Refinance Your Car Loan
If you took out a car loan a few years ago - especially if you had bad credit at the time - you might be paying more than you need to. Refinancing means replacing your current loan with a new one, ideally at a lower interest rate.
Even a small rate reduction can save you hundreds or thousands
Could You Be Paying Less?
Car loan rates change over time, and so do your circumstances. The loan that was right for you two years ago might not be the best option today. Maybe your credit has improved. Maybe rates have dropped. Maybe you just didn't shop around enough the first time.
Refinancing gives you a chance to reset - potentially lowering your interest rate, reducing your repayments, or adjusting your loan term to better suit your current situation. We compare options from 40+ lenders to find you a better deal.
See How Much You Could Save
| Scenario | Balance | Rate | Monthly | Term |
|---|---|---|---|---|
| Current Loan | $25,000 | 12% | $556 | 5 years |
| Refinanced | $25,000 | 8% | $507 | 5 years |
| Your Savings | - | -4% | $49/month | $2,940 total |
Disclaimer: Example only. Actual savings depend on your current loan terms, credit profile, and approved refinance rate. Early exit fees from your current lender may apply. Comparison rate based on $30,000 over 5 years.
When to Consider Refinancing
Refinancing could make sense if any of these apply to you
Your Credit Has Improved
If your credit score has gone up since you took out the loan, you may qualify for better rates now.
Interest Rates Have Dropped
Market rates change over time. If rates have fallen, you could benefit from refinancing.
You're on a High-Rate Loan
If you took out a bad credit loan and your situation has improved, you may get a much better rate.
You Want Different Terms
Extend your loan to lower payments, or shorten it to pay off faster and save on interest.
You Need to Release Equity
If your car is worth more than you owe, you might be able to access that equity.
Your Circumstances Changed
Income increase, debt paid off, or other positive changes could unlock better options.
What to Watch Out For
Important factors to consider before refinancing
Exit Fees on Current Loan
Some loans have early termination fees. We'll help you calculate if refinancing still saves money after fees.
Comparison Rate (Not Just Headline)
The comparison rate includes fees and gives a truer picture of the loan's cost. Don't be fooled by low headline rates.
Total Cost Over Remaining Term
Extending your loan term lowers repayments but may cost more in total interest. We'll show you both options.
Car Value vs Loan Balance
If you owe more than the car is worth (negative equity), refinancing options may be limited.
Fees on New Loan
Establishment fees, ongoing fees, and other charges can eat into your savings. We compare the true cost.
Credit Score Impact
A new loan application creates a credit enquiry. However, if you're approved, consistent payments will help your score.
Our Promise: We'll calculate all the costs and only recommend refinancing if it genuinely benefits you. If staying with your current loan makes more sense, we'll tell you.
How Car Loan Refinancing Works
We make switching loans simple
Tell Us About Your Current Loan
Share your current loan details - lender, balance, rate, and remaining term. We'll assess your refinancing potential.
We Search for Better Options
We compare your current loan against options from 40+ lenders to find potential savings. No impact to your credit score.
Review Your Options
We present clear comparisons showing your potential savings, factoring in all fees and the true cost over time.
Switch and Save
If refinancing makes sense, we handle the switch. Your new lender pays out the old one - minimal hassle for you.
Checking your options won't affect your credit score
Stuck on a High-Rate Bad Credit Loan?
If you took out a bad credit car loan at 18-22% and have been making consistent payments for 12+ months, you may now qualify for a significantly better rate. This is one of the most common - and valuable - reasons people refinance.
Car Loan Refinancing FAQs
Common questions about refinancing your car loan
Savings vary depending on your current rate, the new rate available, and your remaining loan balance. As a rough guide, dropping your rate by 2% on a $20,000 loan could save you around $1,200 over three years. We'll calculate your exact potential savings based on your situation.
Refinancing may not make sense if: your exit fees are high r...
Refinancing may not make sense if: your exit fees are high relative to potential savings, you're near the end of your loan term, your car has depreciated significantly (negative equity), or you can't get a meaningfully better rate. We'll be honest if refinancing won't benefit you.
Yes, and this is often where the biggest savings are. If you...
Yes, and this is often where the biggest savings are. If you took out a high-rate bad credit loan and have since improved your credit through on-time payments, you may qualify for a much better rate now. We specialise in helping people graduate to better loans.
The process typically takes 3-7 business days from applicati...
The process typically takes 3-7 business days from application to settlement. We handle the paperwork and coordinate with your current lender. You'll continue making normal payments until the switch is complete.
Applying for a new loan creates a credit enquiry, which may ...
Applying for a new loan creates a credit enquiry, which may temporarily dip your score by a few points. However, if approved, the new loan replaces the old one on your file - it's not an additional debt. Making consistent payments on the new loan will help build your credit.
Yes. You can extend your loan term to reduce monthly payment...
Yes. You can extend your loan term to reduce monthly payments (though you'll pay more interest overall), or shorten it to pay off faster and save on interest. We'll show you how different terms affect your repayments and total cost.
Still have questions? Contact our friendly team