Frequently Asked Questions When Refinancing an Auto Loan
Robins Financial Credit Union is dedicated to our mission to be Member Focused, Financial Partners, Community Proud. We empower our members with the financial knowledge and resources they need to make informed decisions and achieve their financial goals.
Refinancing your auto loan can be a smart financial move if you’re looking to lower your interest rate, reduce your monthly payment, or shorten your loan term. We know for many of our members, the process can be confusing, and you will likely have questions.
In this article, we will dive into the answers to some of the most frequently asked questions with Consumer Lending Manager, Monica Johnson. Whether you’re ready to refinance today or just doing some research, we’re here to provide you with the clarity and confidence you need to make an informed decision. Let us help you clear up the confusion and get one step closer to driving away with savings through an auto refinance at Robins Financial Credit Union.
Q: What does it mean when I refinance my auto loan?
Monica: Refinancing your auto loan means your current loan with another financial institution will be paid off and your new loan will be with Robins Financial Credit Union. Your new loan will then be calculated with your new rate, terms and due date.
Q: What are some of the benefits of refinancing my auto loan with Robins Financial Credit Union?
Monica: When you refinance your auto loan, you could secure a lower interest rate, ultimately saving you money in the long run. You also won’t have to pay an application fee. In some cases, during promotional periods, we will offer up to 90 days with no loan payment*, allowing you to keep a little extra cash in your wallet during that time. Our main goal at Robins Financial Credit Union is to help our members get the best terms on your auto loan that will help you save the most money.
Read our blog for the pros and cons of refinancing your auto loan.
Q: What does the refinancing process look like?
Monica: You can begin the refinancing process by starting an application online, over the phone, or in person at one of our local branch locations. Once you have provided the necessary documents, we are typically able to make a decision on the loan quickly. Upon approval, your rate for your new loan is locked for 30 days. This means that you're protected from potential interest rate increases during that period, giving you time to finalize your refinance without worrying about a rate change. Most of your documents can be signed electronically, which means we can get you driving toward savings even faster.
Q: What requirements must I meet to apply to refinance my auto loan?
Monica: There are several requirements you must meet to qualify for a refinance through Robins Financial Credit Union.
- You must be a current member or be eligible for membership with the credit union
- The auto loan amount you are refinancing must be a minimum of $5,000
- The year of the vehicle model you are refinancing must be a 2017 or newer
Q: What documents do I need to refinance my auto loan?
Monica: To refinance your auto loan, we will need a copy of your vehicle registration or tag receipt. You will also need verification of your auto insurance, your current rate from the original contract of your loan or monthly statement, and verification of income (i.e. your most recent paystubs). Lastly, you will need to acquire a payoff letter from your current lender that is good for 20 days.
Q: Are there any costs involved with refinancing my auto loan?
Monica: The only fee required to pay is the Title Fee which allows us to remove the current lien holder from the title of your car.
Q: What tips do you have for someone considering refinancing their auto loan?
Monica: If you think refinancing your auto loan is the best financial move for you, we want to make sure you’re fully prepared to make the process as seamless as possible. First, review your current loan. Collect information such as the length of time left on the loan, if there is an early payment penalty, the remaining balance and your current loan terms. Next, you’ll want to assess your current financial situation. You’ll want your credit score in the best condition possible to secure more favorable loan terms and potentially lower your interest rate. Lastly, gather all the necessary documents and paperwork needed to complete your application. Ensuring that you have the documents we listed previously ready to go will allow the application process to go smoothly and get you to a decision quicker.
Read our blog to determine if an auto loan refinance is right for you.
Next Steps
Auto loan refinancing can be a great way to save money, lower your monthly payments, or improve your financial flexibility. However, it’s important that you do your research and compare lenders before committing to a new loan. If you have further questions, our team is here to help!
- Apply for an auto loan refinance online or make an appointment at your local branch where a member of our team will walk you through the application step by step.
- Read our blog to understand why you should consider refinancing your auto loan with a credit union.
Read our other blog articles to help you gain the financial knowledge you need to succeed.
*Not all borrowers qualify; certain restrictions apply to receive up to 90 days no pay.