How to Refinance Your Car Loan

Are you thinking about refinancing your car loan? Here’s what you need to know.

Maybe your credit score has improved since you bought your ride. Or maybe you got the car when rates were less favorable than they were today. Or maybe you’re struggling with your existing monthly payment and want to explore other options.

Whatever your reason, we’re here to help you understand the ins and outs of refinancing your loan.

What to Know Beforehand

Refinancing your existing loan means replacing it with a new loan. The goal is that the new loan will come with a lower interest rate and/or better repayment terms.

Applying for this new loan is a lot like applying for any other loan. Prepare by gathering all the necessary documents and reviewing your existing loan information. Make note of your monthly vehicle payment, your annual percentage rate (APR), your repayment period and the remaining loan balance.

It’s also a great time to review your car warranty and GAP coverage. If you got these products at your dealership, there’s a pretty good chance we can bring those costs down for you, too.

Then, it’s time to weigh the benefits.

Reduce Your Loan Term

Refinancing your car loan can help reduce your repayment period. If you’re interested in paying off your car faster, this is a great way to potentially speed things up.

Lower Your APR

Less interest = more money going toward your principal = saving money AND paying off your loan ASAP.

Skip Your Car Payment for Up to 99 Days*

YUP, you read that right. When you refinance your car loan with Community Choice, you can skip your car payment for up to 99 days*.

Lowering your interest rate, reducing that monthly payment AND taking a break from the bill?! Now that’s UNbelievable.

Here’s how to do it:

1. Fill out this easy, peasy form–we need some basic information about you, your existing loan and any other details worth noting.
2. An UNbanker will reach out to you once the underwriting process is complete. If qualified, you’ll find out what your new loan terms are.
3. Once you’ve read and agreed to these terms, you’ll make it official by signing your new contract.
4. Then, we’ll take care of paying off your existing loan and get you set up to start making payments on your new loan.
5. …after you enjoy up to 99 days* without a car payment, of course!

Learn more about our competitive rates here.

This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.

*APR = Annual Percentage Rate. Limited time offer and subject to change without prior notice. Offer only for loans for the purchase of a new or used auto or to refinance an existing auto loan currently at another financial institution. Rates and approval subject to credit review and analysis. Equal opportunity lender. Additional terms and conditions may apply, see credit union for details.