12.22.20

The best time to refinance a car

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Consumers auto loans

If it’s time to hit the highway in a new set of wheels, an auto loan from Consumers can help you reach your destination!

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Four things that indicate when it’s a good time to refinance an auto loan.

While there’s a lot of conversation about refinancing a home, fewer people know the ins and outs of refinancing auto loans. Here’s what you need to know to decide if now is a good time to refinance your car loan.

Auto loan rates go down
If interest rates on car loans are lower than when you originally financed your vehicle, refinancing could reduce your monthly payment and save thousands over the life of the loan.

Your credit score has improved

If your credit score has recently gotten a boost, you might be eligible for better terms—including a lower interest rate—on an auto loan.

Check your credit score for free with Consumers’ Online Banking—learn how here. If it looks like you might be eligible for a better loan, use our car loan calculator to see how much you’d save with current rates.

You financed directly with a dealer

Dealers who offer their own financing typically have higher rates than credit unions and banks. Working directly with a lender like Consumers could save you money.

Monthly payments are straining your budget

If you’re having difficulty making monthly payments, refinancing your car loan with a longer term can reduce your monthly obligation. For example, you could change from a four-year loan to a six-year loan. If you go this route, be aware that extending the loan will likely result in paying more interest overall.

When not to refinance

While refinancing a car loan is often a good financial move, there are some times when it doesn’t make sense or simply won’t be possible.

  • your car loan is more than the car is worth
  • your existing loan has a prepayment penalty
  • the car is older with high mileage
  • your existing loan is close to being paid off 

Talk to us

If you’d like to refinance your auto loan or get more information, give us a call at 800-991-2121. We’re here to help you save money!

Consumers provides banking services for more than 100,000 members. If you have banking questions, call us at 800-991-2221. We make it easy to bank how you want, when you want.

All loans subject to approval. Rates, terms, and conditions are subject to change and may vary based on credit worthiness, qualifications, and collateral conditions. Federally insured by NCUA

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Consumers auto loans

If it’s time to hit the highway in a new set of wheels, an auto loan from Consumers can help you reach your destination!

Learn more

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