Why Refinance Your Vehicle Loan?

Getting a new car is an exciting decision, but it can become stressful dealing with the finance office if you do not have a pre-approval letter. Sometimes, you may feel the path of least resistance is just to take the dealer financing, especially if they offer a 0% interest rate or $2,500 off the purchase price. Whatever the case, just keep your new ride’s documentation handy and refinance with Interior Federal later.  We’re here for you!

Some of the top reasons members choose to refinance with Interior Federal are:

1. Lower Interest Rates – Credit unions are not-for-profit institutions, meaning they often provide lower loan rates compared to banks. We’re currently offering as low as 5.19% APR on used car rates.
2. Fewer and Lower Fees – Many credit unions charge fewer upfront fees, making refinancing more cost-effective. For example, our GAP (Guaranteed Asset Protection) policy is just $467, compared to dealer rates that are upwards of $1,500. Our goal is to help you save money.
3. Easier Approval Process – Credit unions tend to consider the full financial picture rather than just credit scores, making it easier for some borrowers to qualify. We always try to qualify you for the lowest rate.  If you have our Digital Spend Account, you could qualify for up to .25% off on your next auto loan!
4. Personalized Service – Credit unions focus on member satisfaction, offering a more tailored and supportive refinancing experience.  We’re just plain nice to deal with.
5. Quicker Response Times – With fewer bureaucratic hurdles, credit unions often process refinancing applications faster.  We usually tell you the outcome of your loan application within hours.
6. Flexible Loan Terms – Many credit unions offer more adaptable loan terms to fit individual financial needs.  We can refinance a car loan for up to 84 months (that’s 7 years) to get you the lowest possible payment.

It’s nice to have all of your financial services under one umbrella with your Credit Union.  We can get you the best discounts that way.

Process to Refinance Your Existing Auto Loan With Us

When applying to refinance a loan, it is a very similar process to a regular auto loan application. The one difference is the first question where you select “Refinance” instead of “Purchase.”

To complete the application, we will need five documents:

1. Vehicle Registration – This is normally kept somewhere in your car.
2. Proof of Insurance – This is also normally kept in your car.
3. Pay Stub – These are normally electronic which you can access through your employer’s HR system.
4. Title – Since you are financing the vehicle, this is most likely in the hands of the current lien holder. The Credit Union will assist with the titling process and request this on your behalf, by having you complete a limited power of attorney (POA) to ensure peace of mind. However, should you mistakenly receive it in the mail, please forward it to us at the following address:

12201 Sunrise Valley Drive

BA208 MS700

Reston, VA 20192-0002

5. Pay-off Letter – Contact your current financing company to request a 14-day pay-off letter. This is a standard request and should be something they can provide quickly. Some companies may not provide a 14-day letter; however, they will normally include the daily accrual of interest, and our team can calculate the amount of your new loan based on that.

Once you have these 5 things, simply upload them to the loan portal after you have submitted your application.  For questions, contact us at 800-914-8619.

We hope this blog empowers you to get started with a refinance by seeing why our members love working with us and just how easy a refinance can be!

*External Loans Eligible for a Refinance Only

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