What is the break-even point for refinancing a 13-month-old auto loan?
You reach break-even on refinancing your 13-month-old auto loan in 6 to 18 months. This range covers closing costs with your monthly savings. For your 2024 Hyundai IONIQ 6 in ZIP 10281, you hit break-even at 16 months with typical rates.
How to Calculate Your Break-Even Point
Start with your current loan details. A 13-month-old loan on a 2024 Hyundai IONIQ 6 often shows a $25,000 balance. Assume a 60-month original term at 6.5% APR. Your monthly payment hits $492.
Shop for a new rate. Credit unions offer 4.9% APR for good credit. This cuts your payment to $467 over 47 months left. You save $25 each month.
Factor in closing costs. Refinance fees total $200 to $500. Use $400 as the average.
Divide costs by savings: $400 divided by $25 equals 16 months. You break even after 16 months. Stay in the loan longer, and you pocket real savings. You save $1,200 in total interest over the loan life. Savings grow if rates drop further.
Example for 2024 Hyundai IONIQ 6
| Detail | Current Loan | New Loan |
|---|---|---|
| Balance | $25,000 | $25,000 |
| APR | 6.5% | 4.9% |
| Term Left | 47 months | 47 months |
| Monthly Payment | $492 | $467 |
| Monthly Savings | - | $25 |
| Closing Costs | - | $400 |
| Break-Even Point | - | 16 months |
Best Time to Refinance at 13 Months
At 13 months, you passed the peak window. Lenders prefer 12 to 24 months left on the loan. Your credit score has likely improved. Positive equity in the IONIQ 6 boosts approval odds. Refinance now if your rate exceeds 5.5%.
Skip refinance if fewer than 12 months remain. Fees eat up small savings.
Steps to Refinance Today
- Check your credit score. Target 700 or higher for top rates.
- Get rate quotes from three credit unions. Compare full APRs.
- Run the numbers in an auto refinance calculator. Enter your balance, rates, and fees.
- Gather your loan statements and IONIQ 6 title.
- Apply online. New funds arrive in 3 to 5 days.
How Sidekick Helps
Sidekick tracks your IONIQ 6 loan in ZIP 10281. It pulls live rates and calculates your break-even point to show $1,200 in savings.