Can Auto Refinancing Help You Save BIG?

Current low interest rates have made for an auto refinance boom. Should you jump in?


This page:

  • Helps you decide if you'll benefit from auto refinancing

  • Describes how online automobile refinancing works

  • Recommends two great online sources for auto refinance loans

Auto refinancing as low as 7.20%

Capital One Auto Finance offers the lowest auto loan refinancing rates in the country, for people with all types of credit ratings. You can cut your overall interest bill, and your monthly payments.

Apply with Capital One for a totally risk-free loan quote, and see how much you could save.

Click here for your quote

Why refinance auto loans?

Why indeed. Auto refinancing is a fairly new thing, but don't dismiss it as a passing trend. In today's world of expensive cars, low interest rates, and instant online loans, the auto refinance loan can save a savvy car owner plenty.

If you still owe over a third of your vehicle's original price (but have had the loan for at least a year), you may be able to save $1000 or more with an auto refinance loan. (And, to make it even better, it's a fast and painless, risk-free process.)

Another group of car owners likely to benefit from an auto refinance are drivers with a poor credit history who originally financed at a subprime rate. (Though this type of auto refinance may become less profitable if the original loan carries a stiff prepayment penalty).

Basically, if you're carrying both a substantial balance and a higher-than-current interest rate, an auto refinance is going to pay off.

How an automobile refinance loan works

With the right lender, auto refinancing is a very simple and inexpensive process. It's really nothing more than substituting your original auto loan for a new one with a lower rate.

A good lender won't charge any application or balance transfer fees, and the only cost to you will be a one time lien transfer fee required by the state. (These range from $5 to $65 depending on state law.)

And, of course, since an refinancing an auto loan is really nothing more than paying off the old loan with the proceeds of a new one, you can choose any loan term and payment plan.

But do keep in mind that the best way to save money is to make the new loan's term equal to or shorter than the old. (After all, the plan is to cut interest costs, and a lower rate for a shorter term is the best way to do it.)

Auto refinancing online

Getting your auto refinance loan online is a great means to making a fast and painless process even more so. Apply in seconds, get approval within fifteen minutes, and transfer the lien whenever you like. What could be simpler?

We've looked at a lot of lenders, and there are two online auto refinancing companies we really like.

Capital One is one. Their approval process is almost instantaneous, and their rates are the lowest around. They even provide bad credit auto refinance loans.

And they offer loan terms starting at 12 months (no more payments within the year!)

Apply for risk-free rate quote now.


RoadLoans is another great company. Their rates are also low and they have no loan minimum. (But keep in mind that a very small auto refinance loan won't save you much.).

However, they do have some vehicle restrictions (cars must be fairly new with low mileage).

Apply with RoadLoans now.

Learn how to save even more:

Sign up fo our free auto financing email course. You'll learn the step-by-step process that will help you save hundreds, even thousands of dollars on financing costs. And it's free!

Sing up here: