Remember buying your car? The assumption was that you got a great deal. But did you?
Your car loan is tied to an interest rate. Is yours higher than it could be? Does it matter? Here are some things you may not have thought about when you financed your car…and some things you might want to fix:
Interest rates matter. Dealerships usually charge more interest than independent lenders, like at the Ashland Community Credit Union. A few dollars saved a day, can add up to hundreds of dollars saved a year with a lower interest rate. And so, unless you like throwing a bunch of money out your car window, you should think about refinancing!
What you finance matters. Did you include a service plan, or a warranty onto your car purchase? Those aren’t cheap, and you may have payed too much in the first place. That extra expense is probably rolled into your high interest loan, and that means those plans are even more expensive. Refinancing can allow you to restructure those service plans and warranties, too…at a much lower price, and with less interest.
Timing matters. If you buy a car at a dealership today, they’ll want to get you financed today. That’s convenient. But the high interest rate starts immediately…on the biggest balance. Every day you wait to refinance is costing you money. If you do get dealership financing in the heat of the moment, it’s ok! Just be sure to refinance as soon as possible.
Your Credit Score matters: Higher rates affect credit scores on their own. They also force higher payments and maybe even late payments. It all matters to the people who keep score. If you’re trying to raise your credit score, lower your interest rate. That’s the least you can do.
Finally, don’t be fooled. If you have a low credit score, you may have been sold a higher interest rate as an “only option”. That may not be the case. When you get a high interest rate, it’s usually in someone else’s best interest, not yours.
It’s easy to refinance your auto loan at the Ashland Community Credit Union. Ask us if a lower interest rate will make a difference for you. Call 419-289-6211 for more information.