Auto Refinance Calculator

Consider refinancing when interest rates have dropped since you got your loan, your credit score has improved significantly (moving from fair to good can save 2%–4%), or you financed through the dealer and didn't shop around originally. It typically makes sense if you can reduce your rate by at least 1%–2% and you have more than 12 months left on the loan. Most lenders require the car to be less than 10 years old with under 100,000 miles.

Refinancing triggers a hard credit inquiry, which may lower your score by a few points temporarily. However, if the refinance leads to on-time payments on the new loan, your score should recover and potentially improve. Multiple auto loan inquiries within a 14-day window are typically counted as a single inquiry by FICO, so shop around during a short period.

It is possible but more difficult. Being upside-down (owing more than the car is worth) means the lender takes on more risk, so they may offer a higher rate or require gap insurance. Some credit unions specialize in negative-equity refinancing. Before refinancing, consider whether making extra payments to reduce the balance below the car's value might be a better strategy.

Savings depend on your rate reduction, remaining balance, and term. Dropping from 8% to 5.5% on a $20,000 balance with 48 months remaining saves roughly $45/month and about $1,100 in total interest. The higher your balance and rate reduction, the more you save. Use the calculator above to see your exact numbers.