How soon can you refinance a car loan?

Technically, you can refinance immediately after purchasing. However, most lenders recommend waiting 60 to 90 days for the vehicle title transfer to clear and the previous loan to register on your credit reports.

Does refinancing a car loan cost money?

Unlike home mortgages, auto refinancing typically has very low fees. Some states charge title transfer or registration fees (usually $15 to $100), but many lenders charge zero transaction fees to open the new loan.

Auto Loan Refinance Calculator — Lower Your Monthly Payment (2026)

1. Your current loan

Payoff balance ($)

Current APR (%)

Months remaining

2. Refinance offer

New APR (%)

New term (months)

Fees ($)Title, lien, origination, prepayment penalty

Pay fees

Result

	Keep current	Refinance

–monthly payment change

–total saved (after fees)

Estimates assume fixed rates and equal monthly payments. Your lender’s figures may differ slightly because of rounding and the exact payoff date.

How to use the calculator

Payoff balance: ask your current lender for a payoff quote, or check your online account. It is slightly higher than the “principal balance” because it includes interest up to the payoff date.
Current APR and months remaining: both are on your statement or loan contract.
New APR and term: enter the offer from a bank, credit union or online lender. Get pre-qualified quotes from several lenders; many use a soft credit check for that step.
Fees: add title or lien transfer fees, any origination fee and any prepayment penalty on your current loan.

Worked example

You owe $25,000 with 48 months left at 9.5% APR. Your payment is about $628 and you still owe about $5,148 in interest. Refinancing to 5.5% for the same 48 months gives a payment of about $581 (−$47 a month) and about $2,908 of interest. After a $100 fee you save roughly $2,140, and the fee is recovered in about 3 months.

When refinancing usually makes sense

Your credit score has improved noticeably since you took out the loan.
You financed through a dealer and accepted a high rate.
Market rates have fallen since you bought the car.
You need a lower monthly payment and accept that a longer term costs more in total.

When to think twice

Few months left: most of the interest has already been paid, so the saving is small.
Negative equity: if the car is worth less than you owe, many lenders will not refinance or will charge a higher rate.
Prepayment penalty: check your contract and add any penalty to the fees.
Longer term: stretching the loan lowers the payment but often increases the total cost – the calculator shows both.
Old or high-mileage car: some lenders have limits on vehicle age and mileage.

Frequently asked questions

Does refinancing hurt my credit score?

A loan application causes a hard inquiry, which usually lowers a score by a few points for a short time. FICO counts several auto-loan inquiries made within a short shopping window (14 or 45 days, depending on the scoring version) as one, so compare offers within a couple of weeks.

How soon can I refinance after buying a car?

As soon as the title and lien are registered with your current lender, which often takes one to three months. Some lenders also want to see a few on-time payments first.

What documents will I need?

Usually your driver’s licence, proof of income, proof of insurance, the vehicle’s VIN and mileage, and a payoff letter from your current lender.

This calculator is for information only and is not financial advice. Compare the full terms of any loan offer before you sign. Related: Loan & EMI Calculator · Compound Interest Calculator