Have you ever wished you had your auto loan at a more economical interest rate and paid much smaller monthly payments? You are not alone.
With the pandemic taking a toll at our financial situations and with the rising costs of cars (38% to 70% in the past ten years), lower to middle-class families also hoped for more favorable car loan payment terms.
Luckily, getting lower interests and monthly payments is not impossible. Thanks to the benefits of auto loan refinancing programs.
If you’re still undecided about whether you should refinance your existing auto loan obligations, here are some perks of refinancing auto loan in Bergen & Passaic Counties to help you out.
1. Get a Cash Back for every Successful Refinanced Auto loan
Yes, you’ve read that right.
Greater Alliance Federal Credit Union (GAFCU) will give you a 1% cash back based on the proceeds of your refinanced loan.
That means, if the total amount you receive for the refinanced auto loan is $20,000, you will get $200 cash on the spot.
Don’t get too excited, though. This cash back arrangement only applies to auto loans from another lender that you bring in to GAFCU. Therefore, if your current auto loan is with us, you may not qualify for the cash back.
Likewise, there is a $1,000 cap on this offer. Hence, the amount of cash you’ll receive may depend on what our auto loan refinancing calculator gets and may still be subject to applicable taxes.
Even so, getting a $200 cash or so from your refinanced loan is better than getting nothing, especially in trying times.
2. Shop Around without paying anything
Have you ever heard of origination fees?
These are application fees ranging from 0.5% to 1% of the loan amount. Most lending institutions will charge their clients for origination fees to cover handling or underwriting costs.
For instance, if you’re looking to refinance a $20,000 auto loan, you’ll probably pay $100 to $200 for origination fees.
Most clients are hesitant to shop around because of such fees but don’t despair.
GAFCU will not charge you anything for completing an application. So, you’ll have peace of mind to shop and look around.
PRO-TIP for Rate Shopping:
When shopping for better auto loan refinancing rates, remember to submit your applications within 14 days.
Do not forget this 14-day rule. Otherwise, you’ll end up having multiple loan applications which can hurt your credit score later.
If you’re careful of the leeway, rate shopping is a great way to find the best rates when refinancing auto loans. It also gives you confidence that you’ve surveyed everything before committing to the real thing.
3. Access Competitive Auto loan Refinancing Terms
Getting access to better auto loan terms may be difficult, especially if you haven’t established your creditworthiness yet. This is also why first-time car owners become victims of poor auto loan terms on their initial try.
GAFCU understands these circumstances. Hence, we offer our auto loan refinancing rates in a much favorable light now that your creditworthiness has improved.
Our auto loan refinancing rates start at 2.99% APR for brand-new cars and 3.24% for pre-owned or used vehicles, so you can save more cash for satisfying your other obligations.
Most people think that you need a high credit score to secure lower refinancing rates, but that’s only part of the truth.
While a high credit score is indeed a factor for getting low APRs, other considerations such as your income to debt ratio also matters. For this reason, GAFCU doesn’t discriminate on interest rates. We give all our clients a chance to avail of much favorable rates and terms.
Meanwhile, if you still need more time to improve your financial health, we could also provide you with longer auto loan payment terms.
However, please note that longer repayment terms can mean higher interest payments over your loan’s life. You might not quickly notice it, but paying higher interests can be detrimental to your financial situation in the long run.
4. Apply Online at Your Convenience
Afraid of going out because of the current pandemic situation?
Don’t worry, GAFCU will take care of the nitty-gritty details for you while you stay safe in the comforts of your home wherever you are in the Bergen and Passaic County neighborhood.
Instead of visiting our branches in Paramus, Hackensack, and Paterson, when refinancing an auto loan, lessen your risk of being exposed to the virus by applying for an auto loan online.
In case you’re wondering how you’ll sign important documents, GAFCU offers DocuSign—a fast, secure, and State-approved application where members can provide their electronic signatures on important documents.
Once you complete all the requirements for your approved refinancing request, the loan proceeds will immediately be credited to your savings account.
The best thing about this whole online auto loan process? All of these can be done from the comfort of your home.
5. Partner with a Reliable Local Lender
Greater Alliance has been serving Bergen and Passaic counties for over 80 years, which means we’ve had a lifetime of getting to know all of Bergen & Passaic communities.
As being part of these communities, we know how it is like to live here and understand the financial needs of the communities we serve.
When you partner with us for your auto loan refinancing needs, you don’t only support your local community credit union like ours. You also reward yourself with a reliable financial partner that knows and understand you better than anyone else.
Refinancing auto loans in Bergen or Passaic counties has its perks made even more convenient and secure with Greater Alliance.
If you decide to save on your auto loan by refinancing it, always double-check your monthly payments, especially if you’re refinancing your loan near its due date to avoid charges.