Buying a car can be stressful for those who need an auto loan to complete their vehicle purchase. Additionally, rates for auto loans depend on several factors, including your credit score, cash on hand, and where you receive the loan.

With so many contributing factors, there’s a chance you may not have received the best loan rate from the initial financial institution. Refinancing to an Achieva Auto Loan can lower your current interest rate and make things right. 

What does refinancing an auto loan mean?

In its simplest terms, refinancing means taking out a new loan to pay off the previous loan. You may have bought your car responsibly, but that doesn’t always guarantee the most favorable payment.

By refinancing, you can save money on interest or make paying off the loan easier by adjusting the terms. Below, we’ll give you three examples of when refinancing works the best. Continue reading to learn more.

Your Car Note Payment is Too High 

Cars are expensive. According to Experian’s “State of the Automotive Finance Market” report, consumers pay an average of $742 per month for a new car and $525 for a used one. 

If you’ve increased your income and credit score, or decreased your debt, your budget could benefit from refinancing your auto loan.

Your Income Decreased from the Time of Your Initial Auto Loan

While refinancing an auto loan can be a great move if you’ve increased your salary, it’s also a good strategy if you’ve experienced a salary decrease. 

A refinanced loan will feature new interest rates, new monthly payments, and a loan term that could be more favorable. All of which can lessen the strain on your wallet. Achieva provides excellent auto refi options to qualified buyers and currently supplies free GAP insurance on all eligible refinances. 

You’re Not Happy with Your Current Lender

It’s an unfortunate fact that the car-buying experience is a transactional one. Buying a car from a dealership or car lot may have gone well, but dealing with an unforgiving lender can be a real pain. 

Maybe your lender isn’t always helpful when financial issues arise, can’t answer simple questions about your loan, or they’ve done other things to sour the relationship. 

There’s nothing wrong with moving on and building a better relationship with a new lender. 

Make the switch and refinance today!

To conclude, if you find yourself in any of these categories, it may be time to refinance your auto loan. Consider your options and make a change to Achieva Credit Union. We’ll be happy to review your specific needs and review the best terms for you. Visit www.refiandride.com to get started.

Need more financial content? Continue following the Achieva Life Blog for additional money-saving articles.