Refinancing Your Car: Tips to Make It Worthwhile

Refinancing Your Car: Tips to Make it Worthwhile

How much do you pay each month on your car payment? If you don't know the interest rate on the loan, it may be time to find out. Refinancing your car loan can save you money and help you to stay within your budget each month in some cases. In other cases, it can increase the costs you'll pay for your vehicle. How do you know the difference? When should you consider refinancing?

Reasons to Refinance Your Car Loan

There are two main reasons to consider refinancing. First, you may benefit from a lower interest rate or APR. Second, a lower monthly payment may be available. In some situations, you may get both outcomes.

Here are some situations in which refinancing makes very good financial sense:

  • Interest rates are two or more points lower than what you are paying
  • Your credit score is significantly improved, and you now qualify for a lower interest rate
  • Your financial situation has changed and you need a lower monthly payment (though realize it may end up costing you in the long term)
  • You have a car lease that is going to expire soon, and you want to purchase the vehicle with an affordable monthly payment and interest rate
  • You want to do better on your loan rate or payment than you did when you first bought your car

The fact is, refinancing starts with understanding your current loan terms and what is available to you from a lending institution. Talk to financial consultants about your options and learn if you could save money either monthly or in the long term by making this move.

What does our Date to Compare program have to offer to you?

Check Out Dare to Compare

We're working to help you learn about your ability to refinance and the savings it can offer you. Our Dare to Compare event makes this easy for you to do. What does this program have to offer to you?

In short, there's little risk to you. If you need a better car loan that aligns with your financial needs, refinance your current loan with BMI FCU. Refinance with us and we'll give you $150.* If we cannot offer a lower rate or monthly payment to make refinancing worthwhile, we'll give you $50.** You can apply online for the loan and learn about your options right away. In short, there's no reason not to consider refinancing your loan when you can see the opportunities available to you.

As a consumer, you need a credit union that's working for you by providing you with the insight and opportunities you need to save money. Our Dare to Compare program is just one of the many options available to you.
Check Out the Dare to Compare Program

*Mention promo code CAR0715. Cash bonus of $150 will be given for the refinance of each auto loan from another financial institution. Cash bonus will be deposited into the savings account within 5 business days after the loan is funded. Loan must be funded within 10 days of approval. Minimum loan amount of $5,000 and automatic loan payment setup is required for cash bonus.

**If BMI FCU cannot offer a lower Annual Percentage Rate (APR) or lower payment than your existing APR or payment, applicant will receive a $50 cash bonus. Applicant must be eligible and approved for financing at BMI FCU. Cash bonus will be sent after 30 days from the date of BMI FCU loan approval and after applicant presents a copy of signed loan note and disclosure from the competitor. Dealer Manufacturer financing is excluded from this program. Cash Bonus may be considered income and reported on 1099 MISC or 1099 INT. Existing BMI FCU loans are not eligible for this offer. Offer ends October 31, 2015. Membership eligibility requirements apply. Rates, terms, and conditions are subject to change and may vary based on creditworthiness, qualifications, and collateral conditions. All loans subject to approval.