Auto Loan Refinance Calculator: Estimate Your Savings in Seconds

Looking for ways to reduce your monthly car payments and your overall debt burden? Depending on your current loan and available rates, refinancing your car loan can help you do just that. But a refinance doesn’t always save you money, and if you apply for an auto refinance loan, you want to make sure you get the best possible terms.

Our auto loan refinance calculator allows you to input just a few numbers and quickly calculate how much you could save.

What Is Auto Loan Refinancing?

Auto loan refinancing means replacing your current auto loan with a new one, typically with the aim of reducing your interest rate, shortening your loan term, or reducing your monthly payments.

A refinance gives you the chance to compare your existing loan with current auto loan rates and terms and negotiate a new deal. If you’re approved for a refinanced loan, your new lender will pay off your current loan and you’ll start making payments on the new one.

Real-World Refinance Example

You can put your real info into our refinance auto loan calculator and see if you can benefit from applying for a refinance.

Here’s an example of how it works.

Say you bought a new 2022 Subaru Outback for $32,000. You put $3,000 down and financed the remaining $29,000 with a 7.2% annual percentage rate (APR) over a 60-month term.

Your monthly payments are about $578 and you’ve been making payments for two years. Your remaining loan balance is $17,300 and your car is now worth about $25,000. Your credit score has improved from 670 to 750 over this period.

Can you save money with a refinance? Let’s take a look.

Say you can get a new interest rate of 3.9% APR, so you refinance with a new loan amount of $17,300 and a 36-month term. Your monthly payments fall from $578 to $510, and you save between $1,500 and $2,000 in interest. You can also pay off your loan earlier than you would have making payments on your original loan.

Steps To Refinance an Auto Loan

If you’re looking to refinance a car loan, you need to understand how the process works so you can get the best possible terms.

Here’s an overview of key auto loan refinancing steps.

1. Evaluate Your Current Loan

Review the details of your current car loan carefully. Important considerations include:

• Interest rate
• Outstanding balance
• Monthly payment minimum
• Loan term

2. Check Your Credit

Your credit score is one of the first things lenders look at when determining auto loan and credit card APR. It’s a good idea to pay off existing debt to improve your credit score before you begin the auto refinancing process.

3. Use Our Calculator To Estimate Savings

Input your current loan information into an auto refinance calculator. This tool can assist you by calculating alternative loan options and estimating your potential savings.

4. Gather Required Documentation

Collect copies of necessary documents, including:

• Car registration
• Proof of insurance (digital insurance card, policy document, etc.)
• Proof of income (pay stubs, bank statements, etc.)
• Personal identification
• Proof of residence (utility bill, shipping label, etc.)

5. Shop and Compare Lenders

Reaching out to one lender and calling it a day is one of the biggest mistakes you can make. Information is power. Always shop around for different lenders and do an auto loan refinance calculator comparison of the rates before making a final decision.

6. Submit Your Refinance Application

Once you’ve chosen a lender and a rate you’re happy with, it’s time to submit your application. Lenders may have different application requirements and processes, so just follow their instructions and provide the information they need.

7. Finalize New Loan Terms

So your application has been accepted — congratulations! Your lender should send you a loan document with the information you need. Review the terms of your new loan and sign the document to make it official.

How Our Auto Loan Refinance Calculator Works

An auto loan refinance calculator works similarly to our other online calculators, including our home loan early payoff calculator and our Chase points travel calculator. You can use it to get a comparison between your current loan and a potential refinance loan.

To decide whether to refinance your auto loan with the calculator, you just need to input a few key pieces of info:

1. Current monthly payments: The amount you currently pay toward principal and interest each month
2. Loan amount: Your remaining loan balance (which will be the new loan amount on your refinanced loan)
3. APR: The interest rate on your current loan, which can be compared to current rates
4. Loan term: The amount of time it will take you to pay off your loan

Let the calculator do the rest and see how much you can save.

Auto Loan Refinance Calculator: Try It Now

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How Refinancing Affects Your Financial Health: When To Consider Auto Loan Refinancing

Refinancing isn’t always the right step. It depends on your financial goals, current expenses, and available rates and loan terms. For example, if interest rates have gone down, your credit score has improved, or you’ve increased your monthly income, refinancing will likely reap benefits such as:

• Lower total interest paid
• Lower monthly payments
• Shorter term
• Improved credit score (if you pay on time)

Requirements To Refinance Your Auto Loan

One of the best reasons to refinance a car loan is because you can get a better rate with an improved credit score. Most lenders expect to see a score of at least 600-650, but 700+ gets you access to the best rates. A good auto loan refinance payment calculator can help you figure out how much you can save.

Your existing loan also needs to be eligible. If you have less than $5,000 left on your loan, lenders may not agree to refinance. They’ll also check your payment history to make sure you haven’t missed any payments.

You typically need a loan-to-equity (LTV) ratio of 90% or greater, and some lenders have mileage and vehicle-age requirements.

Money Atlas: Unlock the Best Deal in Seconds

Depending on your situation, refinancing your car loan can lower your debt burden and improve your overall financial health. With an auto loan refinance payment calculator, you can walk into negotiations armed with the knowledge you need to make the right choice.

At MoneyAtlas, financial education is our mission. We’re dedicated to providing loan comparisons, informative articles, and helpful tools. In addition to our car loan calculator, we also have a high-yield savings account calculator.

Try our car refinance calculator and explore the best auto loans today!