Refinance
My Auto Loan

Your Refinancing
Questions Answered

Who, what, when, where, why and how to refinance my auto loan are rather common refinance questions I'm asked by both my dealership customers as well as visitors to this site.

I've created this page to hopefully help get you quick answers to your refinance questions. Although these are fairly common questions, you still may have questions not answered here...

If this is the case, then feel free to fill out the simple form below with your refinance questions and I'd be more than happy to help however I can.

Common Refinance Questions

Question - What are some good sources to refinance my auto loan?

Answer - My number one recommended source is up2drive.com (BMW Bank of North America). They have excellent refinance rates and an easy, fast application process.

All you'll need to apply is a 650 credit score (or higher) and a decent credit history. Apply today and find out for yourself how low your payments will go!

In addition, I'd recommend your local credit union (older cars with higher miles). I've found that local banks are oftentimes not a very good source for refinancing, because they tend to mark up their refinance rates and are not very competitive when it comes to used cars.

Question - I'm a first time buyer and had a cosigner to help me buy, how long do I have to wait to refinance my auto loan?

Answer - Assuming you had no credit or very limited credit at the time of purchase it will typically take a bare minimum of 6 months, with 12 months, or more, being more likely.

Most refinance lenders will still consider you a first time buyer until you've had a 12 month payment history on the car.

Question - I have good credit, but the dealer told me I'd need to wait 6 months before I could refinance my auto loan in order to avoid penalties. Is this true?

Answer - Excuse me while I chuckle sarcastically...not at the question, but at the dealer that told you this. Definitely read your contract closely before following the rest of this answer to ensure that there is not some very unusual circumstances that I'm unaware of.

More than likely this is simply the finance manager using a ploy to get you to make 6 payments so they will not be charged back the commission they are making from arranging your financing.

[See: Car Dealer Finance Profits]

FYI: 6 months is the average charge back period (lender charging back the dealer) for most auto lenders.

Don't fall for this...You can typically refinance your auto loan at any time. There should be a pre payment penalty clause in the Federal Truth and Lending section of your contract. Most states will not allow a penalty for early payoff.

Question - I had bad credit when I bought my car and the dealer told me it would take about 6-8 months before I could refinance my auto loan to lower my ridiculously high interest rate, does that sound right?

Answer - Even though auto loans are an excellent way to build/rebuild credit, they are not going to be all you'll need to do.

There are many variables involved in this type of situation and from past experience I'd say it would be more realistic to wait about 18-24 months.

In addition to making on time car payments it's recommended that you work to clear up as many credit discrepancies as possible prior to applying for refinancing.


Question - How much will it cost to refinance my auto loan and are the savings worth it?

Answer - If you are applying with a lender that is charging you a fee to refinance, then look somewhere else. Most lenders do not charge a fee to refinance and if they do it is usually a small document preparation fee, $40-$50.

The only fee you may incur is a title transfer fee and that will vary from state to state, but is usually in $5 to $65 range.

To answer your question directly, yes the savings far out weigh any minimal cost to refinance.

Follow the links to read more about what other visitors have asked:

Car Loan Refinancing Right for Me?
Some refinance questions from Tammy T. in New York
Would car loan refinancing be right for me? I'm currently financed with Capital One Auto Finance and am not happy with the interest charges. Yes, no and where to go if so?

Can a dealership help me to refinance my car loan
Some refinance questions from Luis in Downey, CA
Can I refinance my auto loan at the dealership I bought my car or can I just go anywhere. I'm looking to refinance the term of the loan and I have pretty ..

Bad Credit Car Loan Refinance Rates
A question from Dustin in TX
I currently got screwed on a used car deal where the price was supposed to be $6,500 and after getting excited and not paying attention to what i was signing I ended up with a 10,000 dollar car plus 18% apr ..

Online Auto Refinancing vs. Credit Unions
A question from Sam in Olympia, WA
I have about $6500 in my auto loan outstanding and the current rate I am paying is 9.24% with 34 months remaining with my current lender. I have excellent credit too. I feel that at $224 a month, I am paying way too much. What do you think would be better, to refinance my auto loan ..

What's your refinance question(s)?

During normal business hours (M-F 8-7), I strive to respond within 1-2 hours (often quicker). Outside of that, I will get back to you just as soon as I can... In addition, your personal email information stays personal and I do not share with others. Justin

Take a look below to see questions from other visitors to this page...

return from Refinance My Auto Loan to Auto Refinance Loans main