WEOKIE Federal Credit Union By WEOKIE Federal Credit Union • April 16, 2020

If Money is Tight Right Now, Consider Refinancing Your Car

People in Oklahoma have a lot of reasons to consider auto refinancing. Perhaps you’ve lost your job or are experiencing a temporary layoff?  Interest rates have decreased drastically and you might be able to shift some finances and help save some money. 

Here at WEOKIE Federal Credit Union, some of our members wonder what their options are when it comes to auto refinancing. Many car owners consider these three options: 

  • Selling their car
  • Trading in their car for another one
  •  Refinancing their existing loan

We’ll take an in-depth look at all of them. 

Selling Your Vehicle

Selling your vehicle outright is a great way to increase your personal cash flow. 

If you want to determine if this is the right option for you, start by calculating the full cost of owning and operating your car every month or each year. Add up your loan payments, licensing and registration fees and insurance rates and don’t forget the cost of fuel, maintenance and repair and other expenses such as parking fees. Compare this total against what your car is worth on the selling market to determine if you will achieve your goal. 

Selling your car on your own can likely get you a higher selling price, even if you factor in the cost and time of getting the car ready for sale. 

If you’re wondering whether you should sell your car or consider another option, Credit Karma suggests this decision comes down to a few questions about your current status: How important is getting the maximum sales price for your old car and how much work do you want to do to sell it?

Trading In Your Vehicle

Trading in your vehicle to a dealership is a fast and easy way to get a new or another car that better fits your needs. If you also have a goal to save money, you can trade in for a less expensive car

If you want to determine if this is the right option for you, start by realizing that trading in your car may not get you the highest price for your vehicle. It’s also best to negotiate the deal on your trade-in separately from the deal on the new or used car, so you can determine if you’re getting a good deal on both. 

However, trading in your car can give you a chance for a financial do-over. Especially if current interest rates are lower, you have a better credit score now or you’re offered a good deal, you can start fresh with a new loan that can help your bottom line.

Refinancing Your Auto Loan

Refinancing your auto loan is one of the top ways for you to save money over time. 

Recent credit reporting bureau data indicates consumers can lower their interest rate by an average of 2.4 percent and their monthly loan payments by more than $50, plus almost 67 percent of auto finance companies are offering refinancing. 

If you want to determine if this is the right option for you, ask yourself these questions:

  • Do I want to get a better deal on my car loan?
  • Has my credit score improved?
  • Would it benefit me to have all my financial business under one roof by changing financial institutions?
  •  Do I want to change the length of my loan? 
  • Do I have any equity in my vehicle to use to pay off other debt?

Refinancing your auto loan is likely a good option for you if you answer yes to any of these questions. 

Review Our Auto Programs Online

When you’re ready, we have several services and resources to help you refinance an existing auto loan, bring your auto loan from another financial institution, finance your new purchase from a dealer or a private party and more. Complete our online application, chat or give us a call today at (405) 235-3030 or 1 (800) 678-5363 to discuss your auto refinancing goals.

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