Auto loan refinancing replaces your current car loan with a new one, usually at a lower interest rate or with a monthly payment that better fits your budget.

That's really all it is. Same car, new loan.

The new loan pays off the old one, and from then on you make payments on the new loan instead, ideally at a lower rate. You don’t need to visit a dealership or trade anything in. The car stays in your driveway the whole time.

Refinancing a car loan tends to make sense when your credit score has improved, interest rates have dropped, your payment no longer fits your budget or your original loan came with a dealership markup. 

Think back to when you first took out your loan. If you financed at a dealership, there’s a decent chance the rate was marked up. If your credit score was lower than it is now, you were quoted a rate to match. And if rates across the market have simply come down since you signed, you could still be paying the rate you qualified for months or even years ago.

Any one of those is worth a closer look. If more than one sounds familiar, refinancing may be worth checking out.

A lower APR on your auto loan reduces both your monthly payment and the total interest you pay over the remaining term.

Here’s what that looks like in real life. Say you owe $20,000 on your car and you have four years of payments left. Even lowering your rate by a small amount can make a noticeable difference over time, and the savings stack every month after that for the life of the loan. 

That’s where the savings really add up. A $40 or $50 drop in a monthly car payment doesn’t sound like much, but over four years, that’s more than $2,000 that stays with you instead of going to interest.

Everyone’s numbers are different, which is why it’s worth checking your own. Plug your balance, rate and remaining term into our auto loan calculator and see what a new rate would do for you.

Refinancing often makes the biggest difference if you can lower your rate or get a payment that fits your budget, and it may not be worth it if you’re near the end of your loan or would pay more interest by extending the term.

The best candidates are drivers with time left on their loan and room for the rate to drop. If you’re in the first half of your loan and your credit has improved since you signed, refinancing can have a strong impact on your monthly car payment. 

It’s worth a closer look before jumping in if you’re nearly done paying off your car. With only a few payments left, there’s less interest remaining to save. And if refinancing stretched your loan out over more years, a lower payment can cost you more in total interest. 

The good news is you can check your estimated rate without affecting your credit score. Keep reading to see how.

To refinance your car loan with Truliant, get pre-qualified without a credit score impact, gather your documents, apply online and close on your new loan. 

The whole thing is simpler than most people expect. 

Start with pre-qualification. Answer a few questions and see the rate you may be eligible for in minutes, without a hit to your credit score. This is the “just looking” stage, and it’s commitment-free. 

Gather your documents. You’ll want your current loan payoff information, proof of income and your vehicle details. Having this ready makes the application go quickly.

Apply online. The application prepopulates after you enter your mobile number, so most of the typing is done for you. 

Close on your new loan. Once approved, your new loan pays off the old one. Then you just make your new, lower payment going forward. 

That’s it. No dealership visits. No trade-ins. No spending your Saturday filling out paperwork. 

Truliant is a popular choice for auto refinancing because of the member-owned rates, no down payment required and real people to talk to at local branches.

Plenty of lenders can refinance a loan. Not all of them give you someone to call if you have questions.

As a member-owned credit union, Truliant returns value to members in the form of competitive rates rather than shareholder profits. You can refinance with no down payment and borrow up to 100% of your car’s value. And if you’d rather talk it through than click through, there’s a branch with a person who will talk with you and help you finish the application. 

Refinancing is a small move, but the kind that pays you back every month, and many members say the best part isn’t the number. It’s knowing they’re no longer paying more than they have to.