Estimated Total Savings
$ 964
extra cost over the life of the loan
New Monthly Payment $570
Monthly Savings $20 more /mo
New Total Interest $2,364
Total Current Interest Remaining $1,400

Payment Breakdown

Payment breakdown chart showing principal vs interest

Balance Over Time

Line chart showing balance over time and interest paid

Is Refinancing Worth It?

Refinancing your car loan can be a smart way to free up cash or save on interest, but timing is everything.

When to Refinance

The best time to refinance is when market rates have dropped or your credit score has improved significantly.

  • Wait at least 6-12 months after your original loan.
  • Ensure your car isn't 'underwater' (owing more than market value).
  • Check for prepayment penalties on your current loan.

Lowering Monthly Payments

You can lower your payments by getting a lower interest rate, extending the loan term, or both.

  • A lower rate always saves you money.
  • Extending the term lowers payments but may increase total interest.
  • Ideal if you need more breathing room in your monthly budget.

Maximum Interest Savings

To save the most money, aim for the lowest rate possible and keep your remaining term the same or shorter.

  • Total savings = (Old Payment × Old Term) - (New Payment × New Term).
  • Any fees for the new loan should be subtracted from your savings.
  • Even a 1-2% rate drop can save over $1,000 on a typical SUV loan.