Space Coast Credit Union - www.sccu.com - 321-752-2222
Perspectives December 2012
Are you looking for a way to free up your finances this holiday season? Need some extra cash for shopping? Did you know one of the easiest and most cost effective ways to do this is to refinance your auto loan?
One of the most popular services offered by Space Coast Credit Union is the refinancing of auto and truck loans from other lenders. You may have considered this yourself, but wondered if it was worth the time and trouble, how much it costs, and what you have to do.
Here are a few things to know about refinancing a vehicle loan from another lender:
- You don’t have to talk to your current lender to arrange the refinancing. SCCU will take care of everything needed to transfer your loan. Occasionally, a lender may require a call from you to verify that you want SCCU to pay off the existing loan. Your Express Sales Associate will advise if this is needed.
- You don’t need to have the details of your current loan available. SCCU can get all the needed information as part of the application process. The only exception is if you are refinancing a loan you took out very recently that is not yet appearing on your credit report. In that case, you should have the documents for your current loan handy.
- It only takes a few minutes to apply, and you can do it from the comfort of your own home. You can call and speak to an Express Sales Associate Monday through Saturday. Your associate can answer any questions you may have and take your application in just a few minutes. If you prefer, you can apply online anytime by using our secure loan and credit application.
- We can usually close your loan the same day you apply. Signing your loan documents typically takes about 10 minutes. You may choose a branch that’s convenient to you to sign your loan documents. If a branch visit is just not convenient, we can mail the loan documents to you (a fee may apply for this service).
- There is no application fee. If, for some reason, you decide not to refinance with SCCU, all it will have cost is a few minutes on the phone.
- Typically, you will not be asked to put any money down. Occasionally, if you are significantly “upside down” in your current loan, or if we can give you a better rate by reducing your loan to value, you may be asked to put some cash towards the loan. This is entirely your decision.
Why are we confident that we can give you a lower rate or monthly payment than you have with your current loan at another lender? First, SCCU’s rates are always competitive. Second, there’s a practice called “buy rates” that is widely practiced by other lenders for financing arranged at the vehicle dealership.
This practice means that you may not have received the lowest rate possible for your loan. Buy rates allow a dealership to mark up the rate of interest that the lender is charging and pass that markup along to you. For example, let’s say a lender is charging 2.99% for a particular loan. The dealership can add a percentage or two and keep the difference. Another way to think of this is that the lender has a “wholesale” price, but the borrower pays the higher “retail” price. While this does not occur with every loan, isn’t it worth a short phone call to see if you can get the low “wholesale” rate you deserved in the first place with SCCU?
With historically low interest rates, there’s never been a better time to consider refinancing. And with the holidays upon us, you’ll certainly appreciate the extra cash in your account with a lower rate or payment, and you can even take advantage of no car payments until 2013!* So what do you have to lose? The only risk is the 5-10 minutes it takes to complete the application. Call SCCU Express Sales today to see just how easy it is.
While you’re at it, help us spread the word! If you have friends or family members who could benefit from a lower rate or monthly payment for their vehicle loan, why not suggest they call SCCU? We can process a loan application for anyone who lives or works in the communities we serve, even if they are not currently members!
Charity Clifford
Director, Express Sales
SCCU Members' Watchdog
SCCU Members' Watchdog represents two things: Our philosophy to always watch out for our members' best interests by providing products and services with No Lies, No Rip-Offs, and No Time Wasted, and a rating system that allows our members to easily let us know how well our products and our service delivery are meeting their needs.
We encourage you to take a moment to read what other SCCU members have to say about their auto loan refinance experience and then contact us to see how we can help you today!
Plus, don't miss your chance to win a $200 Visa® gift card with our SCCU Members' Watchdog Spotter Contest just by driving around! Visit SCCU.com/spot for complete details and to check weekly winners.
Read the December issue of Connections
*Optional. Interest accrues from date of contract. Qualified borrowers only. First payment may be deferred up to 90 days and is dependent upon when your loan closes, yours may be 90 days or less. Deferred payment not available for refinances of existing SCCU auto loans.
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