Auto Refinancing in Arkansas (August 2025)

Reduce your monthly payments with Arkansas auto refinancing

If there’s one thing Arkansans agree on, it’s that owning a vehicle in the state comes at too high a cost. If you’re not careful, you could end up paying high monthly loan payments for the entire loan term.

You can get out of a bad Arkansas auto loan by refinancing it with a new lender instead! Here are some important benefits you gain:

• Lower your Annual Percentage Rate (APRs)
• Reduce your monthly car loan payments
• Add or remove co-signers/co-borrowers to your loan
• Take a payment vacation/ defer your pay
• Extend or shorten your loan term
• Buyout your car lease at the end of the term
• Choose bi-weekly payments and hardship plans

Auto Refinance in Arkansas – Unlock savings on your car loan

Owning a car in the ‘Natural State’ of Arkansas is an absolute must if you want to get around. However, with skyrocketing prices, new cars have become extremely pricey. The more the price, the more your auto loan – and the higher your monthly payments!

Auto refinancing in Arkansas replaces your expensive existing loan with a new loan - typically with a lower APR and monthly payment. The benefit is that you can save more in the long run – as much as $1850/year. If you sign up with a refinance aggregator like Way.com, you could also benefit from multiple deals and offers to choose from!

Why Should I Refinance My Arkansas Auto Loan?

When financing a car in Arkansas, you’re likely to go with either a car dealership or a trusted bank. However, one thing these places don’t offer you is choice. You will be told that the interest rates are the best they can offer you, or that your credit isn’t good enough to warrant a better APR.

However, you will realize that you deserved a lower rate only much later – when you talk to other borrowers who pay much lower amounts! There’s no need to worry – you too can save more by refinancing your Arkansas auto loan for the following benefits:

• Lower your car loan interest rate: A lower APR can save you between $80-150 every month and thousands in the long run.
• Reduce your monthly payment: You can spend more money every month on your mortgage and student debt instead.
• Add or remove a co-borrower/co-signer: You can add a spouse or parent as a co-borrower to help you repay the loan on time.
• Find lenders who offer payment vacations: Get more flexible plans that allow you to defer payments in an emergency.
• Get cash-out refinancing: Put up your car as collateral and borrow an amount up to 125% of the car’s resale value.
• Include more benefits in your loan: Add Guaranteed Asset Protection, Extended Warranty, and other benefits to your refinanced loan.
• Sign up for hardship plans or biweekly payments

How Much Can You Save Through Auto Refinance in Arkansas?

The exact amount of savings you can make depends on several factors like:

• Your credit score
• The loan amount
• The new loan term
• Your payment history

However, on average, those who refinance their loans can reduce their rates by at least 1-2% and save between $800-1850 every year.

When Should You Refinance Your Arkansas Auto Loan?

It can be tempting to rush to the nearest refinance institution when you find that you’re overpaying! However, we recommend caution, as you will only get the most benefit if the time is right.

Here’s when you know it’s the right time to refinance:

• At least 6-12 months should have passed since the start of your loan
• Your credit score should have increased by several points
• You aim to reduce your monthly payments and save money on your auto loan
• You want to get rid of certain terms/clauses in the auto loan
• You want to add/remove a co-signer or co-borrower to your loan

What Documents Do You Need to Refinance Your Auto Loan?

When applying for auto refinance rates in Arkansas, it’s best to keep all the official loan documents ready. Here’s what you need:

Personal Financial Information

• Driver’s License
• Credit score: Ideally above 660 to get preferential rates
• Social Security Number
• Proof of Income: You can use pay stubs, bank statements, or tax returns as income proof.
• Proof of Residence: Property tax bills, mortgage statements, auto insurance policies, or utility bills.You can submit mortgage statements, auto insurance policies, utility bills, or property tax bills.

Current Loan Information

• 14-day payoff amount: Call your lender and ask for the remaining loan balance, including the next 14 days’ principal and interest.
• Car Loan-to-value ratio: TThe LTV will tell you if you are “underwater” or “upside down” on your car loan. That means that you owe more than what the car is worth.
• Loan term remaining: You should have at least a year remaining on your loan term, and at least 6 months should have passed since the start of the loan.
• Prepayment penalty: Some lenders can charge up to 2% of the remaining loan balance as a prepayment penalty.

Vehicle Information

• Make and Model
• Year (Age)
• Title
• Vehicle Identification Number (VIN)
• Proof of Car Insurance

Auto Refinance in Arkansas: Eligibility Requirements

Your car will likely be eligible for auto refinance in Arkansas if it meets these criteria:

• The car is less than 10 years old (varies depending on the lender)
• The car has a mileage of less than 150,000 (varies depending on the lender)
• You have a verifiable income source
• You have a valid driving license
• You have a valid registration
• You have full coverage insurance
• You have a consistent payment history on your current loan

Average Auto Refinance Rates in Arkansas

*The above rates are averages: individual rates may vary based on credit scores, risk profile, payment history, loan balance, and more. Borrowers with excellent credit may get even lower rates than shown.

How to Refinance Your Arkansas Auto Loan with Way.com

Step 1: Estimate your savings

Use an online auto refinance calculator to punch in your desired APR and see how much you can save.

Step 2: Match with multiple pre-qualified offers

The advantage of using a lending platform like Way.com is that you can shop around, compare multiple rates, and pre-qualify for offers with a soft credit pull.

Step 3: Choose an offer and start saving

Once you choose an offer, be prepared for a hard credit inquiry which may affect your credit score. However, you can easily build it back in a matter of months – you just need to be consistent in your future payments.

How to Refinance Without Hurting Your Credit

Unfortunately, it isn’t possible to refinance without hurting your credit score. However, it is possible to reduce the magnitude of the drop by:

• Rate shopping within a certain window: Credit risk companies like VantageScore and FICO allow multiple inquiries to be clubbed together as one inquiry – if done within a certain range and for the same reason.
• Pre-qualifying using a soft credit pull: It’s smarter to pre-qualify with multiple lenders, shortlist a few, and then apply to your most preferred lender to reduce multiple credit hits.
• Check your credit score regularly and build it to a good level before applying.

Why our Arkansas Auto Loan Refinance Program is great for you

At Way.com, we understand that rising vehicle and maintenance costs in Arkansas have made life hard for car owners. You deserve to get the best deal on your auto loan, without bleeding money on it!

Way.com is simplifying car ownership across the country - starting with car payments! Our AI-enabled fintech platform allows you to:

• Find and connect to the best refinance lenders
• Compare the best offers and choose the best
• Refinance lease buyouts
• Include additional benefits like insurance, extended warranty, etc
• Refinance even with bad credit

… and much more!

What is Way.com?

Way.com is the country’s #1 auto super app and all-in-one car services marketplace, making car ownership affordable to millions of Americans.You can save more than $1500/year through our auto services like:

• Auto insurance and refinance
• Airport parking and city parking
• Car wash services
• Roadside assistance and Cashback on gas

Way.com has a 4.5 rating on Trustpilot, with more than 3 million satisfied customers. The Way app also has a 4.7 rating on Google Play and 4.9 on the iOS app store.