Empower Blog

June 06, 2022

Reasons to Refinance Your Auto Loan

We get it. With interest rates and the price of gas going up, we’re all trying to find ways to save some money. If you currently have a ride you love, but an interest rate you don’t, here are a few reasons you should consider refinancing your auto loan:

Lower Monthly Payment

If you feel that your monthly payments are too high, you should look at different refinancing options that could help you lower that expense. Refinancing your auto loan simply means that you are paying off your current car loan with a new one. 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. 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 but could save you money in the short run by lowering your monthly payment. Before making a decision, it is important to speak with an advisor to make the best decision for your specific situation.

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 of $30,000 with a remaining term of 60 months and a 7% interest rate would mean a monthly payment of $594. If you were to refinance this loan to a lower rate, say 4%, you could lower that monthly payment to $552, while also saving $2,492 in interest over the remaining 60-month term1. Try this handy auto loan refinance calculator to see how much you could save.

Auto Refinance Example

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. 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
  • Estimated Vehicle Value

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 Payout2. Refinancing your loan with us gives you another opportunity to increase your Profit Payout. This year we gave back a record-breaking $9 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 filled out 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. At CommunityAmerica, it is our goal to provide our members with the tools and resources needed to thrive and achieve financial peace of mind. 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 this or any of our other great products and services.
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About the Author
laura jones of communityamerica credit union
Laura Jones

Regional Branch Market Director

Laura Jones is a Regional Branch Market Director and has been with CommunityAmerica helping members achieve their financial goals since 2003. She has a passion for helping others achieve financial stability by encouraging smart money management decisions and setting financial goals.