Auto Loan Refinancing Savings Calculator
The payoff amount from your lender
Title transfer, registration, lender fees
Fees are
Refinancing
Saves $1,187
- Payment now
- $552.71
- New payment
- $521.73
- Interest left now
- $4,530
- Interest on new loan
- $3,043
$30.98 a month lower. The $300 of fees are recovered after 10 months.
Totals compare all remaining payments (plus fees paid up front) on each loan. A longer term lowers the payment but often raises total interest, and it can leave you owing more than the car is worth. Check for prepayment penalties on the current loan.
Find out whether refinancing a car loan saves money: the new monthly payment, the interest left on each loan, the total saving after fees, and how many months it takes to recover the fees.
Formula
Worked Example
Cutting the rate by 3 points over the same 48 months lowers the payment by $30.98 and the remaining interest by $1,487; after the $300 of fees the refinance saves $1,187.
Frequently Asked Questions
When does refinancing a car loan make sense?
When you can get a meaningfully lower rate, for example because your credit score has improved or rates have fallen since you bought the car, and the loan has enough time left for the saving to outweigh the fees. Check the current loan for a prepayment penalty first.
Does a longer refinance term save money?
It lowers the monthly payment but often raises the total interest, even at a lower rate, and it can leave you owing more than the car is worth as it depreciates. Compare the total cost, not just the payment.
Will refinancing hurt my credit?
Applying causes a hard inquiry, which usually lowers a score by a few points for a short time. Rate shopping within about two weeks is generally treated as a single inquiry by credit scoring models.