Car loan refinance
Are you looking to get a better deal on your current car loan? Consider refinancing your car loan and save
Car loan refinance
Thinking of refinancing your car loan? Savvy offers a complete range of car loan refinancing options to get you a better deal
Gain better car loan rates
Did you know you can refinance your car loan? If the market has changed or your credit has improved, it makes a lot of sense to consider car loan refinancing. Unlike refinancing a home loan, you can refinance your current car loan with a variety of options.
Car loan refinancing makes sense if you once had bad credit and are now in a better credit category. Refinancing with a lower interest rate may save you thousands of dollars throughout the life of the loan.
Car loan refinancing may make you eligible for a new car if you are willing to trade in your old one. One common way of refinancing is to pay out the existing loan with a trade-in.
Trusted brand
The team at Savvy can advise you if a car loan refinance is the best option for you. In some cases, your current car loan may penalise you for exiting your car loan early. However if that’s not the case, you could be saving money not only in interest rates, but fees, charges and loading on timed repayments. A new car loan could also give you access to features your existing car loan doesn’t have.
Our financial professionals can guide you through the process and determine whether a car loan refinance is the best move. Sometimes the drawbacks outweigh the advantages in refinances, especially due to differing loan terms, exit fees or setup costs.
Calculate car loan refinance lenders and save
Thinking of buying your dream car? Savvy offers a complete range of car loan options to suit all needs. Compare and save with Savvy. Savvy has access to all major banks and lenders in the country. We hold accreditation with all the major lenders in the country and have experienced consultants to tackle any requirement.
| Lender | Product Name | Advertised Rate | Comparison Rate | Monthly Repayment |
|---|---|---|---|---|
| Savvy | Secure Car Loan | 4.99% fixed | 5.89% | $566.00 |
| Bank of Australia | Used Car Loan | 6.45% variable | 6.66% | $586.28 |
| ANZ | Online Secured Car Loan | 7.85% fixed | 8.70% | $606.14 |
| CUA | Fixed Rate Car Loan | 7.99% fixed | 8.29% | $608.15 |
| BankSA | Secured Fixed Personal Loan | 8.49% fixed | 9.39% | $615.35 |
| St George | Secured Fixed Personal Loan | 8.49% fixed | 9.39% | $615.35 |
| CBA | Secured Car Loan | 8.49% fixed | 9.54% | $615.35 |
| NAB | Variable Rate Personal Loan | 14.19% variable | 15.06% | $701.01 |
* Commercial loan with the loan amount of $40,000 is looking at a 5 year secured fixed rate of 4.99% p.a. and comparison rate of 5.89% p.a.. WARNING: all fees and charges may not be included on the example above, only the comparison rates, monthly repayment and total cost applies. Therefore, the total cost of the loan might be different. Comparison rate do not include broker fees, redraw fees, early termination fees and fee waivers. Comparison rate may change as a result of the different loan terms, fees and the loan amounts. Establishment fees and monthly fees do not apply to commercial loans, only consumer loans. However, there might be different fees apply.
The steps toward refinancing your car
A step by step guide on how to make the most of your car refinancing
Find out where you stand
Contact your current lender to see how much is owing on your loan. If you are not up to date with payments, make sure to get current as soon as possible.
Look for new car loans
Shop around for new lenders or brokers that offer refinancing. Looking for a broker can save you time and money as they can help you find car loans from more outlets, which often means a more competitive rate.
Find out the fee situation
How much will you pay in fees – either exiting your old loan or entering a new one. This forms the basis of your value calculation.
Perform a cost-benefit calculation
Using a car loan calculator, figure out if your new loan will be cheaper or result in less interest. You need to factor in the fees as well – some fees are represented as an overall comparison rate.
Make an application
Gather your documents and other application material and apply for the new car loan. Your new lender will pay out the old loan and carry on with a new loan.
Pros & Cons of refinancing your car loan
We break down the advantages and drawbacks of car loan refinancing
PROS
You could save money in repayments and interest by refinancing your car loan.
A new lender could offer you a lower interest rate than your current lender.
You may want to spread out your repayments over a longer term, reducing your repayments.
Refinancing a car loan may also give you the opportunity to remove a guarantor.
You may want to add a balloon payment to your loan to reduce regular repayments.
You can change your loan type from secured to unsecured or variable to fixed or vice versa.
CONS
Refinancing a car may be time consuming, as you’ll need to apply as you did the first time.
You may end up paying more in exit and entry fees if you refinance.
You may accumulate more interest if you extend your loan term.
Taking out a variable rate loan may make budgeting more difficult, especially if interest rates rise.
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