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November 17, 2020
by: Emilee Shostrom

Benefits of Refinancing your Auto Loan

Navigating a new auto loan can be confusing, let alone considering options to refinance. Do you have questions about refinancing an auto loan? We want to help! Our Consumer Relationship Manager, Josh MacDonald, breaks down common FAQs on refinancing:

Question
What is refinancing?
Answer
In short, refinancing just means that you are replacing an old debt with a new debt that has new terms. So essentially redoing your existing loan with new terms.

Question
Why should I consider refinancing?
Answer
Rates move around based on economic conditions, so sometimes months after you start your loan you can get better terms because the market has changed. Also, if you have been working on rebuilding your credit you may qualify for better terms simply because your score has improved.

Question
When can I refinance my auto loan?
Answer
You can refinance it almost any time. When you first take out a new loan at a car dealer, for example, we do need to wait until the new lender gets the loan posted. Usually that takes 2-3 weeks. Refinancing your auto loan is easy. We just complete an application that takes about 5-10 minutes, and then we get some details about your collateral.

Question
How much does it cost to refinance?
Answer
Kohler Credit Union doesn’t charge any fees to refinance. There is just a $29.50 DMV fee to redo the lien.

Question
How long does it take to refinance?
Answer
It depends on the situation; however, it can be completed as quickly as the same day in some cases!

Question
What else can I refinance?
Answer
You can refinance almost any debt; it is best to talk to a lending specialist to see what the new terms could look like.

Question
Is refinancing bad?
Answer
Refinancing can be beneficial for you if you move over your existing loan to better terms. After a few months, the impact to your credit score from refinancing starts to fade away, and then you still have the more favorable terms for the duration of the loan!

Refinancing can be a great way to save money over the course of your loan. If you have a vehicle loan at another financial institution, Kohler Credit Union can help you potentially lower your rate, lower your monthly payment, and save on interest. We offer competitive rates, and the entire process can be done online!

If you have any additional refinancing questions or want to apply for a vehicle loan, contact one of our Lending Specialists!

Visit our Vehicle Loans page to learn more about our vehicle loans and see our current rates.

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