Car Loan Refinance

Are you looking to get a better deal on your current car loan? Compare competitive refinance offers with Savvy.

No obligation. It won't affect your credit score.
Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on June 30th, 2023       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

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.

Car Loans - Compare Car Loan Interest Rates, Offers & Apply Online

The features and benefits of refinancing your car loan with Savvy

Secure a competitive interest rate

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.

Choose from loan terms of one to seven years

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.

Get approved for $5,000 and up

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).

No need for a deposit

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.

Available for new or used vehicles

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).

Fast pre-approvals

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.

Online and paperless from start to finish

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.

No effect on your credit score

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

The pros and cons of refinancing

PROS

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.

CONS

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.

Common car loan refinancing questions

How soon after I take out my car loan can I refinance?

In theory, you can refinance your car loan shortly after you take it out. However, attempting to do so will mean you have multiple enquiries on your credit file in quick succession, which may make it more difficult to get approved. When refinancing, it’s worth determining when the most beneficial time to switch your loan may be to maximise your savings or increase your level of comfort in managing your repayments. For instance, refinancing in the last six to 12 months may not be worth the effort if you have to pay exit fees and only achieve a small saving.

Can I switch from a fixed interest rate to a variable rate car loan?

Yes – by applying with Savvy, we can help you switch your car loan from one with a fixed rate to a new one with a variable rate. Speak with your consultant about your options if you’re looking for a variable rate car loan.

Will I be able to refinance my car loan if I have bad credit?

We may be able to help you if you have a bad credit score and are looking to refinance your loan. We’re partnered with lenders who specialise in working with applicants who have struggled with their credit in the past, so have a chat with us about your options today.

How old can my car be when refinancing my loan?

We’re partnered with lenders who can help finance cars as old as 20, while others may not impose an age limit at all (provided your car meets their qualification criteria).

Can I trade in my current car with finance owing?

Depending on the terms of your agreement with your lender, you may be able to trade in your vehicle with finance owing on it. For instance, you may have the option to use the funds from your vehicle sale to pay off the remainder of your loan. If you’re trading your car in for another one, you may be able to refinance to switch your loan’s security to your new vehicle instead. You can speak with your Savvy consultant about what your options may be today.

What happens if I have negative equity on a car loan when I go to refinance it?

Negative equity on a car loan is when the amount you owe your lender is more than the value of your vehicle. In this situation, upon refinancing your car loan, you may find the amount you’re approved for is less than your loan’s remaining balance, so you may have to pay the difference out of pocket.

How much would a car refinance save me?

The amount you can save will depend on a range of factors, such as the size of your loan, difference in interest rates, length of your term and more. You can use tools such as a car loan repayment calculator to help you work out how much you may save in your particular instance. Your Savvy consultant will also help you work out what your savings may be when you apply with us.

Helpful guides on car loans

Car loans for uber drivers

Car loans for Uber drivers – a primer

What cars does Uber allows you to drive? Uber itself places restrictions on what car drivers may use. Drivers must also be over the age of 21, have a spotless...