How to Know When It’s Time to Refinance Your Auto Loan
Refinancing your Auto Loan can be a smart financial move—especially when market rates drop or your personal financial situation improves. Whether you're aiming to lower your Auto Loan payment, secure a better interest rate, or adjust your loan term, now may be the right time. At Family Advantage FCU, serving residents across Tennessee, we guide members step-by-step to ensure smart savings and seamless transitions.
What Is Auto Loan Refinancing?
Refinancing your Auto Loan means replacing your existing car loan with a new one—typically with better terms, such as a lower interest rate or a more affordable monthly payment. You might refinance to save money over time, adjust your payment schedule, or switch to a lender with better customer service. However, it’s essential to compare overall costs, including any fees or changes in your loan term.
Signs It’s Time to Refinance Your Auto Loan
Interest rates have dropped – A lower market rate can reduce your current APR. If your rate is even just 1% higher than today’s, you could see significant savings.
Your credit score has improved – A higher score can qualify you for better terms.
Your monthly payments are too high – Refinancing can ease your cash flow (lower Auto Loan payment).
Your loan is still relatively young – with more than two years remaining and a balance exceeding $5,000 - and refinancing often makes financial sense.
You originally financed via dealership – Dealership loans may carry extra fees and higher rates; refinancing could give you a better deal.
Car Loan refinance tips: Always calculate long-term impact—extending a loan reduces monthly payments but can increase total interest.
How We Can Help at Family Advantage FCU
As a local credit union rooted in Tennessee, we focus on serving members with competitive rates and personalized attention.
Whether you're refinancing or applying for a new loan, explore our Lending Services to review your options. Want to know how much you can save or what your new payment might be? Try our Loan Calculator for instant insights.
How to Refinance Your Auto Loan With Us
Review your current loan terms (APR, balance, remaining term).
Use our Loan Calculator to estimate new payments and savings.
Compare your existing agreement with this one—factor in any fees or term changes.
Have questions? Visit or contact us in our branches and receive personalized assistance in person.
Tips to Maximize Your Savings
Account for costs: Refinancing can include fees or penalties—ensure the savings outweigh these.
Avoid term resets: Extending your loan for small monthly savings can lead to paying more interest over time.
Shop around: Compare offers across lenders to ensure you get the best deal.
Final Drive Toward Savings
If you're aiming to refinance an Auto Loan for a lower monthly payment, better rate, or improved flexibility, Family Advantage FCU makes it easy—right here in Tennessee. Start with the Loan Calculator, check our services, or drop by one of our local branches. Let’s help you drive smarter, not just farther.