How much could you save monthly with auto refinance? Use our auto refinance calculator and find out what you are looking at monthly.
$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.
Our auto loan refinance calculator will help determine how much you can save on your monthly payments, interest, or both.
To use the auto refinance calculator, you should input the following data to get the most accurate results.
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.
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:
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 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:
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.
To calculate the amount of interest you will pay, get to know your current interest rate and loan term.
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.
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 |
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.
A lot depends on the lender when it comes to the maximum and minimum car loan refinance amounts.
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 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% |
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.
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.