The Best Practices for Refinancing Your Auto Loan in Tennessee
Whether you’re commuting down I-65 from Spring Hill or running errands around Columbia, your vehicle is a vital part of your everyday life. But if you are burdened by a high monthly car payment—perhaps from a dealership loan or a big-bank lender—it might be time to consider a change.
At Family Advantage Federal Credit Union, our motto is "Relax, you've got family." For our current members, you already know we are dedicated to helping you achieve your financial dreams. For our neighbors across Middle Tennessee who are looking for a financial institution that genuinely cares, we want to help you keep more of your hard-earned money.
If you are thinking about shifting gears on your vehicle financing, here are the best practices for refinancing your Auto Loan in Tennessee.
1. Check Your Vehicle’s Value and Equity
Before applying for refinancing, it's crucial to understand your vehicle's current value compared to what you owe. Lenders look at the loan-to-value (LTV) ratio.
The Family Advantage FCU Difference: We offer financing up to 100% of the purchase price on new vehicles, or up to the JD Power retail value for used vehicles (for qualified applicants). Knowing where your car stands on the JD Power retail index can give you a clear picture of your refinancing power.
2. Run the Numbers First
Refinancing is all about improving your financial health. You should always crunch the numbers to ensure that refinancing will actually lower your monthly payment, reduce your interest over time, or help you pay off the loan faster.
Best Practice: Take the guesswork out of your budget. Use our free, interactive loan calculator to estimate your new potential payments before you even submit an application.
3. Understand Lender Fees and Penalties
Some financial institutions sneak in hidden costs, such as application fees or prepayment penalties, which can eat into the savings you gain from refinancing. Always read the fine print of your current loan and the new loan you are considering.
The Family Advantage FCU Difference: When you finance or refinance with us, we never charge an application fee, and there are absolutely no prepayment penalties on any of our credit union loans. Please note that a small $40 loan documentation fee is required at closing, which can easily be added to your loan proceeds.
4. Prepare the Required Documentation
To make the refinancing process smooth and hassle-free, gather your documents ahead of time. You will typically need proof of income, details about your current Auto Loan (such as the payoff amount and your current lender’s information), and your vehicle's exact mileage and VIN.
Additionally, you will need to provide proof of coverage. For all financed vehicles at Family Advantage FCU, collision and comprehensive auto insurance is required.
5. Choose a Local Lender That Treats You Like Family
When you refinance with an out-of-state megabank, you are just an account number. When you refinance with a local Tennessee credit union, your success directly benefits your community.
By utilizing our local lending services, you gain access to competitive, affordable rates and flexible terms. Most importantly, you get personalized customer service from people who understand the unique needs of Tennesseans.
Take Advantage of Our Auto Refinance Special
There has never been a better time to make the switch. From now until May 31, 2026, we are offering an exclusive auto refinance special with flexible terms up to 84 months to help lower your payment!
When you refinance with Family Advantage FCU today, we will give you 2% off the current rate. With us, you will get the most out of every mile.
Here are the details you need to know before you apply:
Discounted Rates: Enjoy a full 2% off your current interest rate.
Competitive Minimums: The lowest rate available during this promotion is 4.99%.
Credit Requirements: This special is based on an approved credit score of 640 or above.
Exclusions: Please note that this offer excludes existing Auto Loans with Family Advantage FCU.
Visit our website for more information at myfafcu.org/
Ready to Steer Your Finances in the Right Direction?
If you are already a member of the Family Advantage FCU family and financed your car somewhere else, bring your loan home! Let our loan officers look at your current terms and see if we can save you money.
If you aren't a member yet, we’d love to welcome you. You can easily become a member online today to unlock all the benefits of a community-first credit union.
Have questions about the refinancing process? We are here to help. Reach out to our team or visit one of our convenient Middle Tennessee locations in Columbia, Spring Hill, Hohenwald, or Fairview today!