Auto Loan Refinancing
Lenders May 2025

Auto loan rate comparison made simple

Looking to reduce your monthly payment or get a better rate on your auto loan? RefiMeNow offers a comparison of the lenders in the RefiJet marketplace. These lenders represent the best customer satisfaction scores, approval rates, average monthly savings, and ease of application process.

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What is auto loan refinancing?

Auto loan refinancing is the process of replacing yourexisting auto loan with a new one, typically to achieve better terms. This caninvolve obtaining a new loan with a lower interest rate, lower monthlypayments, or a different loan term, and using it to pay off the remainingbalance of your current auto loan. The goal is to reduce overall costs orimprove payment flexibility.

How to refinance an auto loan?

Refinancing an auto loan involves several steps:    

  1. Assess Your Current Loan: Review your existing auto loan terms, including interest rate, remaining balance, and payoff amount.
  2. Check Your Credit Score: A higher credit score can help you qualify for better loan terms.
  3. Research Lenders:  Compare offers from banks, credit unions, and online lenders to find the best interest rates and terms.
  4. Gather Documents: Prepare necessary documents such as proof of income, proof of residence, vehicle information, and current loan details.
  5. Apply for Refinancing: Submit applications to selected lenders, either online or in person.
  6. Compare Offers: Review the loan offers carefully, considering interest rates, loan term, monthly payments, and any fees.
  7. Close the Loan: Choose the best offer, finalize the paperwork, and sign the new loan agreement.
  8. Pay Off Old Loan: The new lender will pay off your existing loan, and you start making payments on the new loan.
  9. Update Auto Title: Ensure the title reflects the new lender if required.

What to expect when applying to refinance?

The process of applying for an auto refinance typically varies by lender. The process may be completely digital, it may be mostly online with some mailed documents to sign or require a fully paper application.

Still, the documentation you will need to complete your refinance application is typically the same across lenders. Lenders will typically want to see:

  • Proof of insurance
  • Pay stubs or verification of income
  • Picture of the odometer
  • Tax returns, if you are self-employed
  • Information about other aspects of your financial situation, depending on your specific situation

In addition, almost every mortgage lender will want an appraisal of your property. However, during the COVID-19 pandemic, you may be able to skip the appraisal process or complete it via a virtual tour if your home has been appraised in the past five years.