Car payments too high?
Refinance your loan and drive happier this summer
Feeling the pinch from high interest rates and inflation? If you’re looking to lighten the burden on your budget this summer, consider refinancing your car loan to lower your interest rate and monthly payments.
According to the consumer advocates at Nerd Wallet*, the average monthly payment at the end of 2024 was $742 for new cars, and $525 for used cars. If high car payments are dampening your happy California summer vibes, refinancing to a new loan with either a lower interest rate or longer term could help you cruise into summer with lower car payments.
How does auto refinancing work?
Auto loan refinancing is simply replacing your existing auto loan with a new one. Submit a loan application at Golden 1 and have your loan payoff information handy. Ideally, your new loan will offer a lower interest rate, longer repayment period, or both to reduce your payments.
Three reasons to refinance your auto loan
- Lower your monthly payments
- Get a better rate and pay less in finance charges over the life of your loan
- Accelerate the payoff of your car
- Lower your monthly payment
There are a few ways to potentially lower your car payment. One option is to refinance at a lower interest rate. Another option is to refinance for a longer term, which reduces the amount of each installment payment. However, while extending the loan term can lower your monthly payment, it may increase the total interest paid over the life of the loan.
- Reduce your interest rate
When refinancing, the goal is to secure a new loan with a lower interest rate than your current loan. Since rates are constantly changing, shopping around and timing your application, can help you lock in a better rate. If your credit score has improved since you financed your vehicle, you may qualify for a lower rate, which can reduce both your monthly payment and overall finance charges.
- Accelerate the payoff
Choosing a shorter auto loan term means you could pay off your car sooner, pay less in overall interest, and start enjoying life free from car payments. Refinancing for a shorter term than what remains on your current loan, however, could result in a higher monthly payment unless the new interest rate is significantly lower.
How much could you save by refinancing?
Your savings will depend on a variety of factors, including: your remaining loan balance, current interest rate, remaining loan term, the interest rate of your new loan, and the term you choose. Keep in mind, however, that extending your loan term will increase the amount of interest paid over the life of the loan. Use Golden 1’s online auto loan calculator to see what your savings could be.
Start your refinance engine at Golden 1
If you’re thinking about refinancing, Golden 1 makes it simple and pressure-free. You can count on an easy online loan application, competitive rates and terms, and a quick loan decision. You can also apply by phone at 1-877-465-3361 or at any Golden 1 branch.
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