Auto Refinance Savings Calculator
Calculate how much you can save by refinancing your auto loan to a lower rate. Compare your current loan to a new refinanced loan.
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When to Refinance Your Auto Loan
Auto refinancing replaces your current loan with a new one at a lower rate, potentially saving hundreds or thousands in interest. It makes sense when rates have dropped since you bought the car, your credit score has improved, or you originally accepted a high dealer rate.
Who Should Refinance?
Refinancing is most beneficial if your current rate is 2%+ higher than available rates, you have at least 12+ months remaining on your loan, your car is less than 10 years old with under 100,000 miles, and you owe less than the car's current value.
Watch Out For
Extending the loan term to lower payments may cost more in total interest even at a lower rate. Refinance fees ($100-300 typically) should be factored in. Some states charge re-titling fees. And don't restart a 60-month term when you only have 24 months left.
When Auto Refinancing Makes Sense
Consider refinancing your auto loan when your credit score has improved since you took out the original loan, market interest rates have dropped, you want to change your loan term (shorter to save interest, longer to lower payments), or you need to remove a co-signer from the loan.
The Refinancing Process
Auto refinancing is typically straightforward: apply with a bank, credit union, or online lender, get approved at a new rate, and the new lender pays off your old loan. You then make payments to the new lender. The process usually takes 1-2 weeks and most lenders charge no origination fee.
Watch Out For
Extending the term: If you refinance a 48-month loan into a new 60-month loan, your monthly payment drops but you may pay more total interest. Compare total cost, not just monthly payment.
Underwater loans: If you owe more than your car is worth, refinancing options are limited. Some lenders won't refinance negative-equity auto loans.