Find out how much you could save by refinancing your auto loan. Enter your current loan details and compare with new rate offers to see your monthly savings, total interest savings, and break-even point. Last Updated: March 2026
6.84%
Avg Auto Loan Rate (2026)
$2,847
Avg Annual Savings
4.5%
Best Refi Rate Available
Calculate Your Refinance Savings
Enter your current loan details and the new rate you've been offered.
Compare rates from multiple lenders in minutes. No obligation, no credit impact for initial check.
How Auto Loan Refinancing Works
Step 1: Check Your Current Loan Details
Review your current auto loan statement for your remaining balance, interest rate, and number of payments left. You can find this on your monthly statement or by calling your lender.
Step 2: Compare New Rates
Shop around with banks, credit unions, and online lenders. Many offer rate checks with a soft credit pull that won't affect your score. Compare at least 3-5 lenders for the best rate.
Step 3: Calculate Your Savings
Use the calculator above to compare your current loan against the best new rate you've found. Consider both monthly savings and total interest savings over the life of the loan.
Step 4: Apply and Close
Once you've found a better rate, apply with the new lender. They'll pay off your existing loan and you'll start making payments to them at the lower rate. The process typically takes 1-2 weeks.
When Refinancing Makes Sense
Your credit score has improved - If your score has gone up 50+ points since your original loan, you likely qualify for a better rate.
Market rates have dropped - If current rates are 1-2% lower than your existing rate, refinancing is usually worthwhile.
You got a dealer markup - Dealership financing often includes a rate markup. Refinancing directly with a lender can eliminate this.
You want to change your payment - Refinancing can lower monthly payments (longer term) or reduce total interest (shorter term).
You're paying more than 6% APR - In the current market, rates below 5% are available for qualified borrowers.
When NOT to Refinance
You're near the end of your loan - If you have fewer than 12 months left, the savings usually aren't worth the hassle.
Your car is too old or high-mileage - Most lenders won't refinance vehicles over 10 years old or with 100,000+ miles.
You're underwater - If you owe more than the car is worth, refinancing options are limited.
Prepayment penalties exist - Check if your current loan has prepayment penalties that would offset savings.
Frequently Asked Questions
When should I refinance my auto loan?
Consider refinancing when interest rates have dropped since your original loan, your credit score has improved significantly, or your current rate is above market average. Most experts recommend refinancing if you can reduce your rate by at least 1-2 percentage points.
Does auto loan refinancing hurt my credit score?
A refinance application may cause a small, temporary dip in your credit score due to the hard inquiry. However, most scoring models treat multiple auto loan inquiries within a 14-30 day window as a single inquiry. The long-term benefit of lower payments often outweighs this minor impact.
Can I refinance an auto loan with bad credit?
Yes, some lenders specialize in refinancing for borrowers with lower credit scores. While rates may not be as favorable, if your credit has improved since your original loan, you may still find a better rate. Credit unions and online lenders often have more flexible requirements.
How soon can I refinance my car loan?
Most lenders require you to wait 60-90 days after your original loan before refinancing. Some lenders may have mileage or age requirements for the vehicle. Generally, the sooner you refinance after a rate drop, the more you save.
What fees are involved in auto loan refinancing?
Common fees include a title transfer fee ($5-75 depending on state), re-registration fee, and possibly a lien holder fee. Some lenders charge origination fees, but many do not. Always compare the total cost of fees against your projected savings.
Will refinancing extend my loan term?
It depends on the terms you choose. You can refinance to a shorter term (higher payments, less total interest) or a longer term (lower payments, more total interest). The calculator above helps you compare both scenarios.
