Car loan refinancing

If you're looking to save on your car loan, refinancing could be a beneficial option. Refinancing simply means taking out a new loan to replace your current loan.

Potential reasons to refinance your car loan

Lower your repayments

Many car loans involve a fixed rate, and if interest rates have fallen since you first took out your car loan, refinancing can provide a valuable opportunity to secure a lower rate. Along with savings on overall interest charges, this can also lower your monthly repayments. Or you may choose to extend the loan term as a means of lowering your regular repayments to help with personal cash flow.

Save on fees

Some car loans charge a monthly fee – a cost that can significantly add up over the course of your loan. Refinancing can let you save money with a loan that doesn’t impose unwanted fees.

More flexible loan features

Refinancing a car loan can also mean accessing useful loan features. Car loans are becoming more flexible all the time. Many allow additional repayments and some even offer redraw – handy features that can help you pay off the loan sooner or simply make it easier to live with.

Access equity

Your car may be worth more than the balance of your loan, meaning you have some equity in the vehicle. Refinancing your loan can offer a way to tap into this equity, potentially providing funds for other purposes, like some minor home improvements.

Weigh up the costs

Refinancing a car loan can involve costs. Your current car loan may charge an early payout fee, and the new loan may charges upfront application fees. This makes it important to weigh up the costs versus the benefits and savings of refinancing your loan. Your Mortgage Choice broker can help you crunch the numbers to see if refinancing your car loan will put you in front financially - and help you select a competitively priced loan from our extensive panel of lenders.

See how our customers have saved money by refinancing their car loans

Find out more

We compare car loans from over 25 lenders

Talk to Mortgage Choice today

We can help you find out if you could save by refinancing your car loan.

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