Reset Your Rate – is it worth it for up to 1%?

August 4, 2026

Up to 1%…not a thrilling number, we know. “Why would I spend time and energy refinancing for ‘up to 1%’?”

Well. Let’s focus less on the one and more on “percent”. 1% of a dollar is only a dime. But 1% of one hundred dollars is one dollar!

Let’s run some numbers and take this for a test drive.

Say you had a car loan for $26,000 (Kelley Blue Book averages the cost of a used car to this amount in 2026). And let’s say you’re paying 9% interest (US News & World Report, citing a report from Experian, lists a borrower with a 700 credit score-around the national average-paying 9.98% interest) on a 60-month (5-year) loan. That means you’re paying about $540 per month for your used car.

However, let’s refinance up to that 1% we began with, changing your rate from 9% to 8%. Still 26,000, still 5-years. Now you’re paying $527 per month; a savings of $13. “Big deal, what does $13 get me?” you say. Well, let’s talk big picture. $13 per month times 12 months is $156 per year. On a 5-year loan, that’s $780! No small sum there!

But let’s keep crunching numbers. Let’s say you’ve been paying your loan diligently for a whole year. At the initial monthly payment of $540, in one year’s time you’ve paid $6,480. Now you decide to refinance. So you now owe $19,520 still. Let’s revisit that 8% interest rate we “reset up to 1%” to, previously. Still a 5-year term. Now your monthly payment has gone from $540 to $396. This decision has saved you $144 each month, $1,728 each year and $8,640 over the total of the loan!

“Up to 1%” may not sound exciting at first glance, but after running the numbers, $140 per month, or $1,700 per year, we’re certainly interested in driving that money off the lot, and we hope you are too

Disclosures

Federally insured by NCUA.

Offer valid on loans refinanced from lenders outside Superior Choice Credit Union. Save up to 1.00% APR (0.75% rate reduction plus 0.25% Auto Pay discount). Floor rate 3.99% APR on auto loans. Limited-time offer ends 09/30/2026. Subject to change without notice. All loans subject to credit approval and underwriting standards. Membership required. Terms and conditions apply.