Auto Refinance Frequently Asked Questions

Save money. Lowering your interest rate can save you money over the long term, and lowering your monthly car payment can save you money in the short term. Defer a car payment. In addition to lower interest rates, sometimes delaying a car payment is an effective way to have a temporary budget surplus; you have the freedom to spend or save it however you wish. Pay off your car faster by shortening your loan term and/or lowering your interest rate. These factors affect interest accrual. The smaller the amount and the less time spent accruing, the quicker you pay off your principal.

Most lenders won't refinance a vehicle that is older than 10 years old or greater than 140,000 miles. It must be 2010 or newer.

The application process is simple—and it takes just a few minutes to complete. If you qualify, you'll receive an offer in a few minutes.

The bottom line is that, while there is nothing to stop you from trying to refinance at any time, it is generally better to wait at least a short period of time. Wait at least 60-90 days from getting your original loan to refinance. It typically takes this long for the title on your vehicle to transfer properly, a process that will need to be completed before any lender will consider your application. Refinancing this early typically only works out for those with great credit. Consider refinancing after six months. If you have fair to great credit, you will begin to have refinancing options after this length of time. If you are a first-time car loan borrower, wait at least a year to refinance your loan. A first-time borrower typically needs to build up a good car loan payment history before refinancing.

To confirm your information, we may ask for documents such as an image of your driver’s license or paystubs that confirm your income. Don’t worry—you can easily snap a picture to upload documents right from your phone.

Refinancing your car can reduce your interest rate or lower your monthly payment. On average, people who refinance their car loan save up to $150 per month.

When you refinance your current auto loan, your new lender will pay off the balance of your original loan. To secure the new loan, you’ll need to qualify, much like you did for your original auto loan. If you can qualify for a loan with a lower interest rate, you could save money over the life of your auto loan. It may also lower your monthly bill, assuming you stay at the same or longer term.

Bad credit doesn’t automatically exclude you from the potential financial advantages of refinancing. It depends on the amount of money a lender would be willing to lend you. Since the loan is secured with the vehicle, having a car that’s worth more than you owe is an advantage. If you are upside down on your car loan and you have bad credit, you’ll find it particularly challenging to refinance your auto loan with better terms. In this case, you could pay down your existing loan with cash to bring the debt in line with the value of your car.

You may have been required to include a cosigner when you applied for your original loan to make up for a low credit score. Your cosigner bears equal legal responsibility for the debt, so they may want to be removed from the loan at some point. There are several ways to remove a cosigner from your loan and refinancing is one. If you can qualify for a new loan under just your name, your new lender will pay off the original loan, which releases the cosigner from their responsibility to pay back the loan if you stop making payments.

Anyone who is 18 years or older and a U.S. citizen with an existing auto loan can apply to refinance anytime after they have purchased their vehicle. All you need is your personal, vehicle, and current loan information to fill out our online application. makes refinancing easy, we handle all the work from finding the best lenders to funding your new loan.