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Auto Loan Refinance: Is Now the Right Time?

October 5, 2017 by Space Coast Credit Union

You may be wondering if it’s the right time to refinance your auto loan. The answer: It depends upon your personal financial situation and the terms of your current loan. This post will help you to decide what makes the most sense in your specific situation.

First, think about why you want to refinance your loan. If it’s to lower the rate and/or payments, then the answer is typically straightforward. You simply look at the current auto loan rates and then use a calculator to determine what your new payment would be. If you can accomplish your goal of a lower rate or payment, then it almost always makes sense to refinance. Caution: If your auto loan is currently held at a financial institution other than SCCU, check to see if your lender charges a prepayment penalty, and factor that into your decision-making process.

There are other reasons you might want to refinance, including the customer service you’re currently receiving. Or, more accurately, the lack of quality customer service! If you’re unhappy with your current situation, know that better options definitely exist. At SCCU, we place our members and their needs first.

Here’s another factor to consider. Perhaps, when you originally got your loan, your credit score needed improvement and you were charged a higher auto loan rate. If you’ve since improved your credit score, you can often save money over the life of your loan by refinancing.

Maybe you have new financial commitments, such as the birth of a new baby, college expenses, or saving for a child’s wedding, so a lower payment would help with your new cash flow situation. Overall, because credit unions typically offer more flexible repayment terms, you may be pleasantly surprised by how much budgetary relief you can experience by refinancing your auto loan.

Although this reason is less common, here is another potential scenario: You paid a large down payment when you originally purchased the car or you’ve paid extra chunks of money to bring your balance down more quickly. In select circumstances, you may be able to refinance your car to get cash to use for another purpose.

Here’s one more scenario: Your lease is expiring and you now have the option to buy the vehicle. That is another form of auto loan refinancing.

Why Choose a Credit Union?

There are multiple reasons choosing a credit union makes good sense when it’s time to refinance. First, because credit unions are not-for-profit and created to benefit members, rates and fees are typically lower than those offered at banks. Meanwhile, rates paid on savings accounts, certificates, and the like are typically higher, so credit unions provide a win/win for members.     

Auto Loan Refinance: Benefits at SCCU

If you’re ready to save money, you can benefit from the low credit union auto loan rates we offer our members—and the process is fast, easy, and convenient. You can find more benefits here. If you’re ready to get started, you can apply online. Questions?

Call the branch nearest you:

     •  Brevard: 321-752-2222
     •  Broward: 954-704-5000
     •  Miami-Dade: 305-882-5000
     •  All Other Areas: 800-447-7228

Space Coast Credit Union
Members' Watchdog



  • SCCU Routing Number: 263177903

Space Coast Credit Union membership is open to all who work or live in Brevard, Broward, Flagler, Indian River, Martin, Miami-Dade, Monroe, Orange, Osceola, Palm Beach, Seminole, St. Johns, St. Lucie, or Volusia Counties in Florida.

  • Brevard: 321-752-2222
  • Broward: 954-704-5000
  • Miami-Dade: 305-882-5000
  • All Other Areas: 800-447-7228

*APR = Annual Percentage Rate. ^APY = Annual Percentage Yield.

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