Why Refinance Your Auto Loan? Benefits of Refinancing Your Car

Want to know how to lower your car payment? Of course! Who wouldn’t? Refinancing is just about the only thing that does just that, saving money for other things life throws your way. If you want to lower your car payment you need to talk to CARS!

Why refinance? You know you want to lower your car payment, but is refinancing really the only answer?

Truth be told, there are several benefits of refinancing your car loan, and if you are wondering how to lower your car payment, it can do that and much, much more.

Refinancing your auto loan can result in hundreds of dollars in savings each year and thousands of dollars over the life of your loan.

Why Refinance with CARS

Since 1998, we have helped thousands of customers refinance their auto loan. Every customer’s reasoning behind “why refinance” is different and our representatives are charged with taking the time to understand each customer’s goals while clearly explaining the refinance options available.

Did you get your best interest rate when you purchased your vehicle?

Has your credit score improved to the point where you may now qualify for a lower interest rate?

Have interest rates dropped since you purchased your vehicle?

We routinely help customers with one or more of the following:

  • Lower their interest rate
  • Lower their monthly car payment
  • Reduce the amount of interest paid over the life of the loan
  • Shorten their term
  • Take time off from their car payments1

Our mission is to help you save money on your auto loan. The following scenarios illustrate a couple of the ways we work with customers to meet their needs.

How to Lower Your Car Payment with CARS

The following example shows the benefits of refinancing your car and how a lower interest rate can lower your monthly auto payment and save thousands of dollars in interest over the life of your loan.

This is an example of keeping the same term and simply lowering the interest rate. There are significant savings in the monthly payment and the finance charge (interest)3 paid over the life of the loan.

Original Loan Refinance Loan
Loan Amount: $25,000.00 Loan Amount: $25,000.00
Term: 72 Months Term: 72 Months
Interest Rate (APR)2: 6.5% Interest Rate (APR)2: 2.75%
Monthly Payment: $417.97 Monthly Payment: $376.19
Finance Charge (Interest)3: $5,093.83 Finance Charge (Interest)3: $2,085.68


Monthly Payment Savings = $41.78 per month

Total Savings Over Life of Loan = $3,008.15

Why Refinance? Shorten the Term of Your Loan Along With a Lower Interest Rate

The following example shows how shortening the term of the loan by just 6 months and lowering the interest rate can save you thousands of dollars over the life of your loan.

In this example, the monthly payment amount doesn't change much but the term of the loan is decreased by 6 months. If you are comfortable with your current monthly payment amount, then this is a great way to save interest dollars, build equity faster, and pay the loan off in less time.

Original Loan Refinance Loan
Loan Amount: $25,000.00 Loan Amount: $25,000.00
Term: 72 Months Term: 66 Months
Interest Rate (APR)2: 6.5% Interest Rate (APR)2: 2.75%
Monthly Payment: $417.97 Monthly Payment: $407.65
Finance Charge (Interest)3: $5,093.83 Finance Charge (Interest)3: $1,904.90


Total Savings Over Life of Loan = $3,188.93

Achieve Results with CARS

Now that you know the many benefits of refinancing your car and how to lower your car payment and the length of your loan through refinancing, apply online to see if you qualify. Discover how CARS makes refinancing auto loans easy.

1 With deferred payment option, interest on your loan will accrue during the deferred period.

2 Annual Percentage Rate.

3 The amount of interest that is paid to the lender over the life of the loan.