lowers your monthly payments, interest rate, or both.
What’s Good about Refinancing?
Let’s start by defining refinancing. Refinancing your auto loan means you’re replacing your current loan by taking out a new loan from a different lender. The current loan will be paid off by your new lender, and you’ll start making monthly payments on your loan with your new lender.
I may be biased, but if you’re considering refinancing, I think you should refinance with GOLD. Allow me to explain why.
Refinancing with GOLD can present you with significant savings opportunities that could have a positive impact on your overall financial picture. When you refinance with us, you can lower your rate, decrease your monthly payments, or better yet, both! Here’s what you need to know about refinancing and the ways it can save you money.
Reduce your interest rate: Our low rates are often lower than what’s offered by our competitors. Best part? GOLD is proud to provide the same excellent low rates on both new and used vehicles.
Decrease your monthly payment: Typically, when you refinance, and your interest rate goes down, your monthly payment decreases as well.
Extend your terms: Need more time to pay off your loan? By extending your terms, you could spread out your monthly payment over a longer loan period. While this is a nice option to decrease monthly payments, keep in mind that you’ll wind up paying more in interest over the life of the loan.
Pay off your loan sooner: Customize and schedule your payments to come out on a monthly basis, or make weekly or biweekly payments to get your loan paid off faster (no need to worry about prepayment penalties or fees at GOLD).
When to Consider Refinancing
There are a few instances where you may want to open the door to refinancing. Let’s break it down:
The loan is from the dealership. You were probably beaming with excitement that you’d soon have the keys to your brand-new or new-to-you car, so you may not have considered shopping around for other financing options. I totally get it—you just wanted to get home with your new whip. Car dealerships have decent loan rates, and it can often feel like more of a hassle to shop around for a loan, especially when you’ve got the numbers right in front of you at the dealer. While the numbers you initially agreed upon worked up to this point, you can still probably do better. And the way I see it is there’s no harm in at least checking out your options.
The loan is from another financial institution or lender. Did you know that the national average for vehicle loan rates varies from 3-10%? If you’ve got your loan from another bank, credit union, or lender, take a real hard look at what you’re paying and whether or not you’re comfortable with your rate. If it makes sense for you to refinance, our door’s always open and we’re happy to assist you with loan options that best meet your needs and budget.
Your credit score has improved. Have you checked your credit score recently? Chances are your score has improved since you first got your car and loan. With your newly increased credit score, you could qualify for a lower rate resulting in a lower monthly payment.
The interest rates are low. It’s smart to keep your eyes peeled on rates, especially because they tend to fluctuate frequently. If interest rates are low, it may be a good time to refinance. Look at the times we’re living in currently. Now is proving to be one of the best times to refinance because of the current low-rate environment.
Ready to Refinance?
Have I inspired you to consider refinancing your vehicle loan? Go take a look at your own rate and term on your current loan and compare it to GOLD’s current rates. Then we can chat and see what we can do to lower your rate, monthly payment, or both. Refinancing is available for cars, trucks, and motorcycles (and even boats and RVs!).
And while you’re at it, be sure to opt in for GAP Insurance and an extended warranty to better protect you from life’s “what-ifs.”
Need help talking through refinancing options? Give us a call at 484-223-4216.