Reader Question: How does Auto Refinancing Work?

Refinancing your auto loan is a very simple process. Basically, it involves paying off your existing loan with a loan from another lender, at a more favorable rate.

The first step in refinancing is to find a lender who is willing to offer you a lower interest rate.  According to Danny Trahan,  V.P. of Lending, “refinancing your vehicle for a lower rate of interest or shorter term can significantly reduce the cost of financing your vehicle.” Even those who got a good rate on their initial loan can still gain by refinancing, especially times like right now when rates are as low as 2.75% APR* (new) and 3.75% APR* (used) here at First Castle.

Our application process takes only a few minutes, and once approved, we will take care of all of the details for you. You can even submit an application online.

You can save anywhere from hundreds to thousands of dollars by refinancing. The amount depends on a few factors, such as how much you owe on the loan, the initial interest rate, and the refinanced rate.

Not sure if you can save money by refinancing? Check out our loan calculator to determine your potential savings.

Feel free to call us at (985) 867-8867 and we will do our best to help save you money!

Federally insured by the NCUA.

*APR = Annual Percentage Rate.  Rates are based on individual credit score. Your actual rate may vary.