Six tips to Make money off of your St. Louis auto loan

If you’re looking for an auto loan in St. Louis, rest assured — there are numerous options available to you. You’ll need to put in the extra time to thoroughly research your options, but with so much to choose from, there is no need to settle for high interest rates and costly application fees. In fact, you could actually make money off of your St. Louis auto loan. Check out these six tips so that your money can be better spent at a Cardinals game, or on a day trip to the Saint Louis Zoo.

1. Take the Rebate

Many St. Louis financial institutions will offer specials on auto loans that include either a lower interest rate or a rebate. “Consumers can often take advantage of dealer rebates, which can save hundreds of dollars in the purchase price,” said Jenny Remes, certified educator in personal finance with Arsenal Credit Union.

Although you might have a higher interest rate, refinancing is always an option, especially if you didn’t qualify for the best rate available to you. Choosing to take the rebate will lower the overall loan balance — which will save you the most money.

2. Refinance for a Lower Rate

If you have recently purchased a vehicle through financing offered by a dealership, chances are you might be paying too much in interest. Take advantage of the resources available to you, shop around and compare rates. “We offer many helpful resources on our website and in our branches, including free loan calculators, websites that provide auto values and various articles provided by the Federal Trade Commission, on buying a new or used car, understanding vehicle financing and more,” said Remes.

Depending on the balance of your loan, lowering your interest rate could result in you saving thousands of dollars over the life of the loan.

3. Change Your Payment Plan

One way to save money over the life of your loan is to pay more than once per month. Whether you make an extra payment twice a year or pay biweekly, this can reduce the amount you will pay in interest. This free tool can help you compare different payment plans so you can save the most while staying within your budget.

4. Ditch Fees and Application Costs

How much a loan actually costs you is based on more than interest. Your origination and monthly fees are all calculated into your APR. You can compare the true cost of various auto loans using a loan calculator.

5. Get Interest Reimbursed

If you really want to make money on your St. Louis auto loan, try out the interest-refund program at Arsenal Credit Union. If you take out an auto loan with them for more than 48 months, make on-time automatic payments and have a checking account with the credit union, they will give you back 12 months of interest after your loan is paid off.

6. Improve Your Credit Score

If you are in a high-interest auto loan because of poor credit, take a few months to get caught up and improve your credit score. Even a slight tick upward can help you qualify for a lower interest rate when you go to refinance.

Whether you are looking for a new car loan or you want to refinance the one you have, it is never too late to lower your monthly bill. By reducing your interest rate or taking advantage of the interest-refund program, you can both save and make money on your auto loan for very little effort. Use that money to buy Cardinals tickets or go on a shopping spree — just don’t waste your money on a high-interest auto loan when you don’t have to.