Online Auto Refinancing vs.
Credit Union Refinance
An online auto refinancing question from the
Refinance My Auto Loan page. Sam in Olympia, WA asks...
I have about $6500 in my auto loan outstanding and the current rate I am paying is 9.24% with 34 months remaining with my current lender. I have excellent credit too. I feel that at $224 a month, I am paying way too much.
What do you think would be better, refinancing online or a credit union refinance and could you please provide some online sources?
Many of the online refinance sources I used to recommend have not been very effective or competitive in today's economy and I'm no longer recommending them. But recently, I have found Money Aisle which has worked quite well for many visitors looking to refinance.
They run a very unique Reverse Rate Auction that has lenders compete for your business by lowering your rates right in front of your eyes. As of now they work with nearly 200 lenders nationwide. Check them out here: Money Aisle Online Auto Refinancing.
I would say that a credit union refinance will typically be the best option for refinancing as their refi rates will usually be the same as purchase rates (you'll find quite a few through Money Aisle).
Banks oftentimes have higher rates for a refi vs. a new purchase. In addition, bank rates tend to become less and less competitive vs. credit unions for each year older the vehicle is.
If you are not able to find a lender on Money Aisle and if you're not already a member of a credit you can visit the Credit Union National Association (CUNA) to find one or more in your area. Visit CUNA here.
You should, with excellent credit, be able to do much better than your current APR and monthly payments. Even with simply above average credit I'd still think you'd be inline to knock off a couple of points from where you are at now.
Hope this helps,
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