If you’re thinking about refinancing your car loan, but you’re unsure, we might be able to clear up some of the common myths. The point of refinancing is often to lower your rate and monthly payment in order to save more money in the long term. It’s definitely possible. Here are some of the common myths you don’t have to worry about.
Myth 1: Refinancing won’t save me much money.
This is totally dependent on your current loan details and the new rate after you refinance. While refinancing doesn’t always save you much money, in the right circumstances, it could save you a lot. Here’s an example of how much you could save on a $20,000 auto loan for 60 months1.
3 Myths of Refinancing Your Car Loan
| ||Current Loan||Connexus||Savings Through Refinance|
Myth 2: Refinancing my car loan is a hassle.
Most people think the process of refinancing takes too much time and effort. But one of the great parts about refinancing with Connexus is that the application can be done online in just three steps. We make refinancing easy, so you never have to worry about a hassle.
Myth 3: There’s no extra incentive to refinance.
While that may be true at other credit unions or banks, when you refinance your auto loan at Connexus, you get way more than a loan. If you refinance with Connexus, you’re eligible for the following:
- No payments for 90 days2
- No prepayment penalties
Now that those three myths have been busted, you know refinancing is an easy way to save money each month. To learn more about refinancing at Connexus, check out our Auto Loan page.
1 Example savings received through refinancing a 60 month, $20,000 auto loan at a fixed rate of 4.49% APR for the term of the loan. Starting rate of 6.99% APR is representative of auto loan rates refinanced at Connexus in 2016. Comparison rate of 4.49% APR is the average auto loan rate for Connexus members in 2016.
2 Interest begins accruing upon disbursal of loan. Deferred payment available upon credit approval. Some restrictions apply. Deferred payments may not exceed 90 days.