Refinance My Auto
Did You Get the Best Deal on Your Auto Loan?
Aside from your home, your car is likely one of your most expensive budget items. Bring your auto loan to Fort Worth City Credit Union, and we'll do our best to get you a better interest rate and a lower monthly payment! We have helped thousands of members lower their car payments and free up money in their budget, and we want to help you, too.
The principle behind auto loan refinancing is simple: You take on a new auto loan to pay off the balance on your existing auto loan. If you’re struggling with a high interest rate or an unaffordable monthly payment, refinancing could be the key to finding better, more favorable terms, or even just access to new payment options that better fit your needs.
If you want a better interest rate.
You might want to consider refinancing if interest rates have dropped since you took out your current loan(1) or if your credit health has improved.
Did you finance your current auto loan through a dealership? Dealerships may not offer you the best rates available. If you took out your loan through a dealer — especially without negotiating the interest rate — refinancing could potentially save you thousands of dollars over the remaining life of the loan.
Check out our current auto rates*. Our status as not-for profit sets us apart from other financial institutions, as we give our profits back to our members in many ways, including low auto loan rates. Instead of padding the pockets of publicly held companies, you are investing in your co-workers and community with every payment you make. Plus, we offer rate discounts for direct deposit, and pay loan interest rebates each year, effectively lowering your interest rate.
If you want lower monthly payments.
Are you having a difficult time covering your monthly payment? Refinancing for a longer term can bring down your monthly costs and make balancing your checkbook more manageable.
Keep in mind that while lower monthly payments may help you in the short term, a longer-term auto loan could put you at more financial risk. You may be stuck paying off a large portion of your auto loan after your car’s value has significantly depreciated. If your immediate goal is to reduce your monthly expenses, an auto loan refinance could still be a good choice. Consider refinancing now but increasing your monthly payment once your financial situation has improved.
WHEN IS THE RIGHT TIME TO REFINANCE?
When you’re not underwater on your current auto loan.
Generally speaking, it’s easier to refinance your vehicle when your car is worth more than your remaining loan balance. According to CARFAX, new cars can lose about 20% of their original value within the first year, and an average of 15% to 25% each of the next four years. If your car is relatively new and still has equity, now could be a good time to refinance.
When your credit health has improved.
If your credit score has gone up since you bought the car, and you have made on-time car payments, you could get a better rate and save on your monthly payments. At Fort Worth City Credit Union, we use your FAIR Isaacs Credit Score to help determine your creditworthiness. A higher credit score or a lower debt ratio can be an indication that you’re more likely to pay off your loan, so you now be eligible for a lower rate.
IS IT DIFFICULT TO REFINANCE?
Refinancing your auto loan with Fort Worth City Credit Union is quick, easy and could save you money each month – which could add up to hundreds of dollars over the life of your loan. Stop by our office, apply online, or call or text us at 817-732-2803 and we’ll get you on the road to saving money.
1-Auto loans currently financed through Fort Worth City Credit Union cannot be refinanced with this offer.
2-Interest accrues from date loan is funded.
*APR = Annual Percentage Rate. The Annual Percentage Rate is the advertised rate and can vary based on creditworthiness, age of vehicle and terms of loan. Your rate can be higher or lower depending on credit performance. Financing up to the retail value of the auto is available. Rate is subject to change without notice. Rate and amount financed are subject to creditworthiness. Normal loan policies apply. Approval is subject to FWCCU underwriting guidelines. Credit may not be extended if, after you respond, we find that you do not meet the following criteria, including but not limited to, length of employment, your income, debt status, and ability to pay in relation to the loan amount requested. Additional criteria may apply. Fort Worth City Credit Union reserves the right to cancel this offer if you do not meet the criteria established in this offer. See Credit Union for full details. This information is not an offer to extend consumer credit as defined by Section 226.2 of Regulation Z.