Save a lot of money with auto refinance - now is the time

Bob and I closed an auto loan refi today.  We refinanced it with a local credit union and saved over $100 per month on the payment.  Here's what we did.  We went from a 5% loan to a 3.45% loan.  For newer model years, rates are as low as 2.99%.  Our monthly payment went from  $397 pay to $274. We paid $5 to join the credit union, plus $75 to the tax collector and $29 for doc stamps.  So it cost us $109 and about an hour (half an hour giving our application to an 800#, and half an hour today at the local branch to sign everything) to save $3,293.  That is figured by taking 30 new payments at $274 which is $8,220 compared to our original loan which had 29 pymts left at $397 which is $11,513. The total time it took was one week and one day.

A side note is that I didn't realize how easy it was to join a credit union.  We were eligible to join the one we used because we lived or worked in a zip code that they served.  We didn't have to work for any particular employer or be members of any affiliated group.

So-- if you have an auto loan, call a local credit union and ask if you could lower your rate.  They can tell you right away if it is worthwhile and most of the time they can qualify you on the phone.  Have your personal credit info handy, your exising loan info, and your vehicle info (make, model, vin # and mileage).

Let me know with a post if you try this and what happens!  Post or e-mail me at kcormiercpa@gmail.com with any questions.

-Kathy

Hello!

Hi friends -- it's a crazy world out there!  This blog is to help us make sense of money matters that we encounter in our households...I have learned some tips along the way in my business, and want to share them.  I also welcome questions or discussions, so we can all learn from each other!

I've been a CPA for 25 or so years, and have worked with hundreds of clients and friends on taxes and financial matters.  These days it is more important than ever, with the economy, the demands placed on us, and the fact that many of us are thinking about the retirement years, although those days may still be a way off.  Right now it seems, it's just the day to day running of the household that keeps us hopping.  But as for our money matters, the old fashioned notions our parents banked on (no pun intended) don't always work for us anymore, so we have to get smart about our finances.

Please blog with me!

-Kathy