Auto Refinancing in Pennsylvania (August 2025)

Reduce your monthly payments with Pennsylvania auto refinancing

Being a car owner in the 'Keystone State' can be fraught with worries! Besides the rising prices, your auto loan payments may be going through the roof. If you're looking to escape a bad car loan, Pennsylvania auto refinancing can help you:

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

Auto Refinance in Pennsylvania - Unlock savings on your auto loan

• Auto refinancing in Pennsylvania lets you replace your existing high-APR loan with a new one - typically with a lower APR.
• The new lender will pay off the remaining loan balance, freeing you of your old loan.
• The new loan will have lower, affordable monthly payments that can save you between $80-150 depending on your new rate.
• The biggest benefit of refinancing is that you get to choose from a pool of refinance lenders. This helps you to avoid the mistake of signing 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 You Pennsylvania Auto Loan?

If you bought your car through bank or dealership financing, you may have signed on for an overpriced loan. What this means is that you could be paying higher monthly payments than you deserve! Perhaps you were told this was the best deal you could get; or perhaps your credit wasn't that great to warrant a better rate.

Refinancing your Pennsylvania auto loan can have the following benefits:

• Get lower APRs: Reducing your interest rate by just 1-2% can save hundreds yearly.
• Reduce your monthly payment: Save between $80-150 every month, which can be used for more important expenses like your mortgage, student debt, personal loans, etc.
• Add or remove a co-borrower/co-signer: It's not easy repaying a loan alone - get a parent, sibling, or spouse as a co-borrower and pay off the loan quickly.
• Get cash-out refinancing: If you need cash for an emergency, put up your car as collateral with cash-out refinancing.
• Include more benefits in your loan: Add Guaranteed Asset Protection, Extended Warranty, 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 Pennsylvania?

On average, Pennsylvania car owners who refinanced their loans could reduce their APRs by at least 1-2%. With a great credit score, your savings can be as much as $1850/year.

However, remember that refinancing your auto loan involves several factors, which means the savings for every individual can vary. Some of these factors include:

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

When Should You Refinance Your Pennsylvania 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?

When applying for the best auto refinance rates in Pennsylvania, it's best to keep all the official loan documents ready. That will not only speed up the process, but will also give you a realistic idea of what APR you should target.

Here's what you need:

Personal Financial Information

• Driver's License
• Credit score: Ideally, try building your score above 700 to get the best rates.
• Social Security Number
• Proof of Income: You can use pay stubs, bank statements, or tax returns 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 provide you with the remaining loan balance, including the next 14 days' principal and interest.
• 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: Ideally, you should have more than a year left on your loan.
• 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 Pennsylvania: Eligibility Requirements

Your car will be eligible for auto refinance in Pennsylvania 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 Pennsylvania

*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.

How to Refinance Your Pennsylvania Auto Loan with Way.com

Step 1: Estimate your savings

First, use our online auto refinance calculator to determine whether refinancing can save you money. Your new estimated payment should ideally be lower than what you currently pay.

Step 2: Get multiple pre-qualified offers

Shop around, pre-qualify, and compare rates from multiple lenders before choosing one that fits your budget.

Step 3: Choose an offer and start saving

Once you choose an offer, apply formally by submitting the required documents. Be prepared for a hard credit inquiry from the lender.

How to Refinance Without Hurting Your Credit

Refinancing your car will cause a temporary drop in your credit score. However, you can reduce the magnitude of the drop in the following ways:

• Rate shop within a certain window: Credit risk companies allow multiple inquiries to be clubbed together as one inquiry - if done for the same reason. For example, VantageScore allows a 14-day window, while FICO allows 45 days.
• Pre-qualify for offers using a soft credit pull: It involves only a soft credit inquiry and so won't affect your credit score. It can help you shortlist the best few offers and avoid multiple credit hits.
• Check your credit score regularly: If you build your score to above 700, the credit drop will be significantly less.

Why our Pennsylvania Auto Loan Refinance Program is Great For You

At Way.com, we understand that it's not easy to finance or maintain a vehicle in Pennsylvania. You need all the support you can get to handle rising gas prices, insurance premiums, and monthly loan payments!

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

• Find and connect to the best refinance lenders
• Compare the best offers and choose the best
• Refinance lease buyouts
• Include additional benefits like insurance, extended warranty, 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.