Auto Refinancing

We are going to let you in on a secret that those shady auto dealers don’t want you to know. It’s a little thing called auto refinancing that can help you save big.

This is how it works.

Auto refinance is the same as home refinance in that you pay off your current car loan with a lower APR loan from a different lender. The difference is that there is no appraisal necessary and no fees of any kind for the member to pay.

It’s especially good for you because refinancing auto loans makes your monthly car loan payments lower, and your interest rate drops, which can allow you to pay off the balance of your car loan even quicker.

This is especially important for a person without perfect credit, who may be paying a very high APR.  Unfortunately, many people are duped at the dealer into thinking that they are stuck with the rate they were given, which can be as high as over 20%!

Here’s a Real World example.

Suppose you borrowed $18,000 for 60 months on your new Honda Accord. Let's assume your credit was bad, you had no previous credit, or the dealer lied about your credit and charged you a higher APR than you should have paid. Unfortunately this happens often. Suppose the dealer "got you approved when no one else would" at 20% APR for a 60 month car loan. So you start paying off your car loan for a few months, then refinance your car loan with Credit Union’s current auto loan rate of  5.49%APR*.
  

Interest	Payment
Rate (APR)	On Car Loan	Total Interest
20%	$476.80	$10,607.17
5.49%	$343.73	$2,623.26

Your current payment at 20% APR would be: around $476.80
Your new car loan payment at 4.99% APR is: around $343.73
You would save $7,983.91!

And even if you got a reasonable rate at the dealer, 8% for example, it is still worthwhile for you to move it to the Credit Union.

Interest	Payment
Rate (APR)	On Car Loan	Total Interest
8.00%	$364.95	$3,896.98
5.49%	$343.73	$2,623.26

Your payment at 8% APR would be: around $364.95
And you would pay a total of $3,896.98 in interest.  You could still save $1,273.72!

The Credit Union offers the best value in auto loans and we make the process quick, smooth, and comfortable. Whether you want to lower your interest rate, lower your monthly rate or both, we will gladly review your load and determine if refinancing is right for you.

Apply Today!  You can apply online or come in to any one of our branches.  You can also call 617.495.4460 or email CUMemberContact@harvard.edu for more information about this or any of our other services. Click here to see current rates.