Should I Refinance My Auto Loan?

Refinancing saves money when the math works

If your credit has improved since you got your auto loan, or if interest rates have dropped, refinancing could save you hundreds to thousands. But not always — here's how to know.

When refinancing makes sense

• Your credit score has improved by 30+ points since the original loan
• You're paying more than 2% above the current average for your credit tier
• You got dealer financing and never compared rates
• You have at least 12 months remaining on the loan
• Your car's value is more than the loan balance (not underwater)

When it doesn't

• Your loan is almost paid off (less than 12 months remaining)
• The rate difference is less than 1.5% (savings may not justify the effort)
• You're underwater on the car
• The new loan has fees that eat the rate savings

The break-even calculation

Use our Refinance Break-Even Calculator to see exactly when you start saving. The key number: if you break even within the first few months, it's a no-brainer. If break-even is 12+ months out, think carefully about how long you'll keep the car.

Where to refinance

1. Your credit union — best rates, member benefits
2. Online auto refi lenders — competitive for good credit, fast process
3. Your current lender — ask if they'll match a better offer (saves paperwork)