Auto Loan Refinancing Explained: Lower Your Car Payment and Save

We're all looking for ways to save money these days, but there could be one in your garage.

Refinancing your auto loan from a bank or dealer could save cash every month to give you more breathing room, or help you pay off your auto loan faster.

What is refinancing?

Refinancing of an existing auto loan means you're paying off existing higher-rate bank or dealer financing with a better loan, typically at a lower rate and with more favorable terms that better suit your budget.

Who should refinance?

Not every auto loan should be refinanced. If you're just a few months from paying your car off, it's probably a good idea to stay with that loan unless the rate is ridiculously high.

But if your credit score has improved since you took the bank or dealer loan, talk to us to see if you'd qualify for a lower rate. Similarly, if you have less debt than you did when you applied for their loan, you may qualify for a lower rate than they gave you. There's no fee to see what your rate would be with us — just potential savings for you.

Dealers make it seem very convenient to quickly commit to their financing so you can drive off with your new car, but buyers often get stuck with higher rates and longer terms in the process. If you think that might be your situation, find out by contacting us with your existing loan details.

Breathing room

Some members choose to refinance their loan at a lower rate and for a longer term. Although this may extend the repayment time, it lowers your monthly payment and frees up cash for more breathing room in your budget. We can meet with you to run the numbers in different scenarios to see what this might look like for you.

Lease buyouts too

If you're in a lease with a car you like, and you're thinking about buying it rather than turning it in when the lease ends, the payoff amount can be financed with us, if your lease allows. Talk to us before your lease ends to see how we can help.

Sneak peek at your refinancing savings

Our loan payment calculator lets you check the numbers and find out how much a lower rate could save you if you refinance your existing bank or dealer loan. Remember that if the calculator indicates that you'd save $40 a month, for example, that might not seem like a lot. But, when you multiply that by a couple of years that's nearly $1,000 extra in your pocket.

Our team is here to help you run the numbers, look at your specific scenario and see if we can save you money.