Being locked into a less-than-ideal loan or lease is the modern-day equivalent of dragging around a ball and chain. Refinancing the loan on your existing vehicle could help you keep money in your pocket with a much better loan or lease agreement.

If you feel like you’re paying too much for your car, it might be time to look into the other options available to you.

Here’s a breakdown of what’s involved when refinancing your current auto loan.

What are the benefits?

Lower monthly payments
Refinancing your auto loan can lower your monthly payment by either extending the term of your current loan and/or giving you a lower interest rate.

More money in your pocket
A potentially lower interest rate means you pay less in the long run.

It’s quick
It only takes 10 minutes to complete an online loan application.

 

Things to consider

If you have an existing auto loan with a balance owing over $10,000, it’s worth your time to shop around and see if refinancing your auto loan will help you save some cash.

When you’re thinking about refinancing, these are three important things to consider:

Payments: how much money you will be paying every month.

Term: how many months or years you’ll make these payments for.

Who owns your loan: You can’t refinance with the financial institution that currently owns your loan, which is why you have to shop around. For example, if Bank A owns your loan, you wouldn’t be able to refinance with them. You would only be able to refinance your auto loan at Bank B, Bank C or any other bank than Bank A.

How do you refinance your existing auto loan?

Say you were refinancing your loan with us. Here is a breakdown of how the refinancing process works:

1. You begin by submitting a credit application at Coast Capital Savings.
2. Upon approval, you agree to the terms and features. This could include a potentially better interest rate than you’re currently paying, a lower payment, and/or an extension on your loan. Our team can help make sure you’re getting what you need from your loan.
3. Your existing loan is paid off with the new one.
4. Now you begin paying down the new loan at Coast Capital Savings.

 

Are you paying too much for the car you have? Explore your options by giving us a shout.

 

The stuff we have to say.

Coast Capital Savings Federal Credit Union provides advice and service related to deposit, loan and mortgage products.  Only deposits held in Canadian currency, having a term of five years or less and payable in Canada are eligible to be insured under the Canada Deposit Insurance Corporation Act.  Coast Capital Wealth Management Ltd provides investment and financial planning services. Coast Capital Financial Management Ltd. provides advice and service related to segregated funds, annuities and life insurance products. Worldsource Financial Management Inc. provides advice and service relating to mutual funds. Mutual fund values change frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses may all be related with mutual fund investments. Important information about mutual funds is contained in the relevant fund facts and simplified prospectus. Please read the fund facts carefully before investing.