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.
Five 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
- Take the summer off from car payments with our 90-day payment deferral offer1
- Get an auto loan rebate up to $5002 by refinancing at Golden 1
- 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.
- Take a three-month break from car payments
Golden 1 offers the option to defer the first payment on your auto loan refinance1. Whether you’re refinancing to lower your interest rate, obtain a lower monthly payment, or to accelerate the payoff of your vehicle, a three-month break from car payments could allow you to save a big chunk of cash before the first payment on your new loan is due.
- Get a loan rebate of up to $5002
Refinancing could also put cash back in your pocket. When you refinance your current auto loan with Golden 1, you can get a loan rebate of up to $500 based on 1% of your new loan balance.
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.
*By selecting any link to third party content, you will enter a website that Golden 1 does not control. We have provided these link for your convenience, but we are not responsible for the content, links, or the privacy or security policies of these websites.
1Interest will accrue during the deferment period from the loan origination date. All interest charges accrued during the deferred period are required to be paid prior to any payment applied to the principal. The 90 days to first payment applies to all borrowers for new and used auto loans, excluding 10-15 model years old and cash out refinances. Maximum total amount financed up to $75,000.
2Offer is valid for an existing auto loan with another lender that is refinanced with golden one and has an application date between May 1, 2025, and July 31, 2025. Existing golden one auto loans are not eligible for offer. Offer excludes RV, boat, and motorcycle loans. Rebate amount is determined by the loan amount funded. Rebate will be deposited directly into your share saving account on the first business day following loan funding. You are responsible for paying any and all applicable taxes. Annual percentage rate (APR) may vary based on creditworthiness, collateral conditions, and qualifications. All loans subject to approval and terms rates restrictions and conditions are subject to change.
