Auto Refinance - Lower your rate and save!
Get a better rate with auto loan refinance today
Learn how to refinance your auto loan
This is your guide to learn about auto refinance. We discuss the process, general requirements, application, assess your goals, and review lenders.
We are former HSBC auto refinance managers and we’ll give you an “insider’s perspective”. We've built this site to help the tens of thousands of customers who are likely paying far too much on their car loans.
Auto refinance can save thousands of dollars over the course of your loan. Even those who have less than perfect credit scores, we feel that refinancing your auto loan is doable. If you have been making steady payments on your existing car loan, then another lender may reassess your terms and offer a better rate. .
There are a few good refinance auto loan companies who can lower your rate and decrease your monthly payment. This can save thousands of dollars. If you are interested in lowering your rate, then below are lenders we recommend.
Auto refinance companies we recommend:
• Delivers quotes from 4 lenders
• Decision within 15 minutes
• No obligation
• FREE application
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• Simple refinance process
• Fast decision after applying
• No obligation
• No fees to apply
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If you want to learn more, then read further:
Auto loan refinance process
Should you refinance your auto loan
Benefits of auto refinance
What is auto refinance?
Auto refinance is very similar to mortgage refinance. Another lender evaluates your credit history, your current loan terms, and your vehicle, and determines if they can offer a better rate than your current lender. They will payoff your current loan and assume the rest of the balance.
Auto loan refinance is not the most common form of loan refinance, mainly because many banks do not offer this product. However, it is a fast and easy way to put money back into your pocket. Unlike mortgage refinance, the process does not take very long; some customers are able to refinance their auto loan in under one day, spending less than 20 minutes on the entire process!
What is the application process to refinance my car loan?
Used car refinance applications are typically quite easy. Usually it can be done online and takes about 10-15 minutes.
Most lenders have the ability to supply a credit decision instantly, or can provide a decision within 15 minutes after application submission. At that point, you will be presented with your loan terms, to include the available interest rate. If you decide to move forward, then call the bank to get things started. Likely, if you are approved, the bank will call you to get you started immediately into the process.
Should you refinance your auto loan?
Auto refinance loan options give you an opportunity to lower interest rate and monthly payment. Applying is simple, and free. You could save a bundle. There are many auto refinance benefits and we don’t any major downside to applying for this loan. Car refinance loan options give you an opportunity to lower interest rate and monthly payment. Applying is simple, and free. You could save a bundle. We don’t any major downside to applying for this loan. Car loan refinance rates are at an historical low, hovering around 5% or lower. This means that you could really lower your interest rate and save money! Therefore, it is a great idea to see if you would benefit from a refinance.
While anyone can qualify for a refinance, we especially recommend that you investigate auto refinancing if you:
- Pay more than 8% interest on your auto loan
- Have a recent strong payment history
- Took a loan at an auto dealership, which likely was subject to a “markup”
- Want to extend the term of your loan to lower your monthly payment
Auto refinance companies can’t compete with a 4% loan, and most won’t be able to help you with older cars with hundreds and thousands of miles, but you’d be surprised how many can be helped.
I have bad credit. Is auto loan refinance even an option for me?
Auto refinance for bad credit consumers is doable. Those with previously poor credit may be the best candidates. Making steady payments on your loan is key. Assuming that there has been some improvement in your credit performance since you obtained your original car loan, we think that you can refinance. As we’ve mentioned, lenders will look at many different factors when determining whether or not to extend you credit, so there are no universal rules about who will and who will not be approved for a refinance. However, we think you’ll have a good chance of success with the following conditions:
- Have you made your car payments on time over the last six months to one year? (showing that you can make a car payment on a timely basis gives lenders confidence that you’ll repay their loan.)
- Have you taken steps to improve your credit, no matter how bad it was, since you obtained your auto loan? (your entire credit history will be scrutinized, but more weight will be given to your most recent credit performance. As your FICO improves, your risk goes down, and therefore your interest rate will go down.)
- Are federal interest rates decreasing? (even if your credit is similar to your credit at the time of our original car loan, a declining interest rate will likely provide opportunities for you to refinance at a lower rate.)
Auto refinance benefits include:
- Lower the interest rate on your current auto loan
- Decrease your monthly car loan payment
- Reduce the amount of interest you pay over the life of the loan
- Change parties listed on the loan (add someone, drop ex-spouse, etc...)
- Potentially skip 1st car payment with your new lender
Ready to learn more? Continue to our next page: Auto Refinance Requirements
