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What is auto loan refinancing?

Your friend told you to 'refinance your auto loan' and you're asking yourself 'what is auto loan refinancing?'
You probably have heard of mortgage refinancing, right? Well auto loan refinancing is practically the same:

  • You look for a new auto loan company that offers lower rates than your current one.
  • You apply for a new loan and get approved.
  • You give the new lender authority to pay off your existing loan
  • You start paying the new auto loan company


Auto loan refinancing allows you to lower your monthly payments and/or get cash out of your current auto loan. It's not nearly as common as refinancing your mortgage though! 47% of all funded mortgage applications were refinances. Only 5% of all funded auto loan applications were refinances.

The problem is: nobody knows you can refinance an auto loan and even if you know, you don't know where to start or who to contact! Auto loan companies don't want you to know because refinancing lowers their margins.


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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CONTACT

WithClutch, LLC

2120 E El Parque Dr

Tempe, AZ 85282