Auto Refinance in Texas (August 2025)

Get the Best Auto Refinancing in Texas

Feeling betrayed by your car loan lender who promised low auto loan payments but charged you a high interest rate?

By refinancing your Texas auto loan with Way.com, you can:

• Lower your Annual Percentage Rate (APRs)
• Get reduced car loan monthly payments
• Add a co-signer or co-borrower to your new loan
• Defer your monthly payment/take a payment vacation
• Extend or shorten your loan term
• Buyout your car lease
• Get customized loan plans (like hardship plans and bi-weekly payments)

Auto Refinance in Texas - Start Saving Money Today

You aren't the only Texan stuck in a bad auto loan! With average car loan payments almost reaching $600/month, thousands of borrowers in the state are facing stressed finances.

However, that doesn't mean you should stick with it - replace it now with Texas auto refinancing!

• Auto refinancing in Texas can help you reduce your monthly payments by paying off your current loan and taking a better loan with new terms and conditions.
• Besides a lower APR and lower monthly payments, the new Texas auto refinance rates give you the benefit of choice.
• Refinance platforms like Way.com help you save time and money by connecting you directly to pre-qualified offers. Choose one that fits your budget and start saving!

Why Should You Refinance Your Texas Auto Loan?

When you first financed your car through a bank or dealership, you may have signed on for an APR that seemed fair. However, a few months into the loan, you may realize that you could've got a lower rate. It may even make you regret taking the loan in the first place!

However, if your credit profile has improved since then, you can choose to refinance your Texas auto loan and get the following benefits:

• Get lower APRs: The average Texan with a good credit score (>660) can reduce interest rates by at least 1-2%.
• Reduce your monthly payment: You can use the money saved to repay other loans, spend on your household, or fulfil emergency requirements.
• Add or remove a co-borrower/co-signer: If you're struggling to pay the current loan, refinance and add a spouse, parent, or close friend as co-signer.
• Get cash-out refinancing: Need emergency cash? Put up your car as collateral with cash-out refinancing.
• 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 Texas?

On average, borrowers who refinanced their auto loans in Texas state have scored 1-2% lower APRs than their first loan and save between $800-$1500 every year.

The amount of money you can save through auto refinancing typically depends on not just the lender but on each individual's credit profile. Some of these factors include:

• Your credit score
• Payment history
• Pending loans
• Loan term left
• Remaining loan balance

When Should You Refinance Your Texas Auto Loan?

Some borrowers may find out that they're overpaying soon after taking a new loan, while others only discover it a few months down the line. Whichever situation you find yourself in, don't rush to apply for auto loan refinance rates in Texas unless you fulfil certain conditions:

• At least 90 days should have passed since you took your current loan
• Your credit score should have increased above what it was when you took the first loan
• You might want to reduce your monthly payments and save money on your auto loan
• You may need to get rid of certain terms/clauses through refinance
• You may want to add/remove a co-signer or co-borrower

What Documents Do You Need to Refinance Your Auto Loan?

Auto refinancing in Texas will go smoothly if you the following official loan documents ready. Here's what you need:

Personal Financial Information

• Driver's License
• Credit score
• Social Security Number
• Proof of Income: Like pay stubs, bank statements, or tax returns
• Proof of Residence: Like property tax bills, mortgage statements, auto insurance policies, and utility bills.

Current Loan Information

• 14-day payoff amount: Ask your lender to provide details of the remaining loan balance, including the next 14 days' interest.
• Car Loan-to-value ratio: Refinancing is not worth it if you are “underwater” on your car loan i.e., owe more than what the car is worth.
• Loan term remaining: At least six months should have passed since you took the original loan, and you should have at least a year remaining.
• Prepayment penalty: Some lenders will penalize you up to 2% of the loan balance if you close early. Ensure the penalty isn't too high before refinancing.

Vehicle Information

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

Auto Refinance in Texas: Eligibility Requirements

Typically, your car will be eligible for auto refinance in Texas if:

• It is less than 10 years old
• It has mileage less than 15,000

However, some lenders have slightly different criteria depending upon the make and model of the car. Apart from the vehicle criteria, you should also fulfil financial criteria like:

• A verifiable income source
• A valid driving license
• A valid registration
• Full coverage insurance
• Consistent payment history on your current loan

Average Auto Refinance Rates in Texas

*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 Texas Auto Loan with Way.com

Step 1: Calculate how much you can save

An online auto refinance calculator can help you estimate your new monthly payment. Simply input the desired Texas auto refinance rate and compare the amount with your current one. If you have a good credit profile, you can reduce your APRs by at least 1-2%.

Step 2: Pre-qualify for multiple offers and shop around

Don't settle on the first offer you see. You can save more money by comparing offers from multiple lenders. You can also pre-qualify for several offers and choose one that's right for you!

Step 3: Choose an offer and start saving

Be prepared for a hard credit inquiry when applying for your preferred offer. After that, all you need to do is submit the required documents, and your lender will take care of the rest!

How to Refinance Without Hurting Your Credit

Applying for auto refinancing will result in a hard credit inquiry and at least a slight dip in your credit score. However, you can blunt  the impact to your credit score in the following ways:

• Try 'rate shopping' before choosing an offer i.e., apply with multiple lenders within a certain window. For example, VantageScore allows a rate-shopping window of 14 days – all hard inquiries made within this period will be treated as one inquiry.
• Try to pre-qualify for offers using a soft credit pull. That way, you can shortlist, compare, and then choose an offer before applying formally.
• Use the one free credit report provided every year by credit bureaus to keep track and build your score before applying.

Why our Texas Auto Loan Refinance Program is Great For You

At Way.com, we understand that rising car loan and maintenance costs in Texas have made life hard for car owners. Every dollar saved on your car can be used for more important things - like repaying student debt, investing for your retirement, and paying for household necessities.

That's why 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!

What is Way.com?

Way.com is the country's #1 car super app and marketplace for car services. We're making car ownership affordable to millions of Americans and helping you save more than $1500/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.