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Auto Refinance Calculator

LoanAffordabilityAuto Refinance

How much could you save monthly with auto refinance? Use our auto refinance calculator and find out what you are looking at monthly.

Your estimated monthly loan payment is

$684.10/mo

Monthly savings

$55.90

Difference in interest

$2683.20



*This auto refinance calculator is provided for illustrative and general estimation purposes only. The rates displayed are for general estimation and can vary depending on individual requirements.

Use the auto refinance calculator to find out how much you could save

Our auto loan refinance calculator will help determine how much you can save on your monthly payments, interest, or both.

  • Input details - Enter the necessary current loan details, such as your current monthly payment, the loan amount left to pay, remaining loan terms, current interest rates, and new loan interest rates and loan terms.
  • Compare rates - Figure out the most suitable adjusted term and interest rate for your financial situation, and then compare different lenders that provide auto refinance options.
  • Apply for preapproval - To find out the potential rates and see if they suit you, get preapproval from multiple lenders. Getting pre-approved can help you understand if refinancing will help you financially.

How to use the Auto Refinance Calculator?

To use the auto refinance calculator, you should input the following data to get the most accurate results.

  1. What amount do you have left to pay: The entire outstanding balance on your current loan. It is not the original amount borrowed.
  2. Current monthly Payment: This is the monthly payment on your existing auto loan. It consists of principal, interest, and fees.
  3. Current rate of interest: This is the current percentage interest rate on your auto loan. If your lender offers an annual percentage rate (APR), that figure includes the interest rate as well as any fees or other expenditures you may incur. Use the APR rather than the interest rate to get a more realistic estimate.
  4. New interest rate: This is the new interest rate on your refinance loan that you plan to pay. If the lender offers an APR, utilize that percentage because it is more explicit.
  5. New Loan term: This is the length of time you want your new loan to be. It might be anything between two and seven years.
  6. Remaining Loan terms: The number of monthly payments left for you to complete your current loan term.

Once you input all the necessary information, the calculator will approximate how much your new monthly payment will be. Along with how much interest you'll have to pay if you refinance your current auto loan. Know that the auto refinance loan calculator results are your potential savings, not the accurate ones. The exact numbers depend on other things like the type of car you're refinancing, the lender, and your financial profile.

What is Refinancing and how does it work?

Refinancing your auto loan lets you replace your existing loan with a new one. By qualifying for lower rates and choosing a shorter term or a term of equal length, you can lower your monthly payment and cut down on the total amount of interest you will have to pay.

Not everyone can always get better rates through refinancing, even though many people can qualify for them. When refinancing, lenders might need you to be eligible for certain requirements. These requirements could include:

  • Having a record of consistent payments on time.
  • Having a good personal credit score.
  • Having less than 100,000 miles on the vehicle.
  • Having a vehicle less than ten years old.
  • The current loan meets the minimum refinance amount.

Refinancing comes with risks. If you decide to refinance at a similar interest rate but choose a longer repayment period, there is a higher chance that you will owe more on your loan than your car is worth. To avoid this, it's best to avoid long repayment terms. However, they may seem appealing when refinancing for a smaller monthly payment.

When should you refinance an auto loan?

When considering whether to refinance your auto loan, the main factors are saving money on interest, reducing your monthly payment, or achieving both. Here are some situations to consider for deciding when to refinance your current auto loan:

A dealer financing was offered to you

Dealers frequently include a small commission by adding a few points. If the car dealer's preferred lenders financed your original loan, it's likely that you didn't get the best interest rate available.

Your credit score has improved

Even a small difference of 30 points in your credit score can definitely impact the new interest rate that you seek. If your credit score has improved since you first got your auto loan, you might be able to save money by refinancing.

You want to cut down on your monthly loan payment

When you refinance your loan for a longer term, your monthly payment gets lower. However, it will result in you paying more interest. To reduce your payment, choosing a loan term that matches your remaining time but with a lower interest rate would be best.

Current national interest rates are getting low

Auto loan rates become more competitive when the federal funds rate is low. The Federal Reserve has increased rates for ten consecutive meetings, increasing lenders' borrowing costs.

Your car has equity

Lenders consider it a positive thing when the value of your vehicle is higher than the amount you owe. You may be able to land lower interest rates in this case.

How to apply for an auto refinance loan

Refinancing your auto loan is similar to applying for your initial vehicle loan. Before finalizing a new refinanced auto loan, make sure to follow these five steps:

Figure out if refinancing would be beneficial for you financially

Compare your current monthly expenses with the savings you could achieve if you refinance your current auto loan.

Thoroughly review your current loan

To calculate the amount of interest you will pay, get to know your current interest rate and loan term.

Find out how much your car is worth

To get your vehicle's estimated worth, use resources such as Kelley Blue Book and Edmunds.

Take the time to explore and compare options

Compare the refinancing options offered by at least three different lenders. Once you've done that, apply for preapproval to see the rates they offer.

Sign off on the new loan

Select a loan option that will provide a new term and rate. However, ensure that by doing so, you will either reduce your monthly payment or pay a lower amount in interest.

Auto Refinancing Rates by Lenders

Lender Est. APR Loan amount Min credit score
RefiJet 3.49 - 28.00% $6,000 - $120,000 560
Caribou 5.99 - 38.00% $12,000 - $135,000 630
RateGenius 4.99 - 22.00% $9,000 - No max. 560
LendingClub 5.99 - 25.99% $5,000 - $65,000 670
Consumers Credit Union 6.54 - 22.24% $8,500 - $600,000 630
Upstart 12.17 - 30.99% $6,000 - $70,000 520
MyAutoloan 1.99 - 22.00% $6,000 - $110,000 585
Ally 9.54 - 24.49% $8,500 - $100,00 530
LightStream 9.74 - 17.19% $6,000 - $110,000 670
Tresl 4.99 - 22.00% $9,000 - No max. 560
Autopay 4.99 - 22.00% $9,000 - No max. 570
OpenRoad 5.29 - 29.00% $8,500 - $110,000 510
iLending 5.74 - 24.00% $8,500 - $160,000 570
Gravity Lending 5.49 - 15.99% $11,000 - $210,000 590
Lending Arts 6.44 - 22.00% $6,000 - $160,000 560
PenFed Credit Union 6.29 - 18.99% $11,000 - $110,000 Did not disclose
Bank of America Not available $8,500 - Max. not disclosed Did not disclose
Digital Federal Credit Union 7.24 - 15.99% $3,500 - $600,000 610
Alliant Credit Union 7.52 - 27.40% $5,000 - $1,200,000 Did not disclose
Navy Federal Credit Union 5.54 - 19.00% $253 - No max. Did not disclose

Documents required to refinance your auto loan

Whether you choose to apply online or in person, you will need to have certain information in hand to get approved. Here's a list of the documents you would need to refinance your auto loan:

  • SSN: Your social security number will be used by your lender to make sure you are who you say you are. It vouches for your identity.
  • Valid driver's license: A valid driver's license is a must if you want to get a car loan.
  • Your credit report: Just like when you apply for a new loan, your new lender will check your credit to see if you qualify for refinancing. The rates and terms of your new loan will also depend a lot on your credit record. Before you apply for refinancing, you should always check your credit report. That will help you to know whether you qualify and put you in a better situation to get better interest rates.
  • Pay stubs: Your lender will want to check how much money you make to ensure you can repay your new loan. Most lenders want to see pay stubs from the last two to three months as proof that you work and make money.
  • Title and registration details: Your lender will request the car's title to make sure it is registered in your name. You will also have to show proof that you have insurance.
  • Tax forms: If you are self-employed, some lenders may ask for pictures of your 1040 SE forms as additional proof of income. You might also be asked for copies of your most recent tax forms, which usually go back two to three years. Lenders use this information to ensure you have a job and make money and also to see how your income changes over time.

Remember that you must keep making payments on your present loan while looking into lenders and applying for a refinance loan. If you miss any payments, you won't be able to get a new loan. Your obligations to your original lender will stay in place until the refinance deal is finalized, and your new lender has paid off the original debt.

Factors to consider when refinancing your vehicle

Amounts

A lot depends on the lender when it comes to the maximum and minimum car loan refinance amounts.

Terms

The terms of a refinanced auto loan are usually between 36 and 60 months, but they can be anywhere from 24 to 84 months, based on the lender and your situation. Most of the time, a longer term means a smaller monthly payment, but you'll end up paying more in interest over the life of the loan.

Rates

Rates for refinancing an auto loan are higher than rates for buying a new car and more like rates for buying a used car. This is because you are financing a used car. Your credit and pay will determine your exact rate. Based on their credit score, here are some stats on average APRs for car loans.

Credit score Average APR
720 or higher 5.50%
680-719 6.58%
660-679 7.33%
640-659 7.76%
620-639 8.63%
580-619 9.13%
560-579 11.35%
Less than 560 13.70%

What factors affect refinancing your car?

If you want to refinance your car loan, you probably want to know the loopholes of not getting approval from your lender. Here are some factors that can affect your approval:

Your credit score

It is more than just a number. Your credit score tells you what interest rates you can get and whether or not you are a good choice for refinancing.

Debt-to-income ratio (DTI)

Your DTI shows how much you owe each month compared to how much you make each month. The less debt you have compared to your income, the less risky you are perceived to be.

Vehicle value

The worth of your car is significant for refinancing. Lenders don't want to give out more money than the car is worth, so they'll look at everything from the type to how many miles it has.

Pre-tax income

Lenders will look at your income before taxes to make sure you can easily pay your monthly payments. When a person's income goes up, refinance is usually a good idea.

Is an auto loan refinance worth it?

If you're considering refinancing your car loan, use Way's auto loan refinance calculator to see how you could lower your monthly payment or save money.

If refinancing would lower your monthly payments significantly, it is worth it. With a refinancing, your interest rate might go down, or the length of your loan goes up, or both. And that can help you save money.

But now is not the right time if you wouldn't save much money each month by refinancing. if your remaining amount isn't too high or your interest rate won't go down much, refinancing your car loan might not make enough of a difference to be worth your time.

Frequently Asked Questions

Is it smart to refinance a car?

Refinancing or not is a personal choice, and it depends on the individual financial situation. One of the main reasons refinances are a good option is the low-interest rates companies offer. Similarly, lower monthly payments and shorter loan terms are options when refinancing your car. However, it is not a smart option if you opt for a long-term option, as the total interest rate you pay will be more than what you should be paying, even if you get it at a low-interest rate.

What is a good interest rate for car refinance?

The lender, credit score, and loan term determine the rate for automobile refinancing. Presently, the auto interest rates for borrowers possessing impeccable credit stand at 4.25% for a 72-month loan, 4.57% for a 36-month loan, and 4.58% for a 48-month loan. However, the mean interest rate for loans of all credit tiers and terms stands at 8.72%.

What's a good score to refinance a car?

While no minimum credit score is needed to refinance an auto loan, standard interest rates are available to those with 660 and 700, while those over 700 get the best rates.

How many years should you wait to refinance your car?

After purchasing a car, you must wait at least 60 to 90 days before refinancing because transferring the title to your name generally takes this long. In most cases, waiting at least six to twelve months before refinancing an auto loan is preferable.