Auto Refinancing in Kentucky (August 2025)
Refinance your Auto loan Fast and Easy with Way.com!
Save up to $1850 per Year
APR as low as 5.74%
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Start saving money today – find the best auto refinancing in Kentucky
Car owners in the Bluegrass State are bound to be a worried lot. Besides the skyrocketing gas prices, you might also feel the pinch of expensive auto loan payments! But that’s no reason to resign yourself to your fate – easy refinancing is just a step away.
You don’t deserve to be stuck in a bad car loan – refinance your Kentucky car loan with Way.com today and get the following benefits:
- Lower your Annual Percentage Rate (APRs)
- Lower your monthly payments
- Change your loan term
- Payment vacations/defer a payment
- Refinance to buy out a lease
- Add a co-signer/co-borrower to your loan
- Plans with bi-weekly payments
Auto Refinance in Kentucky – Unlock savings on your auto Loan
Kentuckians are known to enjoy the laid-back life – but overspending on your car can take that idea for a toss! No matter how you financed your car, you could feel stuck in an endless loop of expensive loan payments!
Kentucky auto refinancing helps you pay only what is necessary on your car loan.
- Auto refinancing in Kentucky allows you to replace your current loan with a new one from a new lender.
- This new loan will typically have better terms and conditions - like a lower APR and monthly payments.
- The new lender will pay off your loan balance, and you can start paying more affordable payments in the coming months.
- Most importantly, the Kentucky auto refinance rates give you the freedom to choose between multiple rates and lenders.
- You can save more in the long run – especially if you use a refinance aggregator like Way.com.
Why Should I Refinance My Kentucky Auto Loan?
When taking an auto loan from a bank or dealership, you will be coerced into signing on for an offer that seems fair at first, but often isn’t. Most lenders will tell you that you can’t get a better deal elsewhere – especially for your credit score.
The truth is, you probably can - it’s just a matter of finding the right lender. If you want to replace your high APR with a lower one that you rightly deserve, refinance your Kentucky auto loan and get the following benefits:
- Get lower APRs: Reduce your interest rates by 1-2% and save thousands in the long run.
- Reduce your monthly payment: Save between $50-150 every month and save more money for your other expenses.
- Add or remove a co-borrower/co-signer: Pay off your loan sooner by getting a co-borrower on your loan.
- Get cash-out refinancing: Refinance your Kentucky car loan and borrow an amount equal (or more) than the car’s current resale value, while getting a portion in cash.
- Include more benefits in your loan: Add Guaranteed Asset Protection, Vehicle Service Contract, and other benefits to your refinanced loan.
- Buy out your lease at the end of the term.
How Much Can You Save Through Auto Refinance in Kentucky?
On average, Kentuckians who refinanced their auto loans were able to score 1-2% lower APRs and saved between $800-$1850 every year. However, the exact amount may vary for each individual, as it depends on other factors like:
- Your current credit score
- Debt-to-income (DTI) ratio
- Car’s loan-to-value (LTV) ratio
- Loan balance
Your estimated monthly loan payment is
$684.10/mo
Monthly savings
$55.90
Difference in interest
$2683.20
When Should You Refinance Your Kentucky Auto Loan?
If you've found out that you’re overspending on the loan, don’t rush to refinance it with the nearest lender! You’ll just be making the same mistake.
There are certain conditions you should meet before connecting with a lender. Apply for Kentucky auto refinancing only if:
- At least 6-12 months have passed since you took your current loan
- Your credit score has increased above what it was a year ago
- If you desperately want to reduce your monthly payments and save money
- You want to change some loan terms/clauses
- You want to add/remove a co-signer or co-borrower
What Documents Do You Need to Refinance Your Auto Loan?
Before you apply for auto refinancing in Kentucky, keep these official documents ready. Here’s what you need:
Personal Financial Information
- Driver’s License
- Credit score
- Social Security Number
- Proof of Income: Pay stubs, bank statements, or tax returns.
- Proof of Residence: Property tax bills, mortgage statements, auto insurance policies, or utility bills.
Current Loan Information
- 14-day payoff amount: Your lender can provide you info on how much your remaining loan balance is – including the next 14 days’ interest.
- Car Loan-to-value ratio: The LTV tells you if you are ‘upside-down’ or ‘underwater’ on the loan. If so, then refinancing your loan will be hard.
- Loan term remaining: Ideally, you should have more than a year left on your current loan for refinancing to benefit you.
- Prepayment penalty: Ensure that your current lender does not penalize you for closing the loan early. Some lenders can charge up to 2% of the loan balance as prepayment penalties.
Vehicle Information
- Make and Model
- Year (Age)
- Title
- Vehicle Identification Number (VIN)
- Proof of Car Insurance
Auto Refinance in Kentucky: Eligibility Requirements
The exact eligibility requirements vary depending on the lender. However, your vehicle will likely qualify for auto refinancing in Kentucky as long as:
- The car is less than 10 years old (varies depending on the lender)
- The car has a mileage of less than 100,000 (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 Kentucky
| LOAN TERM | Excellent
Credit Score (750-850) |
Good
Credit Score (700-749) |
Fair
Credit Score (640-699) |
Poor
Credit Score (639 or less) |
|---|---|---|---|---|
| 36 months | 3.21% | 4.28% | 4.99% | 7.46% |
| 48 months | 3.31% | 4.80% | 6.59% | 9.61% |
| 60 months | 3.36% | 4.66% | 6.36% | 9.41% |
| 72 months | 3.74% | 4.61% | 6.49% | 9.51% |
*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 Kentucky Auto Loan with Way.com
Step 1: Estimate your savings
Use our online auto refinance calculator to input your desired rate and loan term. If your new estimated payment is lower than what you're currently paying, refinancing will benefit you.
Step 2: Shop around and pre-qualify with multiple lenders
You get the best offers by comparing rates from several lenders. With Way.com, you can pre-qualify in just minutes, check out all the lenders you qualified for, and pick the one with the best rates!
Step 3: Choose an offer and start saving
Complete your application, submit a few simple documents, and get ready to save! While the lender will run a hard credit inquiry on your profile, you can easily make up for the credit drop in just a few months of consistent payments.
How to Refinance Without Hurting Your Credit
Applying to any lender for refinancing your Kentucky car loan will impact your credit score by at least a few points. However, you can reduce the impact to your credit score in the following ways:
- ‘Rate shop’ within a certain date range i.e., apply to multiple lenders within a certain window. All hard inquiries for the purpose of refinancing and falling in that range will be considered as one. FICO allows a rate-shopping window of 45 days and VantageScore allows for 14 days.
- Pre-qualify for offers using a soft credit inquiry. Since a soft credit inquiry does not affect your credit, it can help you shortlist and compare offers before applying formally.
- Build your credit score before applying: The higher your score, the smaller the drop in credit will be. You can use the one free credit report per year provided by credit bureaus to keep track and build your score before applying.
Why our Kentucky Auto Loan Refinance Program is great for you
At Way.com, we understand that Kentuckians are reeling from expensive gas prices, insurance premiums, and car maintenance costs. You don’t need expensive car loan payments adding to your woes!
Way.com is simplifying car ownership across the country - starting with car payments! Our AI-enabled fintech marketplace allows you to:
- Find the best refinance lenders
- Pre-qualify for multiple offers and compare rates
- Refinance lease buyouts
- Include additional benefits like GAP, Extended Warranty, etc
- Refinance your car with bad credit
… and much more! Every dollar saved on your car can be used for more important things - like repaying student debt, household finances, and daily necessities.
What is Way.com?
Way.com is the country’s #1 auto super app and all-in-one marketplace for car services. We’re making car ownership affordable to millions of Americans, with more than 3 million satisfied customers so far.
You can save more than $1850/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, a 4.7 rating on Google Play and 4.9 on the iOS app store.
Auto Refinance in Kentucky: Frequently Asked Questions
Which lender provides the best auto refinance rates in Kentucky?
Most of the refinance lenders in Kentucky offer comparable rates – a lot more depends on the credit profile of the borrower. The specific rates offered to each borrower depend on factors like:
- Your credit score
- The loan amount to refinance
- Your debt-to-income ratio
- Car’s loan-to-value ratio
Here’s a hack: first use a refinance aggregator like Way.com to pre-qualify for multiple offers, and then shortlist one or two.
Does refinancing a car hurt my credit?
Refinancing your Kentucky car loan will result in a temporary credit drop by at least 4-5 points. However, the drop will be negligible if you have an excellent credit score (greater than 740). Even if your credit drops, you'll easily be able to build it up with consistent payments.
What is a prepayment penalty on a car loan?
A prepayment penalty is when a lender charges a fee for closing a loan early. This is because lenders make money through the interest accrued on your loan every month – and they lose out on this if you prepay the loan. They may charge you up to 2% of the loan balance as a prepayment penalty to cover their interest losses.
What is the average auto refinance interest rate?
The average auto refinance rate for a borrower with moderate or fair credit is between 3.5-4.5%. However, it varies greatly depending on credit score, income, the debt amount, and more.
What happens when you defer a car loan payment?
You can defer your car loan monthly payment if you have the lender’s permission. You may have to furnish a letter showing proof of hardship. However, this cannot be extended for more than 3 months and does not mean that the amount is written off. You will still have to pay the pending amount and any interest accrued on it.
What is cash-out refinancing in Kentucky?
Cash-out refinancing lets you borrow an amount equal to or more than the current resale value of the car. You can use one part of the amount to pay off your current car loan, while getting another portion of it in cash – hence ‘cash-out.’ You will be eligible for cash-out refinancing as long as you have positive equity in the vehicle.
Do you find Auto refinance complex? Here is the ultimate Auto Refinance FAQ Guide with answers to all your questions!