Want to get a better deal on your car loan? Consider refinancing.
Car loan refinancing can help save you money by giving you a lower rate, fewer fees and more flexibility.
Find out if refinancing is right for you and compare your options now.
Latitude New and Used Car Loan
Latitude New and Used Car Loan
From
6.99 %
p.a.
fixed rate
From
8.10 %
p.a.
comparison rate
- Competitive low rate
- Up to 7 years to repay
- New or used vehicles accepted
100% confidential application
Latitude New and Used Car Loan
A competitive fixed rate loan available for new and used vehicles.
- Interest rate from: 6.99% p.a.
- Comparison rate: 8.10% p.a.
- Interest rate type: Fixed
- Application fee: $295
- Minimum loan amount: $5,000
Car loans you can use to refinance
Rates last updated February 21st, 2019
How does car loan refinancing work?
Car loan refinancing is simply switching from your current loan to another loan. You should change to a loan that gives you lower rates, fewer fees or easier repayment options to help you pay off your loan sooner or at a smaller cost.
You use your new loan to pay off the existing loan and you then continue to make repayments on the new loan. If done correctly, refinancing your car loan can potentially save you hundreds, if not thousands, of dollars.
You can either look for refinancing yourself or enlist the services of a finance broker, who will work on your behalf to get the best refinancing option.
Why should I refinance?
If you're still on the fence about refinancing your car loan, here are a few benefits to consider:
- Reduce your repayments. Your new loan may offer lower rates and fees, meaning your repayments will be smaller.
- Get a different loan term. You can choose to refinance using a new loan term and give yourself longer to pay off the loan amount.
- Make your balloon payment more manageable. If you are currently paying off dealer finance, it's likely you'll have a balloon payment to cover when your loan ends. Refinancing can allow you to pay off your balloon payment over an extended period if you aren't able to cover the final lump sum.
- Change lenders. If you're unhappy with your current lender or would prefer a different one, refinancing allows you to choose a new lender.
Steps to refinance your car loan
- Check whether you will be charged a fee for closing your loan before the end of the term. If you will be, factor that in when working out if you'll save money by refinancing.
- If you want to go ahead and refinance, you then need to compare your options. Make sure you meet the eligibility criteria and are aware of all fees and charges. Once you've found the right loan for you, click "Go to Site" to apply.
- Select "refinancing" as the loan purpose.
- Submit the relevant documents and information. This will usually include information about the lender you're with and details about your car.
- Pay off your previous loan. Your new lender may do this for you or you may be required to organise this yourself.
- Close your previous loan. Once you have paid off the old loan, you should also ensure the loan account is closed.
Options to refinance a car loan in February 2019
- Beyond Bank Low Rate Car Loan "Special Offer": 5.97% p.a. comparison rate. A limited time offer – get a car loan with a 5.69% p.a. variable rate.
- RACQ New Car Loan: 6.72% p.a. comparison rate. A car loan suitable for new vehicle purchases with no monthly administration fees.
- imb New Car Loan: 6.24% p.a. comparison rate. A new car loan with no monthly service fees and no early repayment.
- bcu Car Loan: 6.82% p.a. comparison rate. A flexible car loan with redraw facility and fee-free early payout.
Main points to consider when refinancing
- Your repayments will be less. This is very important to check. Less interest does not always mean lower repayments, so remember to take into account upfront and ongoing fees as well as the loan term you're asking for and use a comparison rate calculator to determine the cheaper option.
- You won't pay more interest over the loan term. If you extend your loan term, you may end up paying more in interest over the course of the loan, despite lower repayment amounts.
- The loan has the features that you want. If you want to be able to make extra repayments, repay the loan early, use a redraw facility or an insurance product bundle, make sure the new lender offers this.
- The lender is legitimate. A number of lenders operate in the car finance space and it is your responsibility to choose one that is reputable. See how transparent the lender is with rates and fees and how easy they are to contact before deciding on a new loan.
How to compare car loans when you want to refinance
If you've decided to refinance, keep the following in mind when comparing loans:
- Interest rate. Ensure you compare the interest rate across all the car loans available to you. The lower the interest rate the better, so try and find a loan that gives you a low interest rate to assist you in saving money.
- Flexibility in repayments. Flexibility in repayments is a huge comparison point. Can you make weekly, fortnightly or monthly repayments? It’s also important to compare if the car loan allows you to make additional repayments so you can pay off your car loan quicker. If repayment flexibility is important to you, ensure the lender offers the options you need.
- Additional fees. Most refinancing loans will have fees you may be liable to pay. Understand all the fees you may have to pay both upfront and over time and look for a refinancing option with the lowest fees to help you save money over the duration of the loan term.
- Maximum loan amount. Each refinancing option will also have different maximum loan amounts that you can borrow. If you have a certain figure in mind that you need to borrow, look for a loan that will allow you to borrow this amount.
Benefits and drawbacks of refinancing
- Lower interest rate. One of the key advantages of refinancing is securing a lower interest rate. As with any loan, interest is usually what accounts for the highest costs. Keep an eye out for a car loan with a lower interest rate than what you are currently paying. Interest rates tend to fluctuate, so it’s all about selecting the right time to refinance to get the lowest interest rate.
- Lower repayments. You can lower your repayments by extending your loan term when you refinance. This is good for those who are struggling to make their regular repayments every month due to their financial situation. Adding additional years onto your car loan will lower your repayments and free up some much-needed cash.
- Get more features from your car loan. Refinancing your car loan may also mean you can benefit from additional features on your car loan that you don’t currently have. This can include the ability to make extra repayments or a redraw facility where you can redraw repayments when you need your funds the most.
- May end up paying more interest over the term of the loan. Even if you refinance with a lower interest rate, you may end up paying more in interest if you extend the loan term. You should calculate how much you will need to pay over a longer term before deciding if it's right for you.
- Exit costs and set-up costs. Switching from your current car loan may mean incurring exit costs that you must pay. You may also be liable for set-up costs with your new car loan. These are both additional costs and cons that you need to consider.
Picture: Shutterstock
I want to refinance my car.
Hello Sony,
Thank you for your comment.
Since you’re looking for refinancing options for your car, the guide above will give you ideas and tips on how to go about getting one. You may compare the car loan refinancing products above and click the Go to Site button of your preferred loan product.
Please make sure to meet all the criteria and the requirements before submitting the application. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you. We also recommend that you get in touch with the lender.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn
I have a car loan and I would like to refinance it somewhere else with a better interest rate
Hello Savvas,
Thank you for your question.
You are on the right page! :)
You may put your loan amount and the desired term on the calculator at the top of the comparison table. This will help you get the figures down for the loan you’re likely to be comfortable with in terms of repayments.
It is worth mentioning that you need to review the qualifications and the loan terms prior application.
Hope this helps.
Cheers,
Jonathan
Good Afternoon,
I am looking to refinance my Harley Davidson motorcycle. The interest rate is extremely high.
The only default I have is from over 5 years ago – no current credit cards, no credit issues.
Is there another option I have to re-finance? Payout figure is approximately $28K
Hi AJ,
Thanks for your question.
You may try contacting a lender listed on this page for your motorcycle refinancing options. Please note that your approval will be on a case-by-case basis so make sure to read the criteria and requirements before you apply.
Hope this helps.
Cheers,
May
I have an existing car loan and im wanting to borrow an extra $20000. Adding it to my loan. Is that possible? Is that refinancing?
Hi Bob,
Refinancing involves you taking out a new loan to pay out your existing loan, so borrowing an additional $20,000 on your existing loan is just “topping up” your loan. You’ll need to get in touch with your lender to find out if this is possible and what the process is to apply.
Hope this helps,
Elizabeth
Hi, I want to refinance my loan. looking for right advice.
Hi Roy,
As a financial comparison service we can’t offer you personal advice, but any of the lenders on the page above can help you with car loan refinancing. You can use the table above to compare them. You can also click the “Speak to a broker” tab if you’d like some advice from a car loan broker.
Hope this helps,
Elizabeth
I have come to the end of my car loan and have a balloon left on it I have advertised the car privately to sell but not getting any interest as the balloon payment is quite high $35000 I don’t want to get in a situation where I need to buy another expensive car to get a trade price to cover the balloon as my goal is to reduce the monthly car payments as it is having an impact on my finances I’m wondering if my best option is to refinance the car for a 3 to 4 year term the car is a Holden HSV gts and in reasonably good conditions with low kms
Hi Anna72,
I can’t offer you any personal advice as the right option for you will depend on your own situation. However, sitting down and crunching the numbers may be a good place to start.
You can use a car loan comparison calculator to see where you might stand if you choose to refinance, and can also compare some of the available rates and fees using the comparison table on the page above.
If you aren’t getting much interest in your car, you could post it on a few different sites – take a look at some of our car selling tips here. You can also consider refinancing the balloon payment with your current lender.
I hope this information has been of use.
Thanks,
Elizabeth
Hi there I recently purchased a near new GT falcon for $56,000 at 13% paying around $1100 a month. It’s not the biggest rate or the smallest but because of all the hidden fees and what not the payout figure is roughly around $59000. Would there be any lenders out there that would take over this loan from my current lender. I’m sure i can get a better rate than 13%. Thanks
Hi Mark88,
Thanks for your question.
I can’t recommend a specific lender to you but you may want to consider a car loan broker. You can find out if you’re eligible by using the broker forms on this page and this page.
I hope this will help.
Thanks,
Elizabeth
If I own my car outright bought fir cash are there lenders who will refinance my car which is about 1 year old
Hi Graeme,
Thanks for your question.
Car loan refinancing refers to the process of moving a loan you have with one lender to another lender, as you own your car outright this is not an option for you. If you want to take out a loan and use your car as security, some lenders will let you attach it to the loan as a guarantee. You can find out more about secured loans on this page.
I hope this has helped.
Thanks,
Elizabeth
Hi,
Is there anyway on refinancing my car?
I currently got a car about 9months ago. Because it was my first, i jumped at the pre-approved loan, not reading the term or anything signed the paper. I have a 27.99% interest on that car loan (spending way too much money) my car was roughly $15,000.00 my repayment is $148.00 a week.
So please if i can refinance my car for lower rate, i would muchly appreciate it.
Kind Regards,
Naz
Hi Naz,
Thanks for your question.
Please note that finder.com.au is an online comparison and information service and is not a product issuer. If you would like to discuss your eligibility or options, please get in touch with a lender on this page.
You’ll need to check with your existing lender and enquire about what fees will be charged if you exit the loan. You may find that the fees will outweigh the potential savings you get by going with a lower interest rate. In this case it may not make financial sense to refinance.
Cheers,
Shirley
is there any way regarding refinancing my car without extra cost?
Hi Khel,
Thanks for your question.
Typically when you refinance you calculate the fees that are payable against the savings that you make. If your savings outweigh the fees then this could be a good indication that refinancing your car is possible without incurring extra costs.
Cheers,
Shirley