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Auto Refinancing Quiz

Wendy Massengill

Created on October 20, 2025

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Transcript

Refinancing Auto Loans

Quiz

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The best idea is to go to a credit union!

Credit unions are non-profit organizations, and are made for lending. They may prefer that you are their member, but it is not always required. If you already have a credit union, contact them to ask about auto loan preapproval or refinancing. If you don't have a credit union, check out our website and the credit unions we recommend!

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You need to have a good credit score so you can qualify for a better rate.

It's good to have your credit score around 720 before you consider refinancing your car! If your score is lower than this, you may not qualify for a lower rate.

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It'd actually be $25,562 extra in just interest.

You're going to be paying $55,562 for a $30,000 car. You're basically buying the same car twice with a low credit score. However, if your loan was at just 6% instead of 23%, you'd be saving over $18,700 in interest!

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With predatory loans, an average of 1 in 3 vehicles is repossessed.

Buying a car from a buy here-pay here dealer, or even getting into a bad subprime auto loan, can be risky. You're basically paying twice as much for the car, and missing payments can lead to your car being repossessed.

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