r/creditunions • u/Signal_Way_2559 • Apr 06 '26

Refinance car loan same bank vs different lender, loyalty to my CU ended up costing more than expected

Was a credit union member for six years. Checking, savings, credit card, all of it. When it came time to refinance the auto loan, went to the CU first out of habit and loyalty.

Ran the numbers. The credit union rate would have cost about $2,850 in total remaining interest. The competing rate: $1,940. Over $900 difference.

Brought the competing offer back to the credit union. They wouldn't match it. Refinanced with the other lender.

The CU relationship is still valuable for other things. But auto refinancing is competitive enough that loyalty to one institution has a real cost if the rate isn't the best available.

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5

u/Zrekyrts Apr 06 '26

Yep... always shop around. You owe that to yourself.

2

u/OftTopic Apr 06 '26

My credit union does have competitive auto refinance rates. However, their policy is to charge 0.5% more than normal if refinancing their own loans.

2

u/ducster Apr 06 '26

There was another post by someone else with the same content 5 days ago