What is an Auto Refinance?
An auto refinance is the process of applying for a new auto loan to pay off your existing auto loan, hopefully with a better interest rate and better terms. If your credit score has improved or if interest rates have gone down since you first financed your car, refinancing your auto loan could lower your monthly payment and save you thousands of dollars over the life of your loan.
- Auto Refinance
- An auto refinance is the process of applying for a new auto loan to pay off your existing auto loan, hopefully with a better interest rate and better... <a href='/glossary/what-is-auto-refinance' title='See the full definition of Auto Refinance'>read more</a>
- Cash Back Auto Refinance
- Cash back auto refinances could give you cash when you refinance your loan, however, you'll want to make sure you are lowering your interest rate (and... <a href='/glossary/what-is-cash-back-auto-refinance' title='See the full definition of Cash Back Auto Refinance'>read more</a>
- Upside Down Car Loan
- An upside down car loan is a situation in which you owe more on your car than it's worth. <a href='/glossary/what-is-upside-down-car-loan' title='See the full definition of Upside Down Car Loan'>read more</a>
- Vehicle Appraisal
- A vehicle appraisal determines how much money your car is currently worth. <a href='/glossary/what-is-vehicle-appraisal' title='See the full definition of Vehicle Appraisal'>read more</a>
Save Money On Your Auto Loan
If you're struggling with your car payments or just hoping to save some money on your auto loan, now could be a great time to refinance your current auto loan.
By refinancing, you'll receive a new car loan with a lower interest rate and lower monthly payments. If you keep the term the same, you could save thousands over the life of the loan. You can also choose to extend your term to get your monthly payments even lower, but keep in mind this could cause you to pay more money in interest over the life of the loan. Estimate your auto refinance with our auto refinance calculator to see if you can save money by refinancing. Whatever you're looking for, let LendingTree help you find opportunities to save on your car loan.
When to Refinance Your Car Loan
If your credit rating has improved or interest rates have gone down, we're here to help. When you submit your information to us, we're going to help you get offers from multiple lenders who are all competing to win your business to help you refinance your car loan. That means you're going to be in a good position to get a better deal on your auto financing and ultimately save money.
Pros of an Auto Loan Refinance
- Qualify for a better interest rate
- Reduce your monthly car payments
- Save money on the life of your loan
- Secure more flexible loan terms or payment options
Cons of an Auto Loan Refinance
- If you extend your term, you could pay more money in interest over the life of the loan
- If you're upside down on your car loan, you might not qualify
- If you refinance to a variable interest rate from a fixed interest rate, your rate could rise and your payments will increase
Car Loan Refinance Rates
|36 Months||APR2.24%||Interest Rate2.24%||Loan Amount$9,500||Monthly Payment$273|
|48 Months||APR2.24%||Interest Rate2.24%||Loan Amount$12,500||Monthly Payment$272|
|60 Months||APR1.99%||Interest Rate1.99%||Loan Amount$37,711||Monthly Payment$661|
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