Is refinancing your current car loan worth the time?
There are no solid rules, but consider this — for every $10,000 borrowed, a drop of 1 percentage point is worth about $5 per month over 48 months. Roughing out the subprime-to-prime example above: a 7% drop is worth $35 (times 1.5 because the balance is about $15,000) and there would be a bit more than $50 in monthly savings. But if the drop is from a 4% rate to a 3% rate, the savings probably wouldn't be more than enough to buy you an extra tank of gas each year (depending on gas prices, of course).
But as the auto industry continues to encourage longer-term, higher-dollar-value car loans, the calculus toward auto loan refinances continues to tip in consumers' favor, so it doesn't hurt to ask.
Is refinancing right for you? Call and ask to speak with one of our loan professionals. Or apply online and have us give you a call.