Free Auto Refinance Calculator

Auto Refinance Calculator

See exactly how much you save by refinancing your car loan — monthly payment reduction, total interest saved, and break-even month. Compare rates across all credit score tiers.

$0
Typical refi cost
no origination fees
6.93%
Avg prime used car rate
Experian Q3 2025

Auto Refinance Calculator

Auto Refinance Details

Current Loan
Remaining Balance
$
Current APR
%
Months Remaining
mo
Current payment$486.00/mo
New Loan
New Interest Rate (APR) avg used: 6.93%
%
New Loan Term
Lender Fees / Refi Costs often $0
$
Your Credit Score
New payment$442.40/mo
Monthly savings−$43.59

Enter your current loan and new rate to see your refinance savings

When to Refinance Your Car Loan

ScenarioActionWhy
Credit score improved 40+ ptsRefinance immediatelyRate likely dropped 1–2%+
Dealer loan with no negotiationRefinance within 60 daysDealers mark up rates 1–3%
Market rates dropped 1%+Run the calculator firstEven small drops save on large balances
Financial hardship / need cash flowConsider longer term refiLowers payment; may cost more total
< 12 months remainingDon't refinanceMost interest already paid
Car > 150K miles or > 10 yrsCheck lender eligibilityMany lenders won't refinance
Upside down (owe > value)Possible — check LTV limitsSome lenders allow 125%+ LTV

The Dealer Rate Markup — Why Refinancing Pays

Car dealerships typically submit your loan application to multiple lenders, then mark up the rate 1–3% above what you qualified for — keeping the difference as profit. This is called the "dealer reserve." It's legal and standard practice.

Example: You qualify for 7.5% APR. The dealer submits at 10.5%. On a $25,000 loan for 60 months, that 3% markup costs $2,380 extra in interest. Refinancing immediately with your bank or credit union recovers most of that.

Best Auto Refinance Lenders (2024)

  • Credit unions — typically lowest rates, especially for members. Navy Federal, PenFed, and local credit unions frequently beat banks by 1–2%. Joining is usually simple.
  • LightStream — for 660+ FICO, competitive rates, no fees, same-day funding possible.
  • OpenRoad Lending — specializes in auto refi, works with a range of credit scores.
  • Your current bank — if you have a strong relationship, existing banks sometimes offer loyalty rates.
  • RefiJet / MyAutoloan — marketplace lenders that compare multiple offers in one application.

Refinancing Timing Tips

  • Don't wait too long. After 12 months, much of your early interest is paid. The later you refinance, the less you save.
  • Shop within a 14-day window. Multiple auto loan applications in a short window count as one hard inquiry under FICO scoring.
  • Keep the same term if possible. Refinancing a 48-month remaining loan into a new 60-month loan may lower your payment but costs more total — run the calculator to verify.
  • Skip prepayment penalties. Most modern auto loans have none, but verify before refinancing.
FAQ

Auto Refinance — Common Questions

When should I refinance my car loan?
Refinance when: (1) Your credit score improved — even 40–60 points could qualify you for a significantly lower rate. (2) You got a dealership loan and didn't negotiate — dealer finance offices routinely mark up rates 1–3% above what you'd qualify for directly. (3) Rates have dropped since you bought. (4) You need lower monthly payments for cash flow. Avoid refinancing when: you're in the last 12 months of the loan (most interest paid), or the car is over 10 years old or 150,000+ miles.
Does auto refinancing cost money?
Auto refinancing is usually free. Most auto lenders charge no origination fees or application fees — the rate differential is how they profit. Some states charge a small title transfer fee ($15–$75). Compare this to mortgage refinancing, which costs 2–5% of the loan in closing costs. The low cost of auto refinancing means even modest rate drops are worth it.
Can I refinance if I'm upside down on my car?
Being upside down (owing more than the car is worth) makes refinancing harder but not impossible. Some lenders will refinance up to 125–150% of the car's value. The key issue: you're refinancing debt on a depreciating asset, which extends the time you're underwater. Focus on getting a lower rate to reduce total cost, and consider making extra principal payments to get right-side-up faster.
How long does auto refinancing take?
Typically 1–5 business days. Online lenders (LightStream, OpenRoad, RefiJet, MyAutoloan) can often approve and fund in 24–48 hours. Credit unions sometimes take longer but often offer the best rates. Once approved, the new lender pays off the old loan directly, and you start paying the new lender. Your old lender will mail you a refund of any prepaid interest.
What credit score do I need to refinance a car?
Most mainstream lenders require 580+ FICO. For the best rates (below 7% APR on a used car), aim for 680+. At 720+, you qualify for prime rates. Credit unions are often more flexible on credit scores than banks and tend to offer lower rates — membership is usually easy to obtain. Even subprime borrowers (580–620) can save by refinancing if their original loan was from a dealer with a high markup.
Should I shorten or keep the same term when I refinance?
Shorter term = higher monthly payment but less total interest. Same term = similar payment, just lower rate and total savings. Longer term = lower monthly payment but potentially more total interest paid (even at lower rate). Recommendation: Try to keep the same remaining term or shorter. If you had 48 months left and refinance into 60 months, you're adding a year of payments — the lower rate might not compensate. Our calculator shows total interest for both scenarios.

Ready to Refinance Your Auto Loan?

Compare auto refinance rates from top lenders. No impact to your credit score.

Compare Auto Refi Rates Auto Loan Calculator