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Lower your payment

POSTED IN ARTICLES ON THURSDAY, OCTOBER 31, 2019

Save more when you move your auto loan to Veridian.

What's the interest rate on your auto loan? If it's higher than 3.29% APR, you could be paying too much.

Let's say you have a typical loan for a new car#: $32,000 financed at 6.00% APR for 60 months with a monthly payment of $619.  After a year,  you decide to refinance the remaining $26,000 with Veridian at 4.75% APR. The first step is deciding whether you'd like to prioritize a lower monthly payment or paying less interest.

 Lower your monthly payment

 Save more on interest

If your day-to-day budget feels tight, you'll likely want a lower monthly payment. You can refinance at the same term as your original loan, stretching out your reduced principal over a longer period. That gives you a smaller monthly payment but reduces your savings on total interest paid.

  • Loan amount: $26,000
  • Term: 60 months
  • Rate: 4.75% APR
  • Monthly payment: $494, or $125 less
  • Total interest: $3,304, a savings of $49

If you'd like to pay less in the long run, choose a term that matches the time remaining on your original loan – or go even shorter to really save. This can be a great choice if your income has increased since you took out the loan. Your monthly payment might not change much, but you'll save on total interest.

  • Loan amount: $26,000
  • Term: 48 months
  • Rate: 4.75% APR
  • Monthly payment: $604, or $15 less
  • Total interest: $2,634, a savings of $719

And remember, Veridian has rates as low as 3.29% APR, which could mean even bigger savings no matter which route you choose.

To explore your options, fill out our auto loan survey. You’ll get $5 just for telling us about your auto loan, and you can find out how much money you could put back in your pocket by refinancing with us.

Loans to fit your life – that's the value of Veridian.

Take the survey, get $5

APR = Annual Percentage Rate. Includes Loyalty Discount of 0.25% APR when enrolled in direct deposit of net income and automatic loan payments using your Veridian account. Borrowers will lose Loyalty Discount if they fail to meet qualifications during loan term. For a $15,000 auto loan with a term of 60 months and 3.49% APR, the monthly payment will be $273. Rates, terms and conditions subject to change and may vary based on qualifications, including creditworthiness and loan-to-value ratio, as well as age and mileage of the vehicle. All loans subject to approval. See Veridian for details.

#based on Q1 2019 statistics from LendingTree

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