5 Reasons to Save Money by Refinancing Your Auto Loan
According to AAA, the average cost of owning and operating a car is
$9,666 per year.
Owning a car can be expensive. Next to your rent or mortgage, your car payment can be one of your largest household expenses.
Luckily, there are some pretty simple ways to save money on car expenses without requiring a lot of sacrifices.
One of the easiest ways is to evaluate your auto financing and see if you can save money by refinancing.
Should You Refinance Your Auto Loan?
On average, a new car costs over $42,000. Unless you have enough cash sitting in your bank account, you will need to finance at least part of that cost.
Refinancing your auto loan could save you a significant amount of money,
especially if your credit score has recently improved or you originally financed with a high-interest rate.
5 Benefits of Refinancing
1. Get a Better Interest Rate
Over the life of an average car loan, you can end up saving thousands of dollars in interest payments by lowering your interest rate by just a point or two.
2. Lower Your Monthly Payment
If your household budget has changed and your other expenses have gone up, it can make sense to secure a lower monthly car payment.
3. Shorten Your Loan Term
If you have some room in your budget, refinancing your auto loan to a shorter term can help you save money in the long run.
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