Auto Loan Refinance Calculator

Refinancing pays off when current rates are at least 1%-1.5% below your existing APR and you have at least 24 months remaining on the loan. Credit score improvements of 50+ points since origination are a strong trigger. The break-even is usually under 6 months because auto refinance fees are minimal ($0-$500) compared to mortgage refinance.

On a $25,000 balance with 36 months remaining, dropping from 9% to 6% saves about $1,200 in total interest and $30/month in payment. Bigger savings come from larger balances or steeper rate cuts. Use this calculator to see your specific number - be sure to compare TOTAL interest (over the new term), not just monthly payment, since extending term can increase total interest even at a lower rate.

Mildly and temporarily. The hard inquiry from each lender (typically 1-3 inquiries while shopping) costs 5-10 points; multiple inquiries within 14-45 days for the same loan type usually count as one (FICO/VantageScore). Opening the new loan briefly lowers average account age. Within 3-6 months your score recovers, especially if you maintain on-time payments.

Most auto refinance loans have NO origination fees or prepayment penalties - unlike mortgages. The main costs are state title/registration re-titling fees ($15-$75 depending on state) and any lien recording fees. Be wary of "add-on" GAP insurance or extended warranty packages from refinance lenders - these are optional and usually overpriced.