Auto Loan Refinancing For Savings

- Hi, I'm Jean Chatzky, and this is your SavvyMoney Minute.

- [Announcer] Brought to you by Credit Union of Southern California.

- Mention the word refinance and chances are you think mortgage, also, paperwork, and hassle. Yes, refinancing your mortgage can mean both, but refinancing your car loan? Not necessarily. Consider with a four year loan at 8% interest, a $20,000 car costs you $488 a month. Drop your rate to 4% and your payment is $452. Over the life of your loan, you save over $1,700, and it's easy. Find a less expensive competing lender. You'll pay off your original loan with money you borrow from the new lender but at a lower rate. Your cost? Likely just a small title transfer fee. One tip, credit unions and online lenders often have the best rates, especially if your credit score has improved since you bought the car or if your current loan rate is high. Some lenders will even allow you to take cash out. A bigger loan, yes, but at a lower interest rate. Use that extra cash to pay down higher interest rate debt like a credit card and save big money. I'm Jean Chatzky for SavvyMoney.

Keep your car. Lower your payment.

Bring your auto loan from another lender to CU SoCal and we'll lower your rate by at least 2%.

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Credit Union of Southern California (CU SoCal) is a leading financial institution empowering those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County to reach their goals and build strong financial futures. CU SoCal provides access to convenient money management services and offers competitive rates and flexible terms on auto loans, mortgages, and VISA credit cards—turning wishing and waiting into achieving and doing.


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