Auto Loan Refinancing

a family is smiling inside their SUV

Why Refinance Your Auto Loan?

As you’re working toward paying off your existing auto loan, there are reasons why you might want to consider refinancing your auto. Before refinancing, make sure you’ll save money by calculating your interest savings and comparing it to the total costs of each loan. Remember to take fees into account.

Lower Your Interest Rate

You can get a lower interest rate for several reasons. Has your credit history improved since your original loan signing, or have interest rates gone down? No matter the reason, refinancing your car at a lower interest rate can help you pay off your loan for less money.

It’s best to refinance your car as early as possible. Most auto loans are amortized, meaning your interest is built into the payment. So, you wind up paying most of the interest costs during the beginning of the loan term. The sooner you move to refinance your auto loan, the sooner you’ll start saving money.

Lower Your Monthly Payment

When you decide to refinance your car loan, it pays to consider your monthly car payment options. If your goal is to pay less interest overall, refinance at the better rate and keep the same loan term. With a lower interest rate, you’ll reduce your payment amount and pay less interest in total.

If you need to find more room in your monthly budget, refinancing into a longer-term loan can help you drastically lower your payment amount. Your monthly finances will be more manageable, and you still have the option to pay extra when you can. Just keep in mind, that with the extended loan term, there is the potential for increased interest payments.

Whether you choose to stick with your original repayment period or change your term to achieve a more ideal payment, remember that you’ll benefit most by refinancing your car early into the original loan.

Simplify Your Finances

Life can get busy. You have enough things to stay on top of every day. We can make keeping track of your car loan so much easier. You can add your auto loan to your current membership and see it alongside your checking and savings accounts when you log in to your online and mobile banking accounts. Plus, you can easily set up recurring transfers or automatic payments, so you never miss a due date.

Mistakes to Avoid with Auto Loan Refinancing

Although lowering your monthly payment and saving interest are both good reasons for refinancing your car loan, be cautious or you could wind up paying more on your loan amount. Here are some common mistakes to avoid with a refinance:

  1. Increased Interest Payments: Moving from a 36-month car loan to a 60-month car loan will reduce your monthly payment, but don’t make that decision lightly. An extended term will increase your interest payments and cost you more in the long run.
  2. Getting Upside-Down: You can owe more for your car than it’s actually worth if you extend your financing too far. Make sure you consider the value of your car before looking into auto loan refinancing. Cars with high mileage or damage may have a lower resale value.
  3. Prepayment Penalties: Before refinancing your car, read the terms and conditions of your existing car loan to make sure there are no prepayment penalties.
  4. Waiting Too Long: If you decide the situation is right to refinance your car loan, move fast. Rates are generally lower on newer vehicles. Some lenders won’t offer auto loan refinancing after a car hits a certain age.

Estimate Your Savings with our Refinance Calculator

Check Your Credit History

When you’re looking to refinance your car, check your credit reports and credit score. Those scores will tell you where you stand as an applicant. You can get a free credit report from all three consumer credit bureaus (Experian, TransUnion, and Equifax) by visiting AnnualCreditReport.com. You can also get a free copy of your Experian credit report every 30 days.

If you have bad credit, you can take steps to increase your credit score:

  • Pay down high credit card balances. Try to get your balances at 30% or less of the cards’ borrowing limits.
  • Make all your debt payments on time.

You can apply for auto loan refinancing even with bad credit, although it may be more difficult to get approved. If you have a lower credit score, you’ll find that interest rates are generally higher. Depending on your credit history, some lenders may have additional requirements, such as having a cosigner on the loan or adding a GPS device to your vehicle, as a condition of the loan approval.

How to Apply

Apply Online

Apply for your car loan online in about 10 minutes, and you will receive a decision within 2 business days.

Please have the following information available for each borrower on the loan:

  • Social Security number
  • Valid Photo Identification
  • Date of Birth
  • Physical Address

Apply for Car Refinancing

Apply In Person

For purposes of social distancing, we currently recommend that you submit your application online. Please call us at (717) 569-7180 or (888) 318-4222 if you have any questions or would like to speak with a lender before applying. If you would like to apply in person, please call or contact us to schedule an appointment.

Current Car Loan Rates

Automobile and Motorcycle Loan Rates

Maximum Loan Term APR (based on Credit Score)
750 700–749 660–699 620–659 Under 620
Model Years 2015-2021
36 Months 2.49% 3.49% 4.49% 7.49% 10.49%
48 Months 3.49% 4.49% 5.49% 8.49% 11.49%
60 Months 3.49% 4.49% 5.49% 8.49% 11.49%
72 Months 3.99% 4.99% 5.99% 8.99% 11.99%
84 Months 4.49% 5.49% 6.49% 9.49% 12.49%
Model Years 2009-2014
36 Months 4.49% 5.49% 6.49% 9.49% 12.49%
60 Months 5.49% 6.49% 7.49% 10.49% 13.49%
Model Years 1997-2008
60 Months 6.99% 7.99% 9.99% 13.99% 15.99%

Terms Available

Vehicle Year Amount Borrowed Maximum Loan Term Available
1997–2021 Any amount + 36 Months
1997–2014 $5,000 + 60 Months
2015–2021 $5,000 + 48 Months
2015–2021 $10,000 + 60 Months
2015–2021 $20,000 + 72 Months
2015–2021 $25,000 + 84 Months

Apply for Your Loan Online


Is your current APR lower than our advertised rates?

Ask Us About Rate Match

We know that you trust your credit union to provide you with excellent member service and products to help you meet your financial goals, but choosing a lender sometimes means taking the better rate, no matter who is doing the financing. But now, with rate match, you don’t have to go anywhere else!

If you’ve found a lower rate with another lender, bring your loan to Lanco FCU for the same low rate.†† Call (717) 569-7180 to ask us about matching your rate!


Advertised rates are accurate as of 10/1/2021 and are available for members meeting standard credit criteria. Maximum loan amount is determined by vehicle age, vehicle value, and borrower qualifications. Payment example: A $10,000 loan at 2.49% APR would require 36 monthly payments of $288.57.

††Lanco Federal Credit Union may, at its discretion, match the rate offered by another lender (“outside offer”) for a loan of like terms at Lanco FCU. To be eligible for a rate match, the applicant must meet the qualifications of the outside offer and provide documentation of the offer to Lanco FCU. Rate matching is not available if the outside offer is a promotional discounted rate, is less than 2.49%, or for lines of credit, credit cards, or business loans. Offer current as of 7/1/2021 and may be changed at any time.