refinance a car with ALEC
When is it best to refinance your loan?
At ALEC, we make auto financing simple and straightforward. We understand that sometimes you already have auto financing, but want to save more money. If you’re currently paying a higher rate on a loan at another financial institution, consider refinancing your original loan. Refinancing your car loan comes with many benefits, but only when you take advantage at the right time.
Here are some factors to consider before refinancing your auto loan.
- Your vehicle meets the refinancing requirements: Check with the lender you’re considering refinancing through to determine whether your car meets the vehicle age, mileage, and balance requirements.
- You don’t owe prepayment penalties: Some auto loans will charge you a prepayment penalty if you pay off your vehicle early. Often the prepayment penalty will cancel out any savings you’d get from refinancing, so you want to compare these numbers to determine the best option.
- You get a lower interest rate: One of the primary benefits of refinancing your loan is to get a lower auto loan rate and save money on your monthly payment and, in the long run, over the life of your loan. If you can secure a lower interest rate than you currently have, you’ll be in a better place financially.
- Your financial information is the same or better: You want to consider your income and your credit score vs. when you first got your auto loan. If your income and credit score are the same or have improved, you’re more likely to secure better terms. Though in some situations, you still might be able to refinance your auto loan without this, especially if you go through a credit union.
Auto Loan Rates
|Type||Loan Terms||APR* as low as 1|
|New Auto Loans 2,3
2022-2023 less than 5,000 miles
|Up to 36 months|
|Used Auto 2|
2021-2022 with over 5,000 miles
|Up to 36 months|
Loan Refinance Calculator
All examples are hypothetical and are for illustrative purposes. Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy with regard to your individual circumstances.