How to refinance an auto loan
This is a practical checklist for evaluating refinancing. It focuses on numbers and tradeoffs, not on “best rates” language.
Step 1: Anchor the current loan
- APR
- Monthly payment
- Months remaining
- Payoff amount (if you can get it)
Step 2: Compare offers as scenarios
For each scenario, track APR, term, and fees. A lower payment can come from a longer term, which may increase total cost.
Step 3: Decide using tradeoffs
- If payment pressure is the problem, check whether the payment reduction is worth the extra total cost.
- If total cost is the problem, prioritize APR drop and shorter terms (if affordable).
- If fees are high, focus on break-even timing.