New data shows that one out of every five new car buyers has an auto loan payment exceeding $1,000 per month. Another shocking statistic shows that the average amount financed for a new vehicle is $42,388. That’s $10,000 more than the average cost from 2019. With such high numbers, it’s more important than ever to consider where to get an auto loan and make sure you’re not overpaying.
This rise in costs can be attributed to consumers opting for longer repayment terms (think 84 months), which make up 22.4 percent of new vehicle financing. Longer refinancing terms usually lead to higher rates and more interest paid over the life of a loan.
If you’re currently paying off a car loan and feeling stuck with high interest rates or unmanageable monthly payments, refinancing might be a smart move. And when it comes to refinancing, credit unions are one of the best places to turn. Here’s why refinancing your auto loan with a credit union could be a game-changer for your wallet and your peace of mind.
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Lower interest rates
One of the biggest reasons to refinance your auto loan with a credit union (like Arsenal) is the potential for a significantly lower interest rate. Credit unions are not-for-profit institutions, which means our goal isn’t to maximize shareholder profits—it’s to serve you, our members. This typically results in lower interest rates compared to banks or dealership financing.
Let’s say you originally financed your car at a 7 percent interest rate. If you refinance with a credit union and qualify for a 4 percent rate, that difference could save you hundreds or even thousands of dollars over the life of your loan.
If you signed your loan agreement with the main goal of just getting into your vehicle, now could be a great time to revisit the interest rate. See if we can offer you a lower one by visiting the link below.
View current auto loan rates
Where to get an auto loan with flexible terms?
Another major benefit of refinancing an auto loan at a credit union is flexibility. Unlike large banks, credit unions often offer more personalized service and are more willing to work with you to create terms that fit your budget and goals. Whether you want to extend your loan term to lower your monthly payments or shorten it to pay off your car faster, a credit union can help craft a refinance plan that works for your situation.
Additionally, credit unions often offer refinancing for older vehicles or vehicles with higher mileage. Many traditional lenders shy away from this practice. If you’re not sure where to get an auto loan or how to refinance a vehicle, speak with one of our refinancing experts today.
Contact a refinance specialist
Lower fees and more support
Credit unions are known for charging fewer fees compared to big banks. You pay no prepayment penalties, loan application fees or hidden processing charges when refinancing your auto loan. If you’re wondering where to get an auto loan, a credit union like Arsenal is a smart place to start.
Even more valuable is the customer service. As member-owned institutions, credit unions tend to prioritize member satisfaction and community involvement. You’re more than just a number, you’re a valued part of our organization. If you ever have questions about your loan, need to adjust your payment schedule or run into financial difficulties, you’re more likely to get the personalized help you need from a credit union than from a large financial institution.
In fact, you can contact us right now using the live chat button in the bottom-right corner of your screen if you have any questions about refinancing.
A focus on your financial health
Refinancing your auto loan isn’t just about lowering your interest rate. It’s also an opportunity to improve your overall financial health. A better loan term can reduce your monthly payments, giving you more breathing room in your budget. That extra cash can go toward building an emergency fund, paying off credit card debt or reducing financial stress.
Plus, making consistent, on-time payments with your new, manageable loan can improve your credit score over time. Learn more about how making your loan payments on time can help improve your financial health.
Is it time to refinance?
If you’re paying too much money each month on your loan, it’s at least worth it to look into a refinancing option. You can see first-hand how much we’ve saved members who switched to us from other lenders. If you’re ready to talk to us about refinancing, fill out this quick form and we’ll get back to you ASAP.
Contact an auto refinance specialist.
