These days, any extra money can come in handy. If you're trying to cut costs wherever possible, refinancing your car loan can free up some cash. Compare ...
Finance a new car at a bank in May 2007
New car amount financed $20,000
Average commercial bank new-car rate 8%
Term (years) 5
Monthly payment $405.53
Refinance your loan at your credit union in May 2009
Amount refinanced $12,941
LifeWay Credit Union used-car rate 3.75%
Term (years) 3
Payment $380.63
Monthly savings $24.90
Savings over life of loan $896.40
In this example, by refinancing you'll save almost $300 a year. That's money you can put toward paying down other debt or stashing away in an emergency savings fund.
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