People Refinance Their Auto Loans At An All-Time High Call to action 4

NASHVILLE, TN (WSMV) – With the economic hardships of the pandemic, many people are trying to find ways to save money, and consumer experts have said people should consider refinancing their car loans.

Taking care of your vehicle comes at a cost, including gasoline, maintenance, and auto loans.

“I was the only one working at home,” said Elizabeth Castillo.

Castillo said he has a car loan on top of everything during the pandemic.

“I took care of the house, the food, the kids, all the bills, the car loan, and the insurance myself. So that’s what I looked for. Because it was difficult for me, ”Castillo said.

That is why she decided to seek refinancing of her auto loan.

“It was like $ 300 that I was saving per month, to be honest,” Castillo said.

The same goes for Columbia resident Sue Petty.

“It saved me $ 200 per month,” said Sue Petty.

According to a 2021 report from Rate Genius, Americans saved an average of almost $ 1,000.00 per year, the highest amount since 2016.

Likely driven by the pandemic, 16% more Americans requested refinancing of their auto loans in 2020 than in 2019.

“Everyone needs to think more about it,” said Chris Speltz, CEO of Rate Genius.

Speltz said, definitely consider refinancing if you need to make financial adjustments.

“People should think about it more often, but especially people who have recently increased their credit rating. Have made payments on time, or have reduced the amount of debt they have outstanding, ”Speltz said.

Likely driven by the pandemic, 16% more Americans requested refinancing of their auto loans in 2020 than in 2019.

“Everyone needs to think more about it,” said Chris Speltz, CEO of Rate Genius.

Speltz said, definitely consider refinancing if you need to make financial adjustments.

“People should think about it more often, but especially people who have recently increased their credit rating. Have made payments on time, or have reduced the amount of debt they have outstanding, ”Speltz said.

It’s a decision Petty and Castillo don’t regret.

“Right now, with the changing times, we never know what things are going to come up, and if you can save… to even put it back for some other need you might have,” Petty said.

Speltz also said auto loans are the third highest consumer debt after residential mortgages and student loans. According to Rate Genius, last year, people refinance their loans on average about 14 months after their initial loan. And the lender expects about six months of payments.

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