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.

Below you'll some of the most common refinance questions and of course, you can ask your own if you don't find the answer you're looking below.

If this is the case, then feel free to fill out the simple form below with your refinance questions

Here's what you'll find below:



Common Refinance Questions


Question - Where can I find lenders to refinance my auto loan?

Answer - There are two sources that I've found are best for handling your auto loan refinance online...

My first recommendation is My Auto Loan. They will provide with up to 4 competing quotes by filling out just one simple application. They work with lenders advertising refinance rates as low as 2.79% (as of this writing). See for yourself and apply if you like what you see. Take a look at today's rates here -> "Auto Refinance"

They look have lenders that work with a wide range of credit, but really bad credit may not get approved. They offer some excellent refinance rates if you meet their criteria.

In addition, I'd recommend your local credit union. They'll be more apt to work with you if there are some credit issues and/or if you are refinancing an older vehicle or it has higher miles.

Check out Money Aisle's Reverse Rate Auction. You'll not only find local credit unions, but other banks as well. The fun part is watching rates drop as the auction moves forward.

It's really easy to start an auction and it only takes a matter seconds. The only thing you need to know to start one is your credit score (at least a rough idea of what it is). You can get your score here - Free Credit Score!

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.

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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.

If you have the 12 months, Money Aisle will definitely be a good source for you under these circumstances. Credit unions are way more likely to give someone with limited credit a good loan with a good rate.

If you had bad credit and needed a cosigner, then it may take a bit longer (maybe 18-24 months) or you may need some money down to help strengthen the deal in the eyes of the lender.

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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.

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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.

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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.

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What Other Visitors Have Asked

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

GAP Cancellation After Refinancing 
Question: I just refinanced my car and received a check for the dealer GAP cancellation. Is it necessary to put that check towards my loan now? …

Can I Refinance A Car Not in My Name? 
Question: Can I refinance a car not in my name? My dad bought me a car when I graduated college at a very high interest rate. He is still the …

Poor Credit Refinance to Avoid Repossession 
Question: We need poor credit refinance to avoid repossession. We only owe $6500 on our 2006 Subaru and we came into hard times with unemployment …

Help With Auto Loan Refinance After Bankruptcy 
Question: I need help with auto loan refinance after bankruptcy. I have an issue where due to divorce and some issues with health I had to …

Refinancing My Car Loan at a Lower Interest Rate 
Question: I bought my car in 2007 and my interest rate is like 16.9% or something crazy like that. I am interested in refinancing my car loan …

Vehicle Repossessed Need Lender to Buy It Back 
Question: I just had my vehicle repossessed and they said if I can find a new finance company for the car then I can get the car back. What company …

Where to Refinance My Car Loan 
Question: I'm wondering where to refinance my car loan. I purchased a new 2011 car with interest rate 7.9% thru the dealership for 72 months. …

Refinance Auto Loan With Chase Bank 
Question: My aunt got a call from Chase bank to talk about refinancing her auto loan that she got from them. She bought in 2008 and still owes …

How Do I Apply to Refinance My Car 
Question: How do I apply to refinance my car? I am wanting to lower my car payments as my credit is now better than it was when I first bought …

How Long Before I Can Refinance My Car Loan? 
Question: How long before I can refinance my car loan? I am not happy with the interest rate or local bank the dealership used to finance my …

How Soon After Buying a Car Can I Refinance 
Question: I just bought a car but the interest rate is high and I was wondering how soon after buying a car I can refinace my auto loan. Answer:

Auto Refinance With Bad Credit in the Past 
Question: Wanting to auto refinance with bad credit in the past. I bought my first car last April and have a pretty high interest rate (comparatively). …

Need to Refinance from a High Interest Rate Auto Loan 
Question: Americredit financed my car with a 17% interest rate. I am currently having financial hardship and need to get a lower interest rate …

Do i need to use my original cosigner to refinance my auto loan? 
Question: I got approved to refinance my auto loan on my own, but the bank that is doing the refi is telling me that California state law requires …



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 ..



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