BMW Refinancing (August 2025)

Are you overpaying on your BMW auto loan payments?

By refinancing your BMW with Way.com, you could:

• Lower your Annual Percentage Rate (APRs)
• Lower your monthly auto loan payments and save money
• Post pone/defer car loan payments
• Change your loan's terms and conditions
• Finance lease buyouts
• Add or remove a co-borrower or co-signer
• Sign up for easier plans like bi-weekly payments
• Get add-ons like Vehicle Service Contracts/GAP insurance

What is BMW refinancing?

Owning a luxury vehicle like a BMW is a status symbol worth paying top dollar. However, nothing hurts your finances more than overpaying on your BMW auto loan!

If you are paying high monthly auto loan payments, BMW refinancing allows you to pay off your expensive original loan and take on a new loan with better terms and conditions.

Besides a lower APR and lower monthly payments, refinancing gives you the benefit of choice. It lets you choose a new loan with terms and conditions that fit your budget, compare rates from multiple lenders, and include additional benefits in your loan!

Why should I refinance my BMW?

When you bought your BMW, you might've financed the loan through a dealership, bank, or another financial institution. However, your credit score and payment history might not have been the best, so you might have had to settle for a high APR.

However, after a few months, your credit score and financial position may have improved. You could qualify for a better interest rate - which is the best time to refinance. If done right, refinancing can help you save more than $1500 annually.

By refinancing your BMW, you could:

• Lower your APR: Even a 1-2% reduction in interest rate can save you hundreds of dollars annually. A great credit score can reduce your rate by 2-3%.
• Lower your monthly payment: High monthly payments can reduce your disposable income. Refinance and find an amount you are comfortable with paying.
• Include more benefits in your loan: Add GAP, Vehicle Service Contract, and other benefits you missed in the original loan.
• Add or remove a co-borrower/co-signer: Having someone take a loan with you reduces the risk of default.
• Get cash-out refinancing: You can take out a loan for immediate expenses based on the equity you own in the car.
• Buyout your lease at the end of the term.

How much can you save when refinancing your BMW with Way.com?

Sample this - the average monthly payment in the US has crossed $600! If you're amazed at that fact, you'll also agree that every dollar saved on your car is valuable.

The money you save through BMW refinancing could help you pay for other car-related expenses - like gas, insurance, maintenance, and more. If you get the best possible rate and a great deal, you could save as much as $1500 a year.

If you're in a financial emergency, you can also get fast cash through cash-back auto refinancing by putting up the BMW as collateral and borrowing based on the equity you owe in it.

When should you refinance your BMW?

Don't rush to refinance just because you realized you're overpaying! Refinancing is best done when you meet at least a few of the following criteria:

• If at least three months have passed since your existing loan
• If your credit score has increased by a few points
• If you've become eligible for a better loan because of consistent payments
• If your monthly expenses have increased and you want to save more
• If you want to add a co-signer or co-borrower to your loan to reduce your APR
• If your car has become old and is not worth the high monthly payments

BMW Refinance Rates (June 2023)

What BMW models can I refinance?

Almost any BMW model can be refinanced for a better rate:

• BMW X5
• BMW X6
• BMW X7
• BMW 4 Series
• BMW X6 M
• BMW i4

EVs and hybrid vehicles could have different terms. If you own a BMW EV or hybrid, double check with your lender before signing on for refinancing.

What documents do you need for BMW refinancing?

Get all the official loan documents and personal financial details ready before applying for refinancing. This will help smoothen the entire refinance process and help you close a quick deal. Some things to keep ready include:

• Your credit score: While a score above 660 will get you good rates, one above 740 will get you an excellent deal. Keep track of your credit score by using the one free credit report per year from credit bureaus.
• 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: The LTV will tell you if you are “underwater” on your car loan (i.e., owe more than what the car is worth). Refinancing isn't worth it if you are underwater.
• Loan term remaining: Ideally, you should have at least a year left to pay on your current loan, and at least 3-6 months should have passed since you took it.
• Prepayment penalty: Make sure that your existing loan provider does not penalize you for paying off the loan early.

Also keep your personal details ready, like:

• Vehicle information: VIN, title, registration, number, and mileage
• Income information: Salary slips, pay stubs, and tax returns
• Personal information: Driver's license and Social Security Number

Will my BMW be eligible for refinancing?

Your BMW will typically pre-qualify for refinancing if:

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

How to refinance my BMW with Way.com

Step 1: Use an online auto loan calculator to find your savings

To check if refinancing will benefit you, it's best to use an online auto loan refinance calculator. Input your desired APR and loan term into the calculator to find your estimated monthly payment. If it is lower than your current payment, it's a green light to refinance!

Step 2: Compare offers from multiple lenders with Way.com

Avoid making the same mistake as last time - don't choose the first offer you get. With Way.com, you can pre-qualify for offers from multiple lenders using a soft credit pull. It just takes a few minutes to input your basic details.

Step 3: Choose an offer and start saving

From the several offers you get, choose one that has the most benefits and fits your budget too. Once you complete the application, there will be a hard credit inquiry that will temporarily affect your credit score - but you can easily make that up with consistent payments.

What add-ons can I include to my refinanced BMW auto loan?

You can add many benefits into your refinanced loan that was not included in your original BMW loan. The most popular add-ons include:

• Guaranteed Asset Protection (GAP): GAP comes in handy if your car has been totaled in an accident and you still have a loan balance to pay off. GAP will pay the difference between the amount the insurance company pays you (based on the car's current value) and the remaining loan amount.
• Extended Service Contract (ESC): Also called Extended Warranty or Vehicle Service Contract, it covers any unexpected mechanical and electrical issues after the expiry of your manufacturer's warranty.

Can you refinance a BMW with bad credit?

Even though you'll get better deals with a good credit score, you can also refinance a vehicle with bad credit. However, bad credit refinancing may be costlier and have certain terms and conditions like:

• A larger down payment when refinancing
• You may need to have a co-borrower or co-signer to reduce the risk to the lender
• Refinance exclusively with lenders specializing in bad credit loans
• Get a longer loan term (which could increase your interest charges)

Why our BMW Refinance Program is great for you

At Way.com, we understand that rising vehicle costs can make it hard to finance and maintain your vehicle. It's no fun owning a BMW when you're constantly worried about how much you're overpaying on your auto loan.

That's where we come in - we make car ownership simplified, starting with your car payments! With Way.com, you can easily:

• Get connected to the best refinance lenders
• Compare offers and rates from multiple lenders
• Refinance lease buyouts
• Include additional benefits like insurance, extended warranty, etc
• Refinance with a bad credit score

... and much more!

What is Way.com?

Way.com is the country's leading car services marketplace, making car ownership affordable to millions of Americans. You can save more than $1500/year through our super auto app and website that offers:

• 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.