Is Auto Refinancing Right for You?

Reducing Interest Rates

The Good: Imagine trimming down the cost of your car loan just by adjusting the interest rate. With inflation affecting the cost of car purchases, securing a lower rate when you refinance can mean big savings over the life of your loan—that’s more money staying in your pocket, where it belongs!

Something to Think About: Of course, there’s a catch. Lowering your rate might mean shortening the term of your loan—which could lead to a higher monthly payment. While you’re likely to save in the long run, it’s important to think about how a higher monthly amount fits into your current budget. We’re here to help you weigh that out so it’s not overwhelming!

Lower Monthly Payments

The Good: Let’s be real—sometimes life throws curveballs, and your current car payment can feel like it’s really squeezing your budget. Refinancing to get a lower monthly payment can give you that extra breathing room, giving you more flexibility and helping reduce financial stress. Imagine fewer worries and more of your budget going towards things that bring you joy!

Something to Consider: That said, lowering your payment can sometimes come with a trade-off. Extending the loan term means you could end up paying more in interest overall, and you might find yourself in the awkward position of owing more than your car is worth at some point. We want to make sure this decision lines up with your bigger financial goals, so you’re feeling good today and down the road.

Borrowing Extra Money

The Good: Picture this: you’re able to tap into the equity of your car and get some extra funds—maybe for an unexpected home repair or to fix up the car itself. Cash-out refinancing isn’t just for houses! Sometimes it makes sense for vehicles too, and when it does, it can really help bridge those financial gaps without needing a separate loan.

Something to Weigh: Keep in mind, borrowing extra means adding to the life of your loan—which means paying more over time. We’re here to talk you through the pros and cons and see if cash-out refinancing is the best option for your situation.

These are just some of the most common questions we get about refinancing, but we know every situation is unique. Our team of auto lending specialists is always ready to chat—whether you’re looking to save some money, get some peace of mind, or both! Let’s work together to find the best way to keep you and your budget happy. Give us a call at 804-274-1200, visit any of our branch locations, or apply online to get started today.