Auto Refinance Calculator

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See how much you could save with our auto refinance calculator

1. Grab your current auto loan paperwork.

Find a recent bill or log into your lender’s customer portal and note your monthly payment amount, remaining balance, time left on your loan and current auto loan annual percentage rate (APR).

2. Get some offers.

You can’t be sure you’re not leaving money on the table if you don’t shop around. Get a handful of auto refinance offers so you can find the best deal. You can compare offers from up to five lenders using LendingTree’s loan marketplace. It only takes a few minutes and checking rates won’t impact your credit.

3. Crunch the numbers.

Once you know your current auto loan details and what kind of refinance auto loans you could qualify for, it’s time to use our auto refinance calculator. Simply plug each figure into the corresponding box.

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What is auto loan refinancing?

Refinancing a car loan is the act of trading your current auto loan for a new one, ideally one with a lower interest rate. You’ll use the refinance loan to pay off your original loan. In its place, you’ll make payments on your refinance loan.

Refinancing your auto loan can lower your monthly payment in two ways:

If your credit has improved since you took out your current car loan or interest rates have dropped, you might qualify for a lower rate, resulting in a lower bill.
Your new lender may offer you a longer loan term. This will give you more time to pay what you owe, spreading your balance further (which will usually bring down your payment).

Average APRs for auto refinance loans

Credit tier	Average APR
Excellent credit (720+)	7.16%
Good credit (680 - 719)	8.72%
Fair credit (640 - 679)	9.73%
Poor credit (639 or less)	12.10%

Source: LendingTree user data from Q4 of 2024.

Not all cars can be refinanced

Restrictions vary by lender, but certain cars are not typically approved for refinancing. For instance, you might not be able to refinance if your car has more than 100,000 miles. You probably can’t be behind your existing loan, either.

How to refinance an auto loan with LendingTree

Check your credit score

Use LendingTree Spring to get your free credit score. We’ll use your credit score to personalize your auto refinance offers.

Compare your offers

Get multiple offers from up to five lenders by filling out just one form. This will not impact your credit score.

Refinance your car

Once you choose your desired lender, you’ll need to officially apply. If approved, the lender will guide you on how to complete the process.

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When is auto loan refinancing a good idea?

When your credit score has improved. If you’ve improved your credit score since buying your car, you could qualify for a lower APR.
When rates have dropped since you bought your car. If you financed during an inflationary peak and rates drop, that could be an ideal time to refinance.
When you need a lower monthly payment. Extending your loan term when you refinance might get you a lower monthly car payment. That’s because you’ll have more time to spread your loan balance across. Keep in mind that the longer it takes you to pay off your loan, the more overall interest you may pay. Still, that breathing room could be worth it for some.
When you have dealership financing. Allowing the dealer to set up your loan can be convenient, but it also comes at a cost. Dealers have no obligation to shop for the best auto loan rates. And if you’re paying higher interest rates because of in-house financing, consider refinancing your car loan with bad credit.
When you want to add or remove a cosigner. Many auto loan refinance lenders will allow you to add a cosigner. Adding a creditworthy cosigner can help lower your interest rates. If you already have a cosigner but you’d like to remove them, refinancing can help you do that, too. Removing a cosigner will mean that person will no longer be responsible for your loan. On the downside, any positive impact that person had on your rate will no longer apply.

When is auto loan refinancing a bad idea?

If you don’t qualify for a lower rate. Refinancing probably won’t make sense if your credit score hasn’t gone up since you bought your car.
If you don’t have much time left on your loan. If you’re close to paying off your car loan, then refinancing might not be worth it. Even if you qualify for a lower rate, the difference in overall interest you’ll pay might be negligible. Also consider possible title transfer and registration fees that could come with refinancing.
If you still can’t afford your monthly payment. If you still can’t swing your car note after refinancing, you may need to explore how to get out of your car loan, instead.