Top Reasons to Refinance Your Auto Loan

There’s no way around it – if you live in this part of the country, a car is a necessity. Car payments can take up a large part of your budget. If you currently have a ride you love, but an interest rate or monthly payment you don’t, here are a few reasons you should consider refinancing your auto loan. Refinancing your auto loan means that you are paying off your current car loan with a new one that has better terms that work in your favor.

 

Here are a few reasons you should reconsider refinancing your auto loan:

Lower Monthly Payment

If you feel that your monthly payments are too high, look at different refinancing options that could help you lower that expense. Depending on factors like your credit score and payment history, you may have different options when refinancing. The hope is that a refinance will bring you a lower interest rate, saving you money over the life of your loan. This is especially true if your credit score has improved. When refinancing, you also have the option to lengthen the term of your loan, which will extend how long you are paying on the loan. Although a longer term doesn’t guarantee to save you money over the course of the loan it can make your monthly payment more manageable.

Save on Interest

A lower rate on your auto loan could allow you to save money not only on your monthly payment, but also on the total amount of interest you will pay over the life of the loan. For example, an auto loan balance with a new lower interest rate could benefit from a lower monthly payment AND save interest paid over time. And if the interest rate is higher than what you currently have? If you can swing your lower current rate, then keep it.

 

Try this auto loan refinance calculator to see how much you could save. Before deciding, it is important to speak with a loan expert to make the best decision for your specific situation.

Quick and Easy Process

Applying to refinance your auto loan with CommunityAmerica is fast and easy. We make the process hassle-free, allowing you to complete your application in full online, by phone or in a branch. To help things go even quicker, here are a few things you should have on hand when you start your application(s):

• Vehicle Identification Number (VIN)
• Vehicle’s Mileage
• Current Loan Information

Bonus – Increased Profit Payout

As a not-for-profit credit union, we return our profit to those who bank with us in many ways—like better rates, lower fees, and our exclusive Profit Payout*. Refinancing your loan with us gives you another opportunity to increase your Profit Payout. In 2023, we gave back a record-breaking $9.5 million to our members. We want to reward you for making us your financial go-to. That’s why the more products and services you have with us, the bigger your Profit Payout potential could be.

 

Your auto loan application can be completed online, but if you have any questions or would like to talk to someone about the specifics of your situation, know that we are always here to help. You can give us a call at 913.905.7000 or visit us at any of our convenient branch locations if you have questions about auto refinancing or any of our other great products and services.

 

All loans subject to approval.