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 If you currently pay a higher rate on your auto loan elsewhere, refinance with us.
Tune Up Your Car Loan
"Refinancing can be ... the most profitable legal act many humans are capable of performing," says consumer author Andrew Feinberg. Think about it: At a time when it's hard to earn as little as an extra half a percentage point or more on your savings, you might be able to "earn" two or three percentage points by improving your auto loan rate.
Buying a car or truck is a thrill. Many buyers will do just about anything to acquire the vehicle they want. Sometimes, that includes going for a "right now" loan instead of the best loan rate. If that happened to you, don't passively suffer buyer's remorse. Call our office at (714) 577-8454 and ask for the loan officer or contact us at loans@family1fcu.org. If the vehicle's still fairly new, and you qualify, we'll help you trade in that costly loan on one that won't dent your fenders.
How much can you save? Say you've had a 60-month car loan at 10% annual percentage rate (APR) for about a year, and you financed $15,000, close to the national average. At monthly payments of about $319, your balance is about $12,565. If you can refinance at 7.95% APR for the remaining four years of your loan, monthly payments will go down slightly, to about $307. But you'll pay about $587 less in total finance charges for the remainder of the loan. Now that's a deal with real road appeal!
Most dealers offer you options when you finance with them. One option would be to take the 1.9% financing. Another option would be to take a rebate and finance elsewhere. You usually don’t see both. We’ll show you why it is better to take the rebate and finance with Family 1.
For example, you are interested in a $20,000 vehicle and a loan term of 48 months. Dealer financing offers you 1.9% APR, with no dealer rebate. However, if you choose to finance with Family 1, you can get a $2,500 dealer rebate, so you only need to finance $17,500.
Your monthly payment and total interest paid will be LESS at Family 1!
Take a look at our example:
DEALER FINANCING With a $20,000 loan at 1.9% APR for 48 months, your monthly payment would be $433.06. Total payback over the term of the loan (principal and interest) would be $20,786.81.
CREDIT UNION FINANCING
With a $17,500 loan borrowed from Family 1 ($20,000 less the $2,500 rebate) at 7.75 % APR for 48 months, your monthly payment would be $425.30. Your total payback over the life of the loan (principal and interest) would be $20,413.88.
Your savings would be $327.93 over the life of the loan. Does 1.9% financing still sound so good? Remember, in addition to having a lower monthly payment, you have the convenience of automatic transfer for your loan payment.
TAKE THE DEALER REBATE, BUT FINANCE WITH FAMILY 1 AND SAVE
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