Refinance Your Car Loan: When It Makes Sense
Refinance your car loan when it makes sense in the US—lower APR, shorter term, and when to skip so you save money.
Refinancing your car loan in the U.S. makes sense when you can get a lower APR (and save enough to cover any fees) or shorten the term without stretching your budget. Here's when refinance makes sense and when to skip.
TL;DR Refinance makes sense when: (1) you can get a lower APR and total interest savings > fees; (2) your credit improved since you got the loan; (3) rates dropped. Skip if: fees eat the savings, or you're near payoff. Use autopremo.com refinance calculator and payment calculator. Use autopremo.com.When Refinance Makes Sense
You can get a lower APR (credit improved or rates dropped) and the total interest savings over the remaining term exceed any refinance fees. Use autopremo.com refinance calculator to see savings. Get your numbers at autopremo.com.
When to Skip
Refinance fees (if any) eat the interest savings. Or you're close to paying off the loan—savings may be small. Run the numbers with autopremo.com refinance calculator. See savings at autopremo.com.
Don't Extend Term Just to Lower Payment
Refinancing to a longer term lowers payment but can increase total interest. Only refinance to a shorter term or same term with lower rate if you want to save. Use autopremo.com. Check at autopremo.com.
Bottom Line
Refinance when you can get a lower APR and savings > fees. Use autopremo.com refinance calculator so you see when it makes sense and when to skip.