Getting a new car is exciting! It’s a big purchase that stays with you for a long time. Maybe you’re getting a new car for work, for family road trips, for your business, or to explore Australia’s beautiful places. Picking the right car is a big decision.
When you’re excited about a new car, it’s easy to rush through the process. Before you know it, you have the keys and a new monthly payment to make. With the cost of living going up in Australia, car loan repayments that seemed fine at first can start to feel like too much for your budget. The Australian Bureau of Statistics reported that “All household types saw rises in quarterly living costs in the March 2025 quarter ranging from 0.6% to 1.6%.” Many Australians are feeling this squeeze and are looking for ways to ease the money pressure.
If this sounds like you, now might be the perfect time to look at refinance car loan options. Changing your car loan can help your budget in a positive way. Refinancing can lower your repayments, save you money on interest, and even combine many debts into one easy payment.
It’s important to consider why your current loan is with a particular bank or lender. While they may have offered the best deal at the time, that doesn’t mean it’s still the most competitive option today. Lenders assess a range of factors when determining your interest rate and repayment terms, such as your employment stability, how long you’ve lived at your current address, and your history of managing previous loans.
As time passes, a number of these situations might have changed, meaning you could now qualify for an even better deal than you currently have. Maybe when you first got your loan, you chose a shorter time to pay it off faster, but with changes in the economy and what worked then might not work for you now.
That’s why it’s smart to talk to a dedicated lending specialist, like Fox Finance Group. We can look at your current loan, explore your options with our panel of 50-plus lenders, and find a loan setup that fits your needs and life today.
A big plus of refinancing your car loan is getting a lower interest rate. If rates have gone down since you first got your loan, or if your credit score has gotten better, lenders can often give you a better deal with lower rates and fewer fees. Over the life of the loan, this can save you money on interest and free up cash.
A refinanced car loan may make your repayments smaller. This makes your loan easier to handle and gives you extra cash that can really help your household budget. Sometimes, banks only offer short loan terms, like three years, which usually means higher monthly repayments. When you refinance, lowering interest rates isn’t the only way to cut your payments; you can also make the loan term longer, which leads to a clear drop in your payment amounts.
When you consider a car loan refinance, we believe there is more to think about than just who has the lowest rate. It’s a great time to look at all factors of your loan, including how it’s set up and its rules. Not able to make extra payments and pay off your loan early? Look for a lender that lets you do that without extra fees. Some further options to think about are, loans that include a balloon payment (a lump sum at the end), lenders with lower ongoing fees, or even options that don’t need your car as security. It’s important to think about all parts of your loan to find what will work for you in the long run.
Auto car loan refinance also gives you a chance to combine other debts. By letting your new bank pay off your other loans or credit cards, as part of your car loan refinance, you can combine many payments into one easy payment. This makes your finances simpler and can lower your total interest costs. This plan makes it easier to keep track of your payments and can reduce the financial stress on your budget, helping you get back in control of your debt.
Another benefit is getting extra money for another purpose with a refinanced car loan. If you’ve paid down some of your current loan, you can borrow more money on top of it. Depending on the amount, your new payments might stay the same or be very close to what you pay now. This extra money could be used for many things, like home improvements, a much-needed vacation, car accessories, or anything else you can think of!
Don’t keep paying more than you need to or stay with a loan that doesn’t fit your needs.
 Rowdie Lang |
Rowdie has been a part of our Team since 2020. He has witnessed firsthand the ongoing evolution of the finance industry as technology continues to change the way customers' access financial services. He has a passion for helping people and relishes the opportunity to work alongside our teams every day as they help our customers financial dreams come true.
|
 |
Reviewed by: Nathan Drew ✅ Fact checked 📅 Last updated: Jul 29, 2025 |
Yes, you can often refinance with your current lender. Many people prefer to do this for convenience. However, it’s always wise to also check what other lenders are offering, as they might have better rates or terms for a new loan.
When you apply for a new loan, lenders do a ‘hard enquiry’ on your credit report. This can slightly lower your credit score.
With Fox Finance Group, we complete a ‘soft enquiry’ to check your credit first. This doesn’t show on your credit report. Only when you pick a lender and we submit your application will the lender do a ‘hard enquiry,’ which will then appear on your credit file and might slightly lower your score.
It can be very worthwhile! If you can get a lower interest rate, reduce your repayments, or combine other debts, refinancing can save you a lot of money over time and make your finances easier to manage.
You’ll typically need documents like a valid driver’s licence, proof of income (payslips or tax returns), details about your current car loan (the balance), and information about your vehicle (make, model, VIN). Your dedicated lending specialist will be able to help you obtain all the necessary documents.
