A car loan means that you are using a loan in order to purchase a vehicle, and pay for it over time. The loan comes with a fee (interest rate) that must be repaid on top of the total cost of the vehicle.
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- Auto Loan Refinancing Calculator
Auto Loan Refinancing Calculator
Our free Auto Loan Refinancing Calculator helps Canadian drivers compare their existing car loan with a refinance offer. Enter your balance, interest rates, and terms to instantly see new monthly payments, interest costs, and potential savings.
Find Out How Much You Can Save on Monthly Car Payments
Thinking about lowering your monthly car payments? Our free Auto Loan Refinancing Calculator compares your current loan with a new refinance offer so you can see potential monthly savings, total interest differences, and lifetime benefits.
Refinance Your Auto Loan
If your lender charges admin/registration fees and you roll them into the new loan, include them here.
Your Refinancing Results
Current Payment
$0
New Payment
$0
Monthly Savings
$0
Total Interest – Current
$0
Total Interest – Refi
$0
Lifetime Savings
$0
Results are estimates for planning only. Actual approval, rate, and payment depend on lender review.
How to Use the Auto Loan Refinancing Calculator
- Enter your remaining balance, current APR, and months left.
- Enter a new APR and term from a refinance quote. Add any fees if they’ll be financed.
- Click Calculate Savings to compare old vs. new monthly payments, total interest, and lifetime savings.
Tip: Try a shorter term with a lower rate to reduce both payment time and interest paid.
Auto Loan Refinancing Basics
When refinancing makes sense
- Your credit score improved since you financed at the dealer.
- Market rates dropped or you qualified for a better APR.
- You want to lower monthly payments by extending the term.
- You want to pay less interest by shortening the term at a lower APR.
What lenders consider
- Credit & income stability and debt-to-income ratio.
- Vehicle value & age – many cap age/mileage; high mileage can limit approval.
- LTV (loan-to-value): large negative equity can restrict options.
Costs & gotchas
- Admin/registration fees – include them in the calculator’s fee field to see the impact.
- Prepayment penalties on your current loan may reduce savings.
- Term extension lowers payments but can increase total interest – check “Lifetime Savings.”
- Insurance – some lenders require full coverage; keep this in mind for overall budget.
Break-even check
- Compare old vs. new total interest plus any fees.
- If the new total is lower and payments fit your budget, refinancing likely makes sense.
Auto Loan Refinancing FAQs
Can I refinance with negative equity?
It’s possible, but options may be limited. Some lenders allow rolling negative equity into the new loan, which can raise your payment and total interest.
How soon after purchase can I refinance?
Many lenders let you refinance after 3–6 months of on-time payments. Some will consider earlier on a case-by-case basis.
Will refinancing hurt my credit?
A credit inquiry may cause a small, temporary dip. On-time payments on the new loan can help your score over time.
Are there fees to refinance?
Yes, some lenders charge administrative or registration fees. Add them in the calculator to see if savings still make sense.
Does refinancing always save money?
Not always. Extending the term can increase total interest even if the payment falls. Compare “Total Interest – Current” vs. “Refi.”
Can I shorten my term when refinancing?
Yes. If you can afford a higher payment at a lower APR, you’ll usually pay far less interest over the life of the loan.
Do I need a co-signer?
Only if your credit or income doesn’t qualify on its own. A strong co-signer may help you secure a better rate.
What documents are required?
Typically your current loan statement, vehicle info (VIN, mileage), proof of income, insurance, and government ID.
Find Auto Loan Refinance Options
Compare lenders and apply securely online. Start lowering your payments today.
See My Refinance OptionsWhat is a car loan?
When should you consider a car loan?
Auto financing is used when purchasing a vehicle, such as a car, a pickup truck, an SUV or a van. Most people utilize auto financing when purchasing a car, unless they are buying it in outright in cash.
What are the current average car loan rates?
Car loan rates can vary greatly depending on your personal financial history, the lender you are getting the financing from, the type of car you are buying and more. In general, car loan annual interest rates can be anywhere from 2% and go up to 30%+.
How do I qualify for a car loan?
To qualify for a car loan, you will typically need: Proof of residency in Canada, credit history, steady income from employment and government issued ID.
How does a car loan work?
Auto financing is a secured type of loan, which means that the vehicle you are purchasing is the collateral. You will risk losing the vehicle if you are not repay on time. Typically auto financing loans come with a term of 3 to 6 years, but this can vary on case by case basis.
How are car payments calculated?
The car payments will be determined based on the total cost of the car, the downpayment that you contribute, the interest rate, and term length. Make sure that you carefully review and understand the terms of your car loan agreement and how the payments are calculated.
What are the best places to get a car loan?
The best car loans are hard to find all by yourself. Especially because different loan types and different lending companies are better suited for different people. Check out the list of top auto loan providers at Smarter Loans as a starting point.
How can I get a car loan online?
There are many companies that offer auto loans in Canada entirely online. At Smarter Loans you can find such companies, apply for an auto loan from the comfort of your home, and receive a pre-approval in 24 hours.
