Free refinance tool
Auto Refinance Calculator — Should You Refinance?
Compare your current auto loan against a refinance offer. See monthly savings, total interest saved, and the break-even point — instantly.
Compare Your Loans
Enter your current loan on the left, the refinance offer on the right.
Current Loan
Refinance Offer
Current loan
Refinanced loan
Should You Refinance Your Auto Loan?
Refinancing replaces your current auto loan with a new one — ideally at a lower APR, a better term, or both. It’s worth it when the total savings clearly exceed any fees, and the break-even point comes well before you plan to sell or pay off the car.
When Refinancing Makes Sense
- Your credit improved since you bought the car — the #1 reason to refinance.
- Rates dropped — even 1–2% lower APR saves hundreds on a typical balance.
- You need a lower payment — extending the term cuts the payment (but usually raises total interest).
- You want out early — a shorter term at a lower rate pays the car off faster.
When to Skip It
- You’re underwater (owe more than the car’s worth) — most lenders won’t refinance.
- Only a few months remain — savings won’t beat the hassle.
- The new term is much longer — a lower payment can still mean more total interest.
Comparing a refinance against a brand-new loan? Our auto loan calculator shows what a new loan would cost month by month.
Frequently Asked Questions
How much can I save by refinancing my car loan?
It depends on your balance, rate drop and remaining term. Dropping from 9.5% to 6% on a $22,000 balance with 48 months left saves roughly $1,900 in interest. Enter your numbers above for an exact figure.
Does refinancing hurt my credit score?
You’ll see a small, temporary dip from the hard inquiry (usually under 10 points). Multiple auto-loan inquiries within a 14-day window count as one, so shop around quickly.
Are there fees to refinance a car loan?
Often none — many lenders charge $0. Some charge a title transfer or lien fee ($50–$150). Enter any fees above to see your true break-even point.
Can I refinance if I’m underwater on my loan?
Usually not — lenders rarely refinance more than the car’s value. Pay down the balance or add cash to close the gap first.
How soon after buying can I refinance?
Most lenders want 60–90 days of payment history and the title transferred. There’s no universal waiting period, but 3–6 months is typical.
Should I extend the term when refinancing?
Only if you need the lower payment. Extending the term almost always increases total interest paid, even at a lower APR. Compare both options above.
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