Have you had a car loan for at least 12 months? You may be in the ideal position to refinance your loan - depending on your personal and financial circumstances. Check out our top five tips on refinancing for a financial benefit.Read more
When your financial circumstances change, your car loan should change too. Refinancing can save you money, provide more flexible loan features or even just put you with a better loan provider. We offer:
Car refinancing is when you replace your current car loan with a new one, often with a different lender. The idea is to get a loan that has better terms for you—like a lower interest rate or different loan duration—which can make your repayments smaller or the total time to pay off your car shorter. It can be a smart move if your financial situation has improved since you got your original loan, or if interest rates have gone down.
One of the main advantages of car refinancing is the potential to save money over time. If you secure a lower interest rate, your monthly payments could be reduced, making your budget a bit more comfortable. Additionally, refinancing could help you pay off your car loan quicker if you choose a loan with a shorter term. However, there can be downsides. Sometimes refinancing might come with fees or penalties for ending your original loan early. And if you extend the loan term to get lower monthly payments, you might end up paying more in total interest over the life of the loan. It’s important to weigh up these pros and cons, and consider what’s most important for your financial health before making a decision.
A specialist broker, like Rapid Finance, could assist you to weigh up the pros and cons and find you a better deal that suits your current finances better.
Let’s work with you to get a better deal on your car finance.
Our specialist refinance consultants will shop around to find you a better car loan. If you’re looking for greater flexibility, reduced repayments or a better rate, we will find a refinance solution suitable for you.
View our full range of car loan options.
Please note: This is an estimate provided for illustrative purposes only, and is based on the accuracy of information provided. It does not constitute a quote. Additional fees and charges may apply dependent on your individual circumstances. Fees such as early repayment costs and establishment fees are not accounted for in the examples of weekly repayments. Interest rates may be subject to change throughout the term of the loan.
Car refinancing involves taking out a new loan to pay off your existing car loan. Essentially, you're swapping your current loan for a new one, usually with different terms that could offer you a better interest rate or a different loan period. To refinance, you’ll apply for a new loan, get approval, and then this new loan will be used to clear the old debt, leaving you with repayments potentially more suited to your current financial situation.
Yes, it’s possible to refinance your car loan even if you have bad credit. There are lenders who specialise in loans for those with less than perfect credit scores. However, the terms might be different from standard loans, and interest rates may be higher. It's vital to ensure the refinancing still benefits you financially, even with a higher rate. Also see our bad credit car loans page.
Refinancing can either lower your monthly car payments if you get a lower interest rate or extend the loan term. Conversely, if you opt for a shorter loan term to pay off your car sooner, your monthly payments might increase, but you'll save on total interest in the long run.
The time frame can vary, but typically, once you've submitted all necessary documents, a decision can be made within 24 to 48 hours. After approval, the process of paying off your old loan and beginning the new one may take a few more days to complete.
Refinancing can affect your credit score initially, as it involves a hard inquiry into your credit report. Additionally, paying off your old loan and taking on a new one can also affect your score. However, if refinancing means you can manage your payments better, it may positively impact your credit score over time.
Some lenders offer cash-out refinance options, allowing you to borrow more than you owe on the car and use the extra cash for other expenses. However, this depends on the amount of equity you have in your vehicle and may increase your overall financial risk.
Circumstances change. Perhaps you had bad credit when you took out your car loan. Whereas now you've been consistently repaying your loan, with no issues, for 12 months.
If you’re in a better financial position now, compared to when you took out your loan, you may be eligible for a new loan that features a lower interest rate. By switching loan or lender, you may be able to save a significant amount on your monthly repayments and on your overall loan costs.
Depending on your situation, car loan refinancing may offer you a range of benefits. For example, if you switch from a variable rate car loan to a fixed rate loan, you can enjoy the peace-of-mind of knowing that your new interest rate will not change.
Or, if you move to a loan with more flexible repayments options, you may be able to repay your loan faster, and get out of debt quicker. Speak to a Rapid Finance specialist to find out exactly which benefits will apply to you and your situation.
At Rapid Finance, our specialists have access to a wide range of car loan options. Your dedicated specialist will assess your application, compare a variety of loans and seek out a solution that matches your situation.
Your specialist will be your personal guide through the refinancing process. They can assist you with everything from reviewing your credit history, to collecting your documentation. Chat to someone today on 1300 467 274.
If you've been successfully repaying a high interest rate car loan for 12 months, then now is the time to consider refinancing. Many financiers will look favourably upon a year’s worth of good payment history. So you may have considerably more options now, compared to when you took out your car loan.
12 months into your original loan is the ideal time to refinance – provided you've successfully repaid your loan obligations over the past year. The older your car, the less it is worth. The lesser the car’s worth, the lower its value to the lender. Therefore, the older the car, the more difficult your car loan will be to refinance.
Yes, there are fees associated with refinancing. These may include early exit or break fees, as well as relevant application fees. While it is important to consider all fees when refinancing, it’s worth looking at your costs in the long term. Additional fees now, may lead to considerable savings on the overall price of your loan.
For the most accurate information regarding refinancing costs call us on 1300 467 274
We've been able to help many people who were either self-employed or receiving Centrelink benefits. Whether you will be eligible to refinance, will depend on your individual circumstances, and your credit history. To discuss your situation and refinancing options, call one of our friendly staff on 1300 467 274
Every application will be different. Exactly how long your approval will take, will depend on your individual situation. You can quicken the process by having all relevant documentation ready-to-go before you apply - this includes ensuring information is complete and up to date.
At Rapid Finance, we have more than two decade's experience specialising in car loans and refinancing. When you apply with us, we assign you a dedicated loan specialist who can guide you through the entire refinancing process - from start to finish.
Your loan specialist will help you with everything from reviewing your credit history, to collecting your documentation. They'll make your application and assessment fast and easy.
To get started, complete the short form at the top of this page - it takes just 2 minutes to complete.
To get started, submit an application on our website or over the phone. One of our team members will be in touch shortly to discuss your refinancing options.
If your financial history is a little complex, that’s okay. Our finance specialists are experts in negotiating deals with lenders. In some cases, they're also able to correct errors on your credit history – free of charge.
Have more questions about your car refinance options? Call the team on 1300 467 274 and we'll be happy to help.