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How auto loan refinancing works?

How does Auto loan refinancing work? Let's walk you through the full pathway of the loan for you, the old lender, and new lender.

Nicholas Hinrichsen - Published: September 20, 2020

You may have heard about home refinancing - but did you know auto loan refinancing is even easier? We'll walk you through exactly how these loans work and a few key terms. First - an auto loan is what's know as a "securitized asset" meaning that in the event that the loan is not paid, the lender still has some "security" since the car itself still has value and can be resold (unlike a personal loan where all you have is your promise to pay the lender back). The process itself is very straightforward:

  • Find an auto lender who specializes in auto loan refinancing
  • Apply to that lender by giving them some details about yourself and your car
  • Once you're approved you'll need to sign a few simple loan agreements and locate the vehicle title (if its not electronic)


Its that easy!


Haven't explored refinancing yet?
WithClutch.com is a fully digital platform that lets car owners like you do so from the comfort of their own home. No need to set a foot in a bank or credit union. You can lower your rate or get cash in as little as 20 seconds.

Follow three simple steps to refinance your auto loan, get approved in seconds and save thousands in minutes.

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