A Refinance car loan works like a debt consolidation loan or remortgage – you pay off your current car loan with a refinancing car loan from a different lender that has a lower APR in order to:
- Free up cash
- Lower your monthly repayments
- Shorter the repayment term
This can save you money because it means your monthly car loan repayments are much less, and your interest rate is lower, which can allow you to pay off the balance of your car loan quicker. People tend to use the money they save by getting a refinance car loan to:
- pay off other debts
- accelerate your car loan payoff
To compare all the latest car loan deals on the market, use our FREE car loan calculator.