What does it mean to refinance your car?
Refinancing a car means replacing your existing auto loan with a new loan with more beneficial terms based on your financial situation. You may be able to refinance an auto loan so you can achieve your goal of a lower interest rate or more manageable monthly payments. Continue reading to see why you should bring those loans home to Westport Federal Credit Union.
Why refinance a car loan?
If you’re trying to pay less over time, you’ll want to work out your interest rates with a refinanced loan. Get a lower interest rate for the same period, and pay less. You could get a better interest rate for a few different reasons:
- Economic factors have led to an overall lowering of interest rates
- Your credit score has improved since you took out the original loan
You can also change the terms of your car loan to pay less each month by extending the length of your loan. This could help if you’re having a hard time making monthly payments and could benefit from extra money each month without lowering your credit score. As you work to make your decision, make sure to calculate how much you’ll actually be paying overall to see if the higher total cost is worth lower monthly payments.
At Westport Federal Credit Union, we offer free pre-approvals for a new or used auto loan or to refinance your existing one. We are also currently offering the lowest auto loan rate in the Westport and Fall River area starting at 2.79%!*
Refinancing a car won’t always be the right decision for you. However, if interest rates are in your favor, auto loan refinancing could save you money over time – and get you on the road to your next savings goal. Apply 24/7 at westport.org. Secure your financial future with us.
*rates as low as…subject to creditworthiness. Terms from 24-84 months.
