Auto Refinancing in Maryland (August 2025)

Reduce your monthly payments with Maryland auto refinancing

Even if you try to ignore rising prices, your auto loan payments can be painstakingly high. If you're looking to escape a bad car loan and improve your credit score, Maryland auto refinancing can help you:

• Reduce your Annual Percentage Rate (APRs)
• Reduce your monthly car loan payments
• Add or remove co-signers or co-borrowers to your loan
• Take a payment vacation or defer your payment
• Change your loan term
• Buy out your car lease at the end of the term
• Get bi-weekly payments and hardship plans

Auto Refinance in Maryland - Unlock savings on your auto loan

• Maryland auto loan applicants might benefit from a cheaper interest rate i.e.; APR through the process of refinancing.
• The remaining balance of your old loan will be paid off by the new lender, and you will no longer be responsible for the payments on that loan.
• Your new loan will have more reasonable monthly payments, and depending on the interest rate, you might save anywhere from $80 to $150 each year.
• The best thing about refinancing is the choice it gives. Since there are so many refinance lenders, you don't have to sign the first deal you get.

A refinance aggregator like Way.com can help you shop around with multiple lenders, compare rates, and choose the offer that fits you best.

Why should you refinance your Maryland auto loan?

If you financed your car purchase with a bank or a dealership, you may have agreed to an overly generous loan. This means that you may be paying more than necessary on a monthly basis. You may have been told that this was the best offer possible, or that your credit wasn't strong enough to get you a decent rate.

Refinancing your Maryland auto loan can have the following benefits:

• Lower APRs: Reducing your interest rate by just 1-2% can save hundreds yearly.
• Reduced monthly payment: Save between $80 and $150 every month for more crucial expenses such as your home, student loans, and personal loans.
• Change co-borrower/co-signer: It's difficult to return a loan on your own; acquire a parent, sibling, or spouse as a co-borrower in order to repay the amount promptly.
• Cash-out refinancing: With cash-out refinancing, you can use your car as collateral if you need cash for an emergency.
• Other benefits: Adding Guaranteed Asset Protection (GAP), Extended Warranty, and you can choose to buy out your lease at the end of the term.

How much can you save through auto refinance in Maryland?

Maryland auto loan refinancing companies may be able to lower interest rates by 1% to 2% on average. One can save as much as $1,850 annually if their credit rating is high.

However, there are many factors to consider when refinancing a car loan, so your actual savings may vary, like:

• Credit score
• Loan amount
• Loan term remaining
• Age of vehicle

When should you refinance your Maryland auto loan?

Wondering what's the right time to refinance? Don't rush to a lender until you meet some of these criteria:

• Have at least 6-12 months passed since the start of your current loan?
• Has your credit score increased above what it was at the start?
• Do you want to reduce your monthly payments and save money on your auto loan?
• Do you want to get rid of certain terms/clauses in the auto loan?
• Do you want to add/remove a co-signer or co-borrower to your loan?

What documents do you need to refinance your auto loan?

It's best to have all of the official loan documentation ready while looking for the finest auto refinance rates in Maryland. This will not only expedite the procedure, but will also assist you in determining what APR you should strive for.

Here's what you need:

Personal Financial Information

• Driver's License
• Credit score: Ideally, a credit score above 700 gets the best rates.
• Social Security Number
• Proof of Income: Pay stubs, bank statements, or tax returns can be considered as income proof.
• Proof of Residence: Mortgage statements, auto insurance policies, utility bills, or property tax bills can serve as proof of residence.

Current Loan Information

• 14-day payoff amount: Your lender can offer you with the remaining loan sum, including the principal and interest for the following 14 days.
• Car Loan-to-value ratio: The LTV will tell you if you are 'upside-down' on your car loan (i.e., owe more than the car is worth). If so, it will be harder to refinance.
• Loan term remaining: You should ideally have more than a year left on your debt.
• Prepayment penalty: Some lenders will penalize you up to 2% of the loan balance if you close early.

Vehicle Information

• Make and Model
• Year (Age)
• Title
• Vehicle Identification Number (VIN)
• Proof of Car Insurance

Auto refinance in Maryland: Eligibility requirements

Your car will be eligible for auto refinance in Maryland if it meets the following broad criteria.

• The car is less than 10 years old (varies depending on the lender)
• The car has a mileage of less than 150,000 (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

The criteria may vary depending on the lender. Ensure you consult with them before deciding to refinance.

Average auto refinance rates in Maryland

*The rates given above are averages: actual 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. These rates are current as of August, 2022.

How to refinance your Maryland auto loan with Way.com

Step 1: Approximate your savings

First, use our online auto refinance calculator to find out if you can save money by refinancing. Your new estimated payment should be less than what you pay now, if at all possible.

Step 2: Search for multiple pre-qualified offers

Do your research, get pre-approved, and compare rates from different lenders before deciding which one is best for you.

Step 3: Choose an offer and start saving

Once you decide on an offer, you need to formally apply by sending in the necessary documents. Be ready for the lender to have a hard credit inquiry on your credit.

How to refinance without hurting your credit

Your credit score will temporarily decline if you refinance your car. However, you can refinance efficiently without hurting your credit in the following ways:

• Rate shop within a certain window: Credit risk companies will count multiple inquiries made for the same reason as one inquiry. For instance, VantageScore gives you a 14-day window, but FICO gives you 45 days.
• Pre-qualify for offers using a soft credit pull: Soft inquiries don't affect your credit score. It can help you find the best few offers and keep you from getting hit with multiple credit hits.
• Check your credit score regularly: If you get your credit score up to more than 700, the credit drop will be a lot smaller.

Why our Maryland auto loan refinance program is great for you

At Way.com, we understand that financing and maintaining a vehicle in Maryland can be challenging. You need all the help you can get to keep up with escalating gas prices, insurance premiums, and monthly loan payments.

That is why Way.com is making car ownership easier across the country. Our AI-enabled fintech platform allows you to:

• Locate and connect to the best refinance lenders
• Compare the best offers and choose the best
• Refinance lease buyouts
• Provides additional perks such as insurance, warranty extension, etc.
• Refinance even with bad credit

... and much more!

What is Way.com?

Way.com is the country's leading car services marketplace and #1 auto super app, making car ownership affordable to millions of Americans. You can save more than $1500/year through our combined 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, 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.