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AMOUNT
$7.5K to $200K (Refinance existing auto loan)
INTEREST RATE
From 6.93% (lower your auto loan interest rate)
TERMS
Up to 96 months
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More About Refinancing Your Auto Loan in Canada
- What Is Car Refinancing?
- When Should I Refinance my Car?
- How Do I Refinance My Car?
- Pros and Cons of Refinancing
- Alternatives to Refinancing
- Frequently Asked Questions About Auto Refinancing
What Is Car Refinancing?
auto loan
When Should I Refinance my Car?
Common reasons for refinancing include:
- If your credit score has improved
- If loan rates are down in general
- If you have built equity in the vehicle
- If you want to change the length of the loan
- If you have a problem with your current lender
- If you wish to remove a co-signer or add a payee
- Your car is more than 10 years old
- You bought the car very recently
- Your existing loan has punitive prepayment penalties
- Your credit score has worsened
- You do not have regular income
- You have accumulated more debt
- You are underwater on your existing loan
How Do I Refinance My Car?
Refinancing Eligibility
You may struggle to qualify for a new auto loan if:- You no longer have paid employment
- Your credit score has gotten worse
- Your car is much older
- You are underwater on your existing loan
Information You'll Need
Your personal information:- Name
- Date of birth
- Email address
- Phone number
- Residential address
- Employment status
- Proof of income (usually 3 months of paystubs)
- Proof of residency
- Banking information
- Insurance information
- VIN
- Mileage
- Make, model and year
- Lender
- Loan balance
- Loan term
- Amount you need to refinance
Decisions To Make When Refinancing
- How much do you need to refinance for? Most people go with the remaining balance of the existing loan, plus any penalties and fees, but there are options for more or less if you either need cash back, or are able to help pay down the car debt.
- How long a loan term do you want? Longer term loans will cost less monthly, but more overall because of compound interest. Shorter term loans will get you out of debt faster, but result in higher monthly payments.
- Are there other factors to consider, such as adding or removing a payee? Do you need a loan with more flexible terms, or better customer service? Do you want to change your payment frequency?
What To Look For When Comparing New Loans
- Loan amount
- Interest rate and APR
- Fees
- Repayment flexibility
- Reputability of provider
Applying for Refinancing
Looking to finance your dream car? Take the guesswork out of your monthly payments and make an informed decision by utilizing the user-friendly car loan calculator.
Pros and Cons of Refinancing
Pros
- Lower your monthly costs via lower interest rates or a longer loan term
- Lower your total interest paid with lower interest rates or a shorter loan term
- Switch to a provider with better service
Cons
- Fees and prepayment penalties may offset financial gains from better interest rates
- Lengthening loan term will increase the overall cost of the loan
- Not always possible, if your financial situation has changed negatively
Alternatives to Refinancing
home equity loandebt consolidation loan30%
Frequently Asked Questions About Auto Refinancing
Am I eligible to refinance my car loan?
What is the average car refinancing interest rate?
Can I refinance my car if I have bad credit?
bad creditCan I refinance my car to get cash back?
Will refinancing my car affect my credit score?
How can I lower my car repayments?
What fees do I need to pay when refinancing my car?
Expert Review & Editorial Standards
This page was researched, written, and reviewed by financial professionals with expertise in Canadian lending regulations. All information is regularly updated to reflect current rates, terms, and regulatory changes.
Jenna West
Financial Writer & Content Director
Jenna has covered the Canadian FinTech and consumer lending industry since 2017. She specializes in regulatory updates, consumer protection, and helping Canadians navigate complex financial products.
- 8+ years analyzing Canadian consumer lending
- Monitors FCAC and provincial regulatory changes
- Specializes in personal loans and alternative lending
Amy Orr
Financial Content Specialist
Amy is a financial writer with 10+ years covering Canadian, U.S., and U.K. financial markets. She holds a Masters in Finance from the University of Edinburgh Business School and formerly worked in the hedge fund sector.
- Masters in Finance, University of Edinburgh
- Former hedge fund professional
- Published in major financial publications
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Last Updated: October 10, 2025 | Next Review: Ongoing monitoring
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