(This content is excerpted from AAA Going Places magazine, July/August 2011 issue.)
Did you know car loans can work like mortgage loans – if your rate is too high, you may be able to refinance. Whether rates have come down since you purchased your vehicle, or you’ve just left the showroom and aren’t sure if you got the best interest rate, refinancing presents a great opportunity to save money.
Get a better interest rate
The rate you started with may have been a good value at the time, but now rates have dropped. Refinancing is worth looking into, even if you recently purchased your vehicle at the dealership and can only get the rate down one or two percentage points. Even a $10 monthly reduction could save you hundreds over the life of your loan.
Free up more cash
If you need more money at the end of the month, refinancing your existing auto loan could be a great way to free up some extra cash. By extending your original loan term, you could lower your monthly payment and stretch your monthly budget.
Keep the car you lease
If you leased your car as an alternative to financing, you may want to consider buying out your lease at the end of your contract. You can refinance the residual value and keep the car you’ve grown accustomed to.
Does refinancing sound like a good idea to you? Check out our current auto loan promotion, and you could earn 2% cash back on your refinance from another institution!
Posted by Melanie [ 07/28/2011 at 15:17:16 ]