Man in car after refinancing car loan

Car Loan Refinancing

Want to get a better deal on your car loan? Consider refinancing.

Did you know you can refinance your car loan to maximise your savings and reap the benefits of a lower interest rate? The guide below will take you through the ins and outs of refinancing and show you some options to compare.

IMB New Car Loan

IMB New Car Loan

5.89 % p.a.

fixed rate

6.24 % p.a.

comparison rate

  • No monthly fees
  • No early repayment fees
  • Borrow up to $75,000
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100% confidential application

IMB New Car Loan

A low rate loan to finance new vehicles or cars up to two years old. Borrow up to $75,000.

  • Interest rate: 5.89% p.a.
  • Comparison rate: 6.24% p.a.
  • Interest rate type: Fixed
  • Application fee: $250
  • Minimum loan amount: $2,000
  • Maximum loan amount: $75,000
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Car Loans you can refinance with right now

Rates last updated October 16th, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
IMB New Car Loan
5.89% (fixed)
6.24%
$2,000
1 to 7 years
$0
$250
Borrow as little as $2,000 at a competitive fixed rate
Finance a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.
Latitude Motor Vehicle Loan
From 6.99% (fixed)
8.1%
$5,000
1 to 7 years
$10
$295
Finance a range of vehicles including cars, motorbikes, boats and caravans.
Apply online to finance a new or used motor vehicle and receive a response in 90 seconds. You will receive a competitive tailored rate of between 6.99% p.a. to 14.99% p.a.
Stratton Finance New Car Loan
From 5.29% (fixed)
6.56%
$18,000
1 to 7 years
$8.90
$459.20
Fixed or variable rates starting from 5.29% p.a.
Apply for up to $100,000 and have up to 7 year(s) to repay. You can use cash or trade in a vehicle to use as a deposit.
Loans.com.au - New Car Loan
5.44% (fixed)
5.99%
$5,000
3 to 5 years
$0
$400
Optional balloon payment available to reduce your repayments.
A competitive rate car loan suitable for a new cor used car.
Beyond Bank Low Rate Car Loan
From 5.69% (fixed)
5.97%
$25,000
1 to 7 years
$0
$175
Offset your interest with a Car Budget Account.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
You'll receive a fixed rate from 8.49% p.a. based on the value of your car
Get a competitive rate and apply for a larger loan up to $80,000 when you attach a new or used car as security to the loan.
Westpac Car Loan
From 8.49% (fixed)
9.67%
$10,000
1 to 7 years
$12
$250
Use a new or used car as security.
A flexible loan thats lets you benefit from a car search tool as well as the option to borrow extra for on-road costs.
RACV New Car Loans
From 5.99% (fixed)
6.55%
$15,000
1 to 7 years
$0
$399
Benefit from 5-hour pre-approval.
A competitive rate car loan from RACV with no monthly fees.
IMB Secured Personal Loan
6.89% (fixed)
7.24%
$2,000
1 to 5 years
$0
$250
Secure this loan with a car and use the funds for any purpose.
Competitive 6.89% p.a. rate available to all approved applicants. Loan amounts up to $60,000 available.
Australian Military Bank Car Loan
From 5.71% (fixed)
6.57%
$1,000
1 to 7 years
$10
from $100 to $500
You'll receive a fixed rate between 5.71% p.a. and 8.66% p.a. based on your personal credit history
A flexible loan to help you finance a car, motorbike or boat up to five years old.
Community First Credit Union New Car Loan - Variable
From 5.34% (variable)
6.1%
$10,000
1 to 7 years
$5
$195
Apply for up to $.
Finance a new vehicle at a competitive rate and repay it over terms up to 7 years.

Compare up to 4 providers

Car loan refinancing options to compare

  • 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.

Why should I refinance?

If you're still on the fence about refinancing your car loan, here are a few benefits to consider:

  • You can reduce your repayments. Better rates and fees may be available and refinancing can help you unlock these.
  • You can 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 pay the lump sum.
  • You can sign up with a better lender. Not all lenders are created equal. Some offer discounts on other products when you sign up for a car loan, better customer service, easier account management and add-ons that may not have been available with your previous lender.

How does refinancing a car loan work?

Refinancing your car loan means simply switching to a different lender that may be able to offer you lower rates, fewer fees or easier repayment options to help you pay off your loan sooner. If done correctly, refinancing your car loan can potentially save your hundreds, if not thousands, of dollars.

You can either refinance yourself or enlist the services of a finance broker, who will work on your behalf to get the best refinancing option. Either way, it’s important to compare the car loan refinancing options out there before making the decision to switch.

What should I look for in a refinancing car loan?

  • 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. Lower repayments may just mean you're paying more interest over the loan term, usually because the term has been extended to lower your interest.
  • The loan has the features that you want. If you want to be able to make extra repayments, repay the loan early, 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's up to you to sign up with a reputable compare. See how transparent the lender is with rates and fees and how easy they are to contact.

How to compare car loans when you want to refinance

If you believe refinancing your car loan could be a good option, there are some features you must compare when selecting what car loan is right for you:

  • 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 car loans allow you to make additional repayments so you can pay off your car loan quicker. If flexibility is important to you, check out what flexibility loans can offer you and compare accordingly.
  • 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. When you refinance your car loan, one of the most important advantages is typically 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. If you extend your loan term when you refinance, you can lower your repayments. 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. Refinancing may mean you end up paying more interest in the end. You may refinance with a lower interest rate but extending the loan term may mean you end up paying more interest. It’s recommended you figure out upfront if it is worth refinancing and if you will end up saving on interest.
  • Exit costs and setup costs. Switching from your current car loan may mean incurring exit costs that you must pay. You may also be liable for setup costs with your new car loan. These are both additional costs and cons that you need to consider.

How you can refinance your car loan

  1. 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.
  2. 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 to you, click "Go to Site" to apply.
  3. Select "refinancing" as the loan purpose.
  4. Submit the relevant documents and information. This will usually include information about the lender you're with and details about the car.
  5. Pay off your previous loan. This may be done on your behalf by your new lender or you may be required to organise this yourself.
  6. Close your previous loan. While the loan is paid off it's important to ensure the loan account is closed.

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Car Loan Offers

Important Information*
IMB New Car Loan

You'll receive a fixed rate of 5.89% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.

Loans.com.au - New Car Loan

You'll receive a fixed rate of 5.44% p.a.
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.

Latitude Motor Vehicle Loan

You'll receive a fixed rate between 6.99% p.a. and 14.99% p.a. based on your risk profile
Apply for a loan from $5,000 to finance a new or used car. Flexible repayments and options to finance a classic car.

Stratton Finance New Car Loan

You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.

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32 Responses

  1. Default Gravatar
    SavvasAugust 31, 2017

    I have a car loan and I would like to refinance it somewhere else with a better interest rate

    • Default Gravatar
      JonathanAugust 31, 2017

      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

  2. Default Gravatar
    AJDecember 5, 2016

    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

    • finder Customer Care
      MayDecember 6, 2016Staff

      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

  3. Default Gravatar
    bobMay 25, 2016

    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?

    • finder Customer Care
      ElizabethMay 25, 2016Staff

      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

  4. Default Gravatar
    RoyMay 11, 2016

    Hi, I want to refinance my loan. looking for right advice.

    • finder Customer Care
      ElizabethMay 12, 2016Staff

      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

  5. Default Gravatar
    Anna72February 28, 2016

    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

    • finder Customer Care
      ElizabethFebruary 29, 2016Staff

      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

  6. Default Gravatar
    mark88December 21, 2015

    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

    • finder Customer Care
      ElizabethDecember 21, 2015Staff

      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

  7. Default Gravatar
    GraemeDecember 3, 2015

    If I own my car outright bought fir cash are there lenders who will refinance my car which is about 1 year old

    • finder Customer Care
      ElizabethDecember 4, 2015Staff

      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

  8. Default Gravatar
    NazMarch 17, 2015

    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

    • finder Customer Care
      ShirleyMarch 18, 2015Staff

      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

  9. Default Gravatar
    KhelMarch 13, 2015

    is there any way regarding refinancing my car without extra cost?

    • finder Customer Care
      ShirleyMarch 16, 2015Staff

      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

  10. Default Gravatar
    ColleenFebruary 5, 2015

    I am wanting to refinance my car loan, The payout figure is $14,000 and the interest is currently 23.99%. I am ex bankrupt but have been discharged and the &yrs were up oct 3rd 2015.
    Can you help me with this. the car will be a secured loan.

    Colleen

    • finder Customer Care
      ShirleyFebruary 5, 2015Staff

      Hi Colleen,

      Thanks for your question.

      Please note that finder.com.au is an online comparison service and is not a product issuer. If you would like to discuss your eligibility or options, please get in touch with a lender featured on this page.

      As an ex-bankrupt, your name will still appear on the National Personal Insolvency Index (NPII) which is accessible by lenders should they run a credit check. You may want to approach a smaller or second tier lender instead.

      Cheers,
      Shirley

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