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Car loan refinancing

Learn about and compare car loan refinancing options in Australia.


Fact checked
If you feel like you're paying too much for your car loan, refinancing can help save you money by giving you a lower rate, fewer fees and more flexibility.

Read on to find out if it's right for you, how to refinance your car loan and compare your options now.

IMB New Car Loan

IMB New Car Loan

5.45 % p.a.

fixed rate

5.80 % p.a.

comparison rate

  • No monthly fees
  • No early repayment fees
  • Borrow up to $75,000
Security Logo

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: 5.45% p.a.
  • Comparison rate: 5.8% p.a.
  • Interest rate type: Fixed
  • Application fee: $275.12
  • Minimum loan amount: $2,000
  • Maximum loan amount: $75,000
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Compare car loan refinancing options

Data indicated here is updated regularly
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
IMB New Car Loan
5.45% (fixed)
1 to 7 years
$275.12 ($250 Application fee + $25.12 PPS registration fee)
You'll receive a fixed rate of 5.45% 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. - New and Dealer Used Car Loan
From 4.67% (fixed)
3 to 5 years
You'll receive a fixed rate from 4.67% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment. Note: Settle the loan before 30 November 2020 and enter the draw to win a $1,000 fuel voucher. Terms & conditions apply.
NRMA New Car Loan
From 4.99% (fixed)
1 to 7 years
You'll receive a fixed rate from 4.99% p. a.
Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.

Compare up to 4 providers

Some car loan refinancing options

  • Beyond Bank Low Rate Car Loan "Special Offer": 5.16% p.a. comparison rate. A limited time offer – get a car loan with a 4.89% p.a. variable rate.
  • RACQ Bank Car Loan Special: 6.15% p.a. comparison rate. A car loan suitable for new vehicle purchases with no monthly administration fees.
  • IMB New Car Loan: 5.8% p.a. comparison rate. A new car loan with no monthly service fees and no early repayment.
  • bcu Car Loan: 6% p.a. comparison rate. A flexible car loan with redraw facility and fee-free early payout.

Why should I refinance my car loan?

There are a number of reasons to refinance your car loan, but basically it's about getting a better deal than your existing loan.

This could mean reducing your repayments by getting a lower interest rate or giving yourself longer to pay off the loan, getting a loan with better features or going with a different lender.

If you've improved your credit score since you received your car loan, or interest rates have dropped, it's worth looking at refinancing as a way to lower your interest rate. Many car loans offer interest rates from 5% to 8%, so if you're currently paying more, it may be worth refinancing.

How does car loan refinancing work

To refinance your car loan, you simply need to get approved for a new loan that covers the amount you still owe on your existing loan. You use the funds from the new loan to pay off your existing car loan, then make repayments on the new loan.

You want to get a loan with a lower interest rate or better terms, so you can save on interest or make your repayments more manageable.


You received a car loan for $20,000 with an interest rate of 12%. You have already paid $5,000 off the loan, leaving you with $15,000 left to pay.

You choose to refinance your loan with another lender offering an interest rate of 8%. You apply for a $15,000 loan with the new lender and use the funds to pay off the remaining amount on your original loan.

You then continue to make repayments on the new loan, but are now paying 8% interest, instead of 12%, saving money in the process.

How to refinance your car loan in five steps

  1. Compare your options. Make sure you meet the eligibility criteria and are aware of all fees and charges on the new loan. Once you've found the right loan for you, click "Go to site" to apply and select refinancing as the loan purpose.
  2. Submit the relevant documents and information. This will usually include information about the lender you're with and details about your car.
  3. Pay off your previous loan. Once approved, your new lender may do this for you or you may be required to organise this yourself.
  4. Close your previous loan. Once you have paid off the old loan, you should ensure the loan account is closed.
  5. Repay your new loan. You then continue to make payments on this loan.

Things to keep in mind when refinancing your car loan

  • The amount you pay over the life of the loan will be less. This is very important to check. Less interest does not always mean lower weekly repayments, but the overall amount should be lower over the life of the loan. Remember to take into account up-front and ongoing fees as well as the loan term you're asking for and use a car loan repayment 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. While the size of your repayments will be lower, you will have to make more repayments, meaning you'll pay more interest.
  • 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.
  • Check if you'll be charged a fee for paying off your loan early. If so, factor in the cost of the fee when working out if you'll save money by refinancing.

Picture: Shutterstock

Related Posts

Car Loan Offers

Important Information*
Logo for IMB New Car Loan
IMB New Car Loan

You'll receive a fixed rate of 5.45% 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.

Logo for Beyond Bank Low Rate Car Loan "Special Offer"
Beyond Bank Low Rate Car Loan "Special Offer"

You'll receive a fixed rate of 4.89% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.

Logo for RACV New Car Loans
RACV New Car Loans

You'll receive a fixed rate from 5.69% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.

Logo for Stratton Finance New Car Loan
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 $250,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.

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34 Responses

  1. Default Gravatar
    sonyNovember 7, 2018

    I want to refinance my car.

    • Avatarfinder Customer Care
      JhezNovember 9, 2018Staff

      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.


  2. 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.


  3. 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

    • Avatarfinder 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.


  4. 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?

    • Avatarfinder 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,


  5. Default Gravatar
    RoyMay 11, 2016

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

    • Avatarfinder 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,


  6. 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

    • Avatarfinder 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.



  7. 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

    • Avatarfinder 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.



  8. 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

    • Avatarfinder 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.



  9. Default Gravatar
    NazMarch 17, 2015


    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,


    • Avatarfinder Customer Care
      ShirleyMarch 18, 2015Staff

      Hi Naz,

      Thanks for your question.

      Please note that 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.


  10. Default Gravatar
    KhelMarch 13, 2015

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

    • Avatarfinder 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.


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