On average, Americans spend $1,000 during the holiday season, with over half of that on holiday gifts alone. In addition to gifts, people also spend money on holiday travel, decorations, food, winter activities, and more!
On top of all that, you also need to pay your regular monthly expenses, such as rent/mortgage, utilities, insurance, and car loan payments. It can all be a little overwhelming and leave you (and your finances) in a bad spot.
Instead of cutting back on holiday festivities, consider refinancing your current auto loan.
4 Reasons to Refinance Your Car This Winter
- Lower Your Monthly Payment
One of the benefits of refinancing your auto loan, when you qualify for a lower rate, is that your monthly payment can decrease, which means you will be saving more each month.
A little extra money each month is great, especially around the holiday season, because it gives you more money that you can spend on gifts, holiday decorations, or even add to your savings.
Additionally, with a lower monthly payment, you can start the New Year on a better financial path than before.
- 30-60 Day Payment Deferred
Some lenders offer deferred loan payments for 30, 60, or up to 90 days after loan closing.
If this is something offered to you, refinancing your auto loan during the holiday could be the best choice.
Why? Well, delaying your loan payment for 1-3 months (depending on what is offered to you) around the holiday season can offset any large purchases you plan on making (or have made) and give your wallet some breathing room.
- Lower Interest Rate
Depending on when you financed your current car loan, it’s probable that either auto loan rates have fallen, or your credit score has improved, or both.
If that’s the case, you can qualify for an auto loan with a lower APR, which, over time, can reduce the amount you’d pay in interest on the loan.
- Shorter Term
Not everyone wants to refinance their auto loan for a lower monthly payment. If your current auto loan is longer than you’d like, consider refinancing for a shorter term.
Although this will raise your monthly payment, refinancing for a shorter term can benefit you in the long run by helping you pay off your debt sooner, and in the near future, you can enjoy a holiday season without a car payment.
Auto refinancing is not a standard process for everyone, as each person has a unique situation.
If you find yourself wanting to refinance your car loan, Triangle Credit Union is offering a limited-time 4.99% APR* special. Visit our website for full terms and conditions and to apply online!
*APR = Annual Percentage Rate.
