Before refinancing, someone with this type of loan needs to consider whether a lower interest rate is worth paying even more total interest. A steep prepayment penalty could wipe out any gains from refinancing, especially if a customer is already a year or two into the current loan. It's a very easy way to save money. Like many credit unions and smaller banks, CUNA Credit Union hawks low rates by sending refinancing solicitations to new car buyers. At CUNA Credit Union, a customer qualifies for a new car loan rate ranging from 7.15 percent to 10.75 percent if the loan is refinanced within three months of the car's purchase.
Some lenders allow new car loan rates within six months of purchase.
Many loan applications can be completed in 10 minutes or less. Some lenders give approval within 15 minutes. Others take an hour or a day. It's a time cost. It's a very easy way to save money.