Will refinancing hurt my credit?
Applying for a refinance will cause a hard inquiry on your credit report, which can temporarily lower your score by a few points, though rate shopping within a 14-day window counts as a single inquiry.
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Auto Loan Refinance Calculator
Calculate how much money you can save by refinancing your current auto loan to a lower interest rate.
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How refinancing changes your loan
Refinancing pays off your old auto loan with a new one. Your new loan will have a new interest rate and a new term.
You can save money by securing a lower interest rate, or by shortening the term to pay off the car faster with less interest.
Even a 1.5% to 2.0% reduction in APR can save over $1,200 in finance charges on an average $25,000 balance without extending your payoff timeline.
New Payment = Balance [ r(1 + r)^n ] / [ (1 + r)^n - 1 ] r = New Monthly Rate, n = New Term
Frequently asked questions
Can I refinance if I am underwater?
It is very difficult to refinance if you owe more than the car is worth, because lenders use the car as collateral, but paying down the difference can unlock approval.
When is the best time to refinance an auto loan?
The ideal time to refinance is when your credit score has improved by 30+ points since initial purchase, or when benchmark Federal Reserve interest rates have fallen significantly.