Use our auto refinance calculator and see your estimated monthly savings!
$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.
What makes refinance car loan calculator crucial when looking to refinance, is the estimated savings on monthly payments, interest or both. By simply typing a few details of the existing and new car loan, it tells you how much you can save.
Here is an overview of how you work out the details and what to expect while using the refinance car loan calculator.
Here are the steps included while using a refinance can loan calculator to get the most accurate results.
With the necessary information, the refinance car calculator will calculate the approximate amount you’ll have to pay monthly. In addition, you’ll have an idea of the interest rates as well. However, one should keep in mind that the results provided by the car loan refinance calculator are your potential savings and not the accurate ones. The exact number will depend on the model of the car, your lender and your creditworthiness.
Refinancing your auto loan let's 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.
When refinancing, lenders might need you to be eligible for certain requirements and meeting the requirements will fetch you good rates.
Refinancing comes with risks. For instance, with longer repayment period, there is a higher chance that you will owe more on your loan than your car is worth even at similar interest rates. So, it's best to avoid long repayment terms. However, they may seem appealing when refinancing for a smaller monthly payment. So, make sure the details you enter in the car refinance calculator is correct, for the most accurate results.
When considering when 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:
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.
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.
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.
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.
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.
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:
Compare your current monthly expenses with the savings you could achieve if you refinance your current auto loan. This is where a car refinance calculator gives you an idea on how much you’ll be paying per month or saving monthly if you refinance.
Review your current interest rate and loan term and calculate the amount of interest you will pay. This will help you in the accurate usage of the refinance car loan calculator and plan better.
To get your vehicle's estimated worth, use resources such as Kelley Blue Book and Edmunds.
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.
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.
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:
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.
Car loan refinancing is heavily dependent on the minimum and maximum amount you are refinancing for.
The terms of a refinanced auto loan are between loan 36 and 60 months. While using a refinance car loan calculator the term length is one of the key factors in determining your rates.
In addition to the amount and the term length your credit score also determines your annual rates. Here are the new and used car APR based on your credit score.
| Credit Score Range | New Car APR | Used Car APR |
|---|---|---|
| Super prime (781 or above) | 5.08% | 7.41% |
| Prime (661 - 780) | 6.70% | 9.63% |
| Near prime (601 - 660) | 9.73% | 14.07% |
| Subprime (501 - 600) | 13.00% | 18.95% |
| Deep subprime (300 - 500) | 15.43% | 21.55% |
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:
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.
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.
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.
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.