4 Reasons to Refinance Your Auto Today
Many people think moving their auto loan from one place to another is too big of a hassle. Believe us; it’s not. All you have to do is start your application online, in person, or by starting a video banking call. One of our team members will start the application and once approved, they will submit payment to buy out the auto from your other financial provider, who will, in turn, send R1CU the title to hold until your debt has been paid.
It’s so simple! However, the next question you might have is WHY should you refi? Here are 4 reasons why a refinance could help you.
#1. Lower your interest rate
Right now, auto loan APR is historically low. So, if you had gotten your auto loan from someplace else a few days ago or even years ago, you are missing out big time. Dealerships, in general, will make you feel as though they are your only option for financing, but guess what? They are not, and the interest charged is outrageous. You might not think 10% vs. 5% is that big of a deal. But for a loan of $22,000 over 60 months is a difference of $50 a month and almost $3,000 for the life of the loan!
#2. Change the term of the loan
First off, a loan term is the period of time you have to pay off the loan. By lowering the term, someone can pay off their debt as quickly as possible. This is typically done when your current loan agreement requires a fee when paid off early.
Extending the term takes longer to pay off, but it can lower the monthly payment.
#3. Save on additional products
GAP, Dent Guard, and Vehicle Service Contract (formally known as an extended warranty) can add thousands to your loan. This price might seem like a fee you have to “eat” to protect your investment, but R1CU has a secret for you. The cost of these products varies from place to place. Meaning, you’re not stuck with what you got the first time you buy, especially if you refinance your auto before a specific period; you can typically get a full or a percentage refund on those products.
Not only could you save with our super-low pricing of these add-ons, but we also offer Debt Protection with Life Plus to help out when the unexpected happens.
#4. Lower monthly payment
This one needs no in-depth explanation. Do you need to free up more cash monthly? Whatever reason you need cash, this is a great option to do so.
Have we talked you into it? No? How about no application fees? Or what about if you get your auto loan during November 1 – December 31 2021 with our 90 days of no payment, you will have ZERO payments until 2022? Then, with all the extra cash you can be saving, you can put that money towards an end-of-year or holiday expense you might have.
Ready to go? Our teams are always here to help; let us see what we can do to make your loan work better in your favor. So start your application today by visiting us online, in person, or by starting a video banking call.
No Payments Until 2022 Refinance Auto
APR=Annual Percentage Rate. Rates, terms and conditions are subject to change and may vary based on credit worthiness, qualifications and collateral conditions. All loans subject to approval. Offer applies to consumer loans only; commercial loans do not qualify. Interest accrues during the no payment period. Payment example: Estimated monthly payment of $20.90 per $1,000 borrowed at 9.29% APR for 60 months. Restrictions may apply; see credit union for details. Cannot be substituted or combined with any other credit union offers. Offer excludes internally refinanced auto loans, auto balloons, and auto collateral. Lenders protection loans are not eligible for the 90 days no pay.
