Simply put, your new auto refinance loan replaces the loan you currently have on your vehicle. The new loan pays off the debt on the old loan and nearly always will have different terms, such as the interest rate on the loan and how many months or years you have to pay off the new, refinanced loan.
Here's one example of how refinancing your car loan can affect how much you pay each month:
- Let's say your original loan was in the amount of $30,000 and your loan now has a balance of $20,000. It has an annual percentage rate (APR) of 5 percent and a 60-month loan term, and your payment is approximately $566.
- A new auto refinance loan for $20,000 with an APR of 3.14 percent and a term of 72 months would reduce your payment to approximately $305 per month.
SCCU has low rates on auto loan refinancing and auto purchases, with terms ranging from 36 to 78 months. Use our auto refinance calculator
to get an idea of how much you could save with a loan from SCCU.