Auto Loan Rates Drop, Clearing the Path for Huge Savings
New savings potential for auto owners in 2020.
(Washington, D.C.) – Once again, the US Federal Reserve has just lowered interest rates in an effort free up more cash to promote consumer spending. It was a surprise to economists and consumers alike, but the reduction has prompted hordes of people to refinance their cars at lower rates, potentially saving them hundreds of dollars each month.
After a series of small, quarter-point reductions over the course of 2019, this drastic .50% interest rate cut in response to the slowdown of the economy (sparked by coronavirus fears) has presented a once in a lifetime opportunity!
Many people don’t realize that refinancing your car is an option!
Refinancing your car loan involves taking on a new loan to pay off the balance of your existing auto loan. Most loan payments are a fixed monthly cost and don’t change for the life of the loan, often 3, 4, 5, or even 6 years. People generally refinance their auto loans to take advantage of lower rates, which then contributes to significant monthly savings.
It’s hard to believe that millions of people in the US could reduce their monthly financial burden by using new online tools, like Standard Auto Financing, to see how much they can save. In most cases, consumers don’t have to speak to a loan agent or meet with a dealer in order to see if they can save money. We encourage our readers to see for themselves.
When is the best time to refinance your car?
It doesn’t often make financial sense to refinance your car at a higher rate. Also, if you’ve been in your current loan a long time, paying the remaining balance over time might save you money every month – but you need to be aware of how much total interest you are paying on the old and new loan.
Often, the best time to refi your car is when interest rates have dropped. Even a small decrease in interest rates, say 1% or 2%, could result in significant savings over the life of the loan. But nobody knows for sure when rates will increase again. That’s why tens of thousands of people are using new savings calculators to see how much they can save. It should only take you about 90 seconds!
Want to see how much you can save? Here’s how:
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