Auto loan refinancing replaces your current vehicle loan with a new one—potentially lowering your APR, reducing monthly payments, or improving your payoff timeline when the numbers make sense.
Replace your existing auto loan with a new loan that better fits your current financial profile.
Successful refinancing can lower your APR, reduce your payment, or shorten your payoff timeline.
Approval and pricing depend on credit, income, vehicle value, and remaining payoff balance.
Loan-to-value plays a major role in determining refinance eligibility and interest rate offers.
Shorter terms reduce total interest, while longer terms may lower monthly payment amounts.
Fees or extending the loan term too far can eliminate potential refinancing savings.
Auto loan refinancing is the process of replacing your current vehicle loan with a new loan—either from a different lender or, in some cases, your existing lender. The new loan pays off your current balance, and you begin making payments under updated terms.
Refinancing is not automatically beneficial. The decision should be based on total cost, not just a lower monthly payment.
The official amount required to close your existing loan, including accrued daily interest and timing differences.
Lenders use market valuation and condition to determine eligibility and influence refinance approval terms.
Loan-to-value ratio compares your loan amount to vehicle value, impacting approval, interest rates, and lender risk.
Lenders evaluate overall credit health, including payment behavior, utilization, delinquencies, and recent credit activity.
DTI measures affordability by comparing total monthly debts against income to assess repayment ability.
Auto refinance offers should be evaluated beyond APR alone. Potential costs include:
Minor fees can cancel out expected savings when they are not included in a complete, accurate refinance cost calculation.