Refinancing vs. New Purchase: Which Summer Loan Deal Is Right for You?
Summer's here, and so is the perfect time to make that move you've been considering – whether it's finally buying that dream car, upgrading to a larger SUV for family road trips, or refinancing your current auto loan to better rates. At Public Service Credit Union, our 90 Days of Summer promotion is making both options more attractive than ever with a 0.90% rate reduction on qualifying loans.
But how do you decide between purchasing something new versus refinancing what you already have? Let's break down your options so you can drive toward the choice that makes the most financial sense for your situation.
Understanding Our 0.90% Rate Reduction Promotion
Before diving into the refinancing versus new purchase decision, let's clarify what this summer promotion means for you. Through August 31st, Public Service Credit Union is offering a 0.90% rate reduction on all secured consumer loans that involve either:
Purchasing from a dealer (new or used vehicles, boats, RVs, motorcycles)
Refinancing from another financial institution
This promotion applies to any titled or untitled collateral loans, giving you significant savings whether you're buying new or moving your existing loan to us. The key requirement? The collateral must either be a dealer purchase or currently financed elsewhere – this helps us manage title risk while passing maximum savings to you.
How Our Promotional Rates Stack Up
With the 0.90% promotional discount already factored in, our current auto loan rates range from 4.09% to 5.09% APR. How does this compare to what you'll find elsewhere?
According to recent industry data, the average rate for new car loans sits at 6.35% as of late 2024, while used car rates average 11.62%. Current market surveys show average auto loan interest rates at 7.24% for a 60-month new car loan, with overall average rates reaching 6.73% for new cars and 11.87% for used cars in early 2025.
The bottom line? Our promotional rates of 4.09%-5.09% represent substantial savings compared to national averages – potentially saving you thousands over the life of your loan.
When Refinancing Makes Perfect Sense
Refinancing your current auto loan can be a smart financial move, especially during our summer promotion. Here's when it typically makes the most sense:
Your Current Rate Is Higher Than Ours If you're currently paying more than 5.09% APR, refinancing with us could lower your monthly payment and reduce the total interest you'll pay over the loan's lifetime. With average rates for borrowers with super prime credit sitting at 5.25% and reaching as high as 15.77% for those with deep subprime credit, many borrowers have room for improvement.
Your Credit Score Has Improved Did you take out your original loan when your credit wasn't at its best? If your score has improved since then, you may now qualify for significantly better rates – especially with our promotional pricing.
You Want to Change Your Loan Term Refinancing gives you the opportunity to adjust your loan term. Want to pay off your vehicle faster? Choose a shorter term. Need to reduce your monthly payment? Extend the term (though you'll pay more interest overall).
You're Unhappy with Your Current Lender Beyond rate savings, refinancing brings you to Public Service Credit Union, where you'll experience our personalized service, local decision-making, and member-focused approach.
When a New Purchase Is the Better Choice
Sometimes, buying something new or different makes more financial sense than refinancing what you currently have:
Your Current Vehicle Needs Major Repairs If you're facing expensive repairs that exceed your vehicle's value, purchasing a reliable replacement might be more cost-effective than fixing your current car and keeping the higher-rate loan.
Your Needs Have Changed Growing family? New job with a longer commute? Sometimes life changes require a different vehicle, making a new purchase the practical choice.
You Want to Take Advantage of Dealer Incentives Manufacturers often offer cash-back incentives, special financing deals, or rebates that can make purchasing new more attractive than keeping your current vehicle.
Your Current Loan Balance Is Very Low If you owe very little on your current vehicle, the savings from refinancing might not justify the effort. In this case, purchasing something that better meets your needs could make more sense.
Crunching the Numbers: Real-World Scenarios
Let's look at two common situations to see how our promotional rates can benefit you:
Scenario 1: Refinancing Your Current Vehicle
Your situation: Two years ago, you financed $30,773 for a vehicle at 8.5% APR over five years. You've been making payments of $631 monthly and now owe $20,000 with three years remaining.
| Current Loan | Refinanced with PSCU | Your Savings |
|---|---|---|
| 8.5% APR | 4.09% APR (36 months) | 4.41% rate reduction |
| $631/month | $591/month | Save $40/month |
| More interest over time | Lower total interest | Save $1,442 over remaining term |
Bottom line: Keep your current vehicle while significantly reducing your monthly payment and total interest costs.
Scenario 2: Purchasing a New Vehicle
Your situation: You want to finance $45,000 for a new vehicle over 84 months.
| Market Average Rate | PSCU Promotional Rate | Your Savings |
|---|---|---|
| 8.5% APR (84 months) | 5.09% APR (84 months) | 3.41% rate reduction |
| Approximately $713/month | $638/month | Save $75/month |
| $14,862 total interest | $8,586 total interest | Save $6,276 over loan term |
Bottom line: Finance that new vehicle with extended terms for manageable payments while saving over $6,000 compared to typical market rates.
“Sometimes, buying something new or different makes more financial sense than refinancing what you currently have”
Making Your Decision
Consider these key questions as you weigh your options:
For Refinancing:
Is your current rate above 5.09%?
Are you happy with your current vehicle?
Has your credit score improved since your original loan?
Do you want to adjust your payment or loan term?
For New Purchase:
Does your current vehicle meet your needs?
Are you facing expensive repairs?
Would you benefit from newer safety features or better fuel economy?
Can you take advantage of manufacturer incentives?
The Public Service Credit Union Advantage
Regardless of which direction you choose, financing with Public Service Credit Union offers distinct advantages:
Local Decision-Making Your loan application is reviewed right here in Wausau by people who understand our community and your needs.
Streamlined Process Most applications receive approval within 24 hours when complete, so you can move quickly on your decision.
No Hidden Fees We believe in transparent pricing with no surprise fees or complicated terms.
Member-Focused Service As a credit union, we're owned by our members, which means your financial success is our primary goal.
Don't Miss This Limited-Time Opportunity
Our 90 Days of Summer promotion runs through August 31st, giving you just a few more weeks to take advantage of these significant rate reductions. Whether you decide to refinance your current loan or purchase something new, the 0.90% discount can translate to substantial savings.
Ready to move forward? Contact our lending team at loans@publicservirecu.org or call (715) 842-9865 to discuss your options. Our experienced loan officers can help you run the numbers for both scenarios and determine which choice offers the best financial outcome for your situation.
Remember, the best loan decision is the one that aligns with both your financial goals and your practical needs. With our promotional rates and personalized service, either path can lead to significant savings and a better banking relationship.
Current rates available at publicservicecu.org/rates. Rate reduction promotion valid through August 31, 2025. All loans subject to credit approval. Promotional rate applies to dealer purchases or refinances from other financial institutions only.