By Amber Tobeck, Director of Lending
As Director of Lending at Northwoods Credit Union, I talk with members often about ways to make their money work harder—especially during the winter months. After the holidays, many families are taking a closer look at their finances and asking where they can cut costs without sacrificing reliability or peace of mind.
One area that’s often overlooked is your auto loan. If your vehicle loan is with another lender, refinancing could be a really smart way to lower your monthly payment, reduce interest costs, and free up extra cash for other financial priorities.
A Limited-Time Opportunity to Save Money
This winter, Northwoods Credit Union is offering 1% cash back on auto loan refinances—up to $500—for members who bring their auto loan to us.
For many members, this cash back provides an immediate boost, whether that means offsetting winter expenses, paying down other debt, or adding a little breathing room to their budget. It’s one more way we’re helping members start 2026 strong.
Why Winter Is a Smart Time to Review Your Auto Loan
The Minnesota winter often brings higher household expenses, from heating costs to unexpected repairs. Taking a closer look at your auto loan during this time can help uncover opportunities to reduce one of your largest monthly payments.
Refinancing isn’t just about chasing a lower rate. It’s about making sure your loan still fits your financial situation today. If your credit profile has improved, your vehicle has equity, or market rates have changed since you originally financed, refinancing could help put more money back in your pocket each month.
What Auto Loan Refinancing Really Means
Auto loan refinancing replaces your current vehicle loan with a new one, often with a lower interest rate, better terms, or both. When done thoughtfully, refinancing may help you:
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Lower your monthly payment
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Reduce the total interest paid over the life of the loan
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Adjust your loan term to better match your budget
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Use vehicle equity strategically to address higher-interest debt, when appropriate
Every situation is different, which is why our lending team takes time to review each member’s goals and options before moving forward.
A Real-World Example of Potential Savings
Here’s a simplified example to show how refinancing may make a difference:
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Loan Amount: $25,000
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Loan Term: 60 months
| Original Loan | Refinance Example | |
|---|---|---|
| Interest Rate | 7.24% | 6.24% |
| Monthly Payment | $498 | $487 |
| Total Interest | $4,873 | $4,168 |
That’s a monthly savings of $11 and more than $700 saved in interest over the life of the loan. While actual savings vary, this illustrates how even a modest rate reduction can add up over time*.
More Than a Rate: The Credit Union Difference
When you refinance with Northwoods Credit Union, you’re not just getting a loan—you’re gaining a local financial partner that in 2026, has been serving northern Minnesota for 90 years.
Our members benefit from:
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Local lending decisions, made right here in the community
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Real people answering your calls, not automated systems
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Access to member-only protections, including GAP coverage and extended warranties at competitive costs
These added benefits are designed to provide confidence and peace of mind well beyond your monthly payment.
Is Refinancing Right for You?
Refinancing may be worth exploring if:
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Your auto loan is with another lender
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You’re paying a higher interest rate than the current market conditions
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Your credit has improved since you originally financed
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You’re looking to reduce monthly expenses or total interest paid
Our lending team is happy to walk through your options and help determine whether refinancing makes sense for your situation.
Ready to Get Started?
If you’re looking for a smarter way to manage your auto loan this winter, refinancing could help you save—both now and over time.
Apply now to see if refinancing your auto loan with Northwoods Credit Union is right for you and take advantage of our limited-time cash-back offer.
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*1 Up to 125% financing on new autos for qualified members and up to 125% financing of the NADA Clean retail value on used autos for qualified borrowers.
*2 Rates are determined based on the creditworthiness of the applicant. Effective 12/1/2025
*3 Terms are determined based on the creditworthiness of the applicant and by the loan amount.
*4 Up to 125% financing on new for qualified members and up to 125% financing of the NADA Clean retail value on used for qualified borrowers.
*Not all applicants will qualify for an auto loan refinance. Membership eligibility required. NCU is insured by NCUA.