Car Loan Refinance
Are you looking to get a better deal on your current car loan? Compare competitive refinance offers with Savvy.
Refinance your car loan with Savvy
Switch your car loan and save with Savvy
Whether you’re looking to save money on your car loan, adjust your loan term or to add further features to your agreement, it’s important to know that car loan refinancing may be a very real option for you. Wherever you are in Australia, Savvy can help you secure a competitive car loan refinance deal.
A trusted brand
With over 40 trusted and industry-leading car lenders counted among our panel, our experienced consultants can help you navigate the refinancing process from application to settlement, which all takes place online. With our state-of-the-art car loan matching service, we can help you find your ideal lender and secure the best rate for your profile. Get started with a free, no-obligation quote today.
The features and benefits of refinancing your car loan with Savvy
When you apply through Savvy, we can help you find a highly competitive interest rate for your refinanced car loan deal by scouring our wide range of reputable lending partners.
Whether you’re looking to shorten your loan down to one year, increase it up to a further seven or keep it the same, you can choose from a range of flexible loan terms for your refinanced loan.
We’re partnered with lenders who don’t have a set maximum for their car loans, meaning your loan can range from as little as $5,000 up to well over $100,000 (depending on your car’s value and your borrowing power).
Whether you’ve paid a deposit already or not, there’s no need for you to put forward a lump sum as part of your refinance agreement, as we can help you get approved for 100% finance.
We can draw on our specialist car finance partners to help you get approved for a car loan refinance, whether your vehicle is still new or as old as 20 years at the time you apply (or sometimes older).
By applying through Savvy, we can help you get pre-approval as soon as the same day you submit your quote and initial application, helping you understand your budget and shop around sooner.
There’s no need for you to visit a broker or print off any documents at any stage during the online process, as we help keep it as simple and convenient as possible for those on the go or at home.
While considering your application, our consultants will conduct a soft credit check, which allows us to consider your application and profile without impacting your score.
Why refinance your car with Savvy?
Car loan refinancing explained
What is car loan refinancing?
Car loan refinancing is the process of switching your current car loan to another, which can either be a different or updated product with the same lender or a fresh loan with a new lender. Essentially, this involves taking out a new car loan to pay out your old one and continuing your repayments on a different (typically more favourable) set of terms.
For this reason, refinancing may be treated as a new application. For instance, if you originally took out a $50,000, five-year car loan and are looking to refinance it after two years with $20,000 paid off, you’ll effectively be applying for a three-year, $30,000 loan.
In terms of how much this might cost, it’ll depend on whether you have any early repayment fees included in your current car loan contract, as you’ll be breaking your agreement ahead of schedule. If there are sizeable fees for early repayment, it’s important to consider whether the benefits of refinancing outweigh the drawbacks; namely, whether your potential savings are greater or less than the fees you’re liable to pay.
Before you sign off on any of your contracts, your Savvy consultant will help advise you as to what the potential financial benefits may be of refinancing. It’s important to not find yourself out of pocket if you decide to switch to a cheaper or more manageable car loan.
When might I look to refinance my car loan?
There are many reasons why someone might look to refinance their car loan and access a new deal. Some of the main reasons why you might look to do so include:
- To lock in a better interest rate: if the market has taken a turn towards lower interest rates or your financial position (such as your credit score) improves over the course of your car loan, you may be eligible for a lower interest rate. This can help you save over the remainder of your car loan.
- To reduce your fees: some lenders may offer lower fees than what you’re currently paying, so you may look to switch to move away from having to fork out in this area.
- To lengthen or shorten your loan term: because your life circumstances may have changed since you took out your car loan, some people opt to change their loan term. Those who have more disposable income available may shorten the term to help them save on interest, while those who may have experienced more of a squeeze may have the option to stretch their loan back out to reduce the cost of their repayments (which increases your overall loan cost).
- To remove or add a co-borrower or guarantor: if you signed up for your loan initially with another borrower on the contract or a guarantor, the only real way to remove them is to take out a new loan with fresh terms.
- To add a residual payment: some lenders will give you the option to add a residual, or balloon, payment when taking out your loan. This is a lump sum to be paid at the conclusion of your agreement and adding one can reduce the cost of your ongoing repayments (though they generally increase the interest you pay overall).
- To access new features: you may simply wish to refinance your loan so you can gain access to new and improved features which aren’t included in your current deal. For instance, if your current car loan doesn’t come with free additional repayments, you may wish to switch to one which does.
The car loan refinancing process explained
Submit your online application to Savvy
First and foremost, tell us about yourself and the car loan you’re after. This will include information about your personal financial circumstances (such as how much you’re earning and your current employment situation). You can also tell us about your car, as this will help shape the terms of the car loan you’re approved for. With this information, we can narrow down your options from our panel to help determine which are the most suitable for your needs.
The pros and cons of refinancing
Save money on your car loan
By refinancing your car loan, you can gain access to more affordable rates and fees, as well as potentially take advantage of a shorter term, to save more than you would’ve otherwise.
Add greater flexibility
Car loan refinancing can add greater flexibility to your car loan, allowing you to modify your term, features and whether you have a residual should you wish to do so down the track.
Access new and improved features
There may be new features which weren’t available on your original car loan which you may be able to take advantage of now under a fresh agreement.
Simple online process with Savvy
You don’t have to take hours out of your day to visit a lender or broker; simply fill out our easy online forms and let your consultant handle the heavy lifting for you.
Fees may outweigh the benefits
It’s important to be mindful of whether there are any early exit fees included in your current car loan which may negate the benefits of refinancing in the first place.
Extended terms and residuals will cost more
Though extending your car loan term and adding a residual to your agreement can both help you reduce the cost of your instalments (which you may look to do), they’ll both increase the interest you pay overall.