What Is Auto Refinancing and Is It Right for You?
Refinancing can be a smart way to lower your rate, save money and pay off your auto loan sooner.
There are many ways to boost your budget and give your wallet a break – cutting cable, buying in bulk, and shopping the sales are all top of mind. But have you considered refinancing your vehicle?
Depending on your situation, refinancing could offer you big savings. In fact, we’ve found that people who refinance with UW Credit Union save an average of $2,883 over the lives of their loans.*
So, what exactly is refinancing?
“Refinancing” is the technical term for the process of replacing your existing loan with a new loan. Some common reasons you might refinance an auto loan are:
- To lower your interest rate.
You may qualify for a lower interest rate than you originally received – especially if your financial situation has improved since you first got your loan.
- To lower your monthly payments.
By extending the term of your loan, you can dramatically lower your payments to free up cash each month. You’ll end up paying more interest over time, but it could be worth it if you need extra breathing room in your budget.
- To pay off your loan quicker.
With a lower interest rate, you may find you’re able to put more money toward your loan and pay it off sooner, which has the added bonus of helping you save on interest payments.
The steps for refinancing an existing auto loan from another lender at UW Credit Union are simple:
STEP 1: Collect your information. You’ll need your VIN (Vehicle Identification Number) and loan details available, including the amount left on the loan and the name of your lender.
STEP 2: Apply to refinance your loan. You can apply online, at any branch or over the phone.
STEP 3: Complete your application. You’ll sign online to finalize your loan. Once finalized, UW Credit Union will pay off your old loan and establish your new loan with us.
STEP 4: Make worry-free payments. Use Web Branch to set up recurring payments from your checking account toward your new auto loan.