What does it mean to refinance my auto loan and how does it work?

This means your new lender pays off your existing auto loan and the title to your vehicle is transferred to your new lender. When you call, we’ll need the year, make, model, mileage of vehicle and name, phone number and account number of your current finance company.

Why should I refinance my existing auto loan?

These days, any extra money can come in handy. If you're trying to cut costs wherever possible, refinancing your car loan can free up some cash. It can also reduce the overall interest costs and/or monthly payments.

When is refinancing your auto loan a good idea?

There may be several good reasons to refinance your auto loan.

1. You may be able to get a lower interest rate.
2. You can lower your monthly payments. If you get a lower interest rate, your monthly payments should fall, too. However, avoid the mistake of stretching out the term of your auto loan. Although it may yield lower monthly payments, that is also the surest way to end up with an upside-down loan. Call us at (800) 897-6991.
3. You may be able to fix an upside-down loan. An upside-down loan means that you owe more for your auto loan than the car is worth. Refinancing may be able to correct this situation. No one wants to trade-in or sell a vehicle and find out that the money given for the car won’t even cover the balance on the auto loan.

If any of these reasons apply to you, then you may want to consider refinancing. Call us at (800) 897-6991 or come by to discuss your options and pick a rate that fits your situation.

Are there any fees associated with the auto refinance?

There is a documentation fee of $40, lien holder fees ($5 to $10), state re-registration fees ($5 to $75) and possibly even a prepayment fee set up by your original lender.

*Annual Percentage Rate/With Approved Credit on models 2011 and newer. Available for new and refinanced auto loans, existing 66 Federal Credit Union loans are not eligible. 10% equity required for this rate. Rate effective 1/30/2012; subject to change without notice. Terms up to 36 months. The term is provided to help you estimate the payment. Loan payment example: $15,000 at 2.99% for 36 months = $437 per month. Other rates and terms available. $50 documentation fee applies.