It’s Worth Your Time: Auto Refinancing
“My Mom has always sworn by the Credit Union and its service and great rates. After we had our first child and wanted to plan for a second, I decided to put the Credit Union to the test. I needed to lower my car payment while adding on as little time as possible to the loan. They helped me lower my interest rate and save $50 a month!”
“UMass Five College Credit Union really helped to get my monthly bills under control by refinancing my car. The great terms helped me lower my payment by about $200 a month!”
The above member stories are just a few examples of the savings members have experienced when refinancing their auto loan with UMassFive.
When given the option, most of us will get gas that’s five cents cheaper per gallon if the gas station is nearby. While most of us have probably purchased gas at a premium, it is not the general preference, and it can often feel like we’re wasting money. It’s easy to see the savings in gas because it’s in dollars. For many, interest rates are harder to grasp. However, on a $10,000 auto loan, saving just a quarter percent in interest saves you more than an extra trip driving to the cheapest gas station.
The best part is that you may be able to save well more than 0.25% on an auto loan. At UMassFive, we occasionally analyze interest profiles to see how much money someone would be saving by refinancing. Many borrowers have had the potential to trim over 1.5% off of the cost of their auto loan. To put that in terms of trips to the gas station, on a $10,000 auto loan that’s like saving more than five cents a gallon on gas every trip.
Savings like that can be used to pay down a loan faster than you ever thought possible, or go toward savings or other expenses. Regardless of what you do with the money you save by refinancing, if you’re someone who will take the time to drive an extra few blocks to get cheaper gas, or if you’re just looking for a way to save money without making the effort, consider exploring refinancing. It only happens once, and you benefit immediately and for the life of your loan.