Auto Refinance Calculator

What is Auto Refinancing and How Can It Save You Money?

Auto refinancing is the process of replacing your current car loan with a new one, typically with better terms such as a lower interest rate, different loan term, or both. This financial strategy can potentially save you hundreds or even thousands of dollars over the life of your loan.

How Auto Refinancing Works

When you refinance your auto loan, a new lender pays off your existing loan and issues you a new one with different terms. The process is similar to your original car loan application but often quicker since the vehicle already serves as collateral.

When to Consider Refinancing Your Auto Loan

You might benefit from auto refinancing if:

• Your credit score has improved since you originally got your car loan
• Market interest rates have dropped significantly
• You want to change your monthly payment amount
• You need to remove a co-signer from your original loan

Benefits of Auto Refinancing

The primary benefits of refinancing include lower monthly payments, reduced interest rates, decreased total interest paid over the life of the loan, and potentially changing lenders for better customer service.

Potential Drawbacks to Consider

While refinancing can be beneficial, it's not always the right choice. Some loans have prepayment penalties, and extending your loan term might mean paying more in interest over time even if your monthly payments are lower.

Using Our Auto Refinance Calculator

Our calculator helps you estimate potential savings before applying for refinancing. Simply enter your current loan details and proposed new terms to see how much you could save each month and over the life of your loan.