Car ownership isn’t getting cheaper. From spiking insurance premiums to higher sticker prices, the cost of getting behind the wheel in 2025 continues to climb. If your current auto loan payment is starting to feel like a second rent check, it might be time to map out a smarter route—refinancing.
Auto loan refinancing can be a powerful tool to reduce your monthly payments, fuel your savings, and give your budget some breathing room. Discover what it means to refinance and why now might be the perfect time to get in the driver’s seat.
What is auto loan refinancing?
Auto loan refinancing replaces your current car loan with a new one—often from a different lender—to get better terms. You’re essentially trading in your old loan for one that fits your current financial situation better.
Benefits of refinancing
There are plenty of good reasons to consider refinancing your auto loan, especially if your financial situation has shifted. Here are a few of the biggest benefits to keep in mind.
- Lower interest rates drive savings over the life of the loan.
- Smaller monthly payments free up room in your budget and help you stay on cruise control financially.
- Flexible terms help you accelerate your payoff or extend the term to lower your monthly costs.
- Cash-out options can jumpstart other financial goals by tapping into your car’s equity if needed.
Switching from a lender you’re not loving to a local institution, like SECU, helps strengthen your community and can give you a better loan experience overall.
Why refinance now?
1. Lower interest rates
Lower refinance rates make this an ideal time to rework your auto loan. SECU’s current offer, as of April 2025, features rates as low as 4.24% APR for 36-month terms.
2. Rising vehicle costs
New car prices are likely to increase, partly due to tariffs on imported vehicles and parts. Refinancing your current loan could help you offset these rising costs without sacrificing your savings goals or the type of car you can afford.
3. Increased insurance premiums
With average full coverage insurance hitting $2,685 annually, up 12% from last year, every dollar counts. Lowering your loan payment can help absorb these bumps in the road and keep your finances steady.
4. Expensive repairs
New cars are packed with complex tech and proprietary parts, making DIY repairs more challenging—and more expensive. Tariffs on imported parts have driven up repair costs, adding another layer of expense to vehicle ownership.
Understanding the savings
Let’s say you have a $25,000 loan at a 7% interest rate for 60 months. You’d be paying about $495/month. Refinancing to a 4.24% APR could lower that to roughly $464/month—putting more than $1,800 back in your pocket over the life of the loan.
That’s a few extra car payments, a vacation, or even a cushion for those unexpected repair bills.
Refinance with confidence at SECU
At SECU, we’ve made refinancing simple, stress-free, and designed to save you money. Whether you’re looking to reduce your monthly costs or accelerate your payment schedule, our refinancing options are built to fit your life. We offer:
- Competitive rates
- Easy application process
- Flexible loan terms
- Trusted member service
Explore SECU’s auto loan refinancing options
Ready to see how much you could save? Explore SECU’s auto loan refinancing options and let our team help you make your next move with confidence.
