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

Taking care of your vehicle comes at a cost, including gas, maintenance, and car loans.

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

Castillo said having a car loan on top of everything during the pandemic added up.

“I was dealing with the house, the food, the kids, all the bills, and the car loan and insurance by myself. So, that’s why I searched. Because it was hard for me,” Castillo said.

It’s why she decided to look up refinancing her auto loan.

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

The same goes for Columbia resident Sue Petty.

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

According to a 2021 report from Rate Genius, Americans saved on average close to $1,000.00 a year, the largest amount since 2016.

Likely driven by the pandemic, 16% more Americans applied to refinance their auto loans in 2020 than in 2019.

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

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

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

Likely driven by the pandemic, 16% more Americans applied to refinance their auto loans in 2020 than in 2019.

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

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

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

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

“Right now, with how times are going, we never know what things are gonna crop up, and if you can save..to even put it back for another need you may have,” Petty said.

Speltz also said auto loans are the 3rd 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 original loan. And the lender looks for about six months of payments.

WSMV.com is now with you on the go! Get the latest news updates and video, 4WARN weather forecast, weather radar, special investigative reports, sports headlines and much more from News4 Nashville.

>> Click/tap here to download our free mobile app. <<


Copyright 2020 WSMV (Meredith Corporation). All rights reserved.

Recommended for you

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.