Refinancing isn't always the right call. If only a few months are left on the loan, or the payout fee is close to what you'd save, staying put can be smarter. If repayments are already being missed, a new lender won't take the loan on, and your current lender's hardship team is the right first call. For a deeper look at the decision, read is it worth refinancing your car loan or personal loan.
Refinancing lets you reset the loan term, and that choice matters as much as the rate. A longer term lowers your repayment but adds interest over the life of the loan. A shorter term does the reverse. Here's how it plays out on a $50,000 car loan at the same interest rate in each case:
| Loan structure | Weekly repayment | Total interest |
| 5 years, no balloon | about $222 | about $7,900 |
| 5 years, 30% balloon ($15,000 due at the end) | about $173 | about $10,032 |
| 7 years, no balloon | about $168 | about $11,261 |
Illustrative figures only, calculated on the same interest rate for all three. Your own numbers depend on the rate and fees you qualify for.
The seven-year option gives the lowest weekly commitment. With a lender that has no early payout penalty, you can still pay the loan off sooner when your budget allows. That's why we often suggest a longer term with no payout penalty instead of a balloon. You get the lower repayment without a lump sum hanging over the end of the loan. If paying the car off faster is the goal, refinancing to a shorter term works the other way, with higher repayments and less interest overall. Our car loan repayment calculator lets you test different terms before we talk.
Refinancing a car loan means taking out a new loan to pay off the one you have now, usually with a different lender. People do it to get a lower repayment, less interest or a better term. You keep the same car. The new lender pays your old lender directly, and from then on you make repayments under the new loan's terms.
In practice it runs in five steps. First, we get your payout figure from your current lender, including any early payout fee. Then we compare lenders on our panel against your profile and your car, and show you the real numbers. Once you choose, we lodge the application and manage the paperwork.
On settlement, the new lender pays out your old loan in full. Your old lender then has to remove its security interest from the Personal Property Securities Register (PPSR), the national register that records who has a claim over a vehicle. For a car, that has to happen within five business days of the loan being paid out.
Lower Interest Rates: If interest rates have changed since you first took out your car loan, refinancing can help you save money by securing a lower interest rate. A lower interest rate can significantly reduce the total amount of interest you pay over the life of the loan.
Lower Monthly Payments: Refinancing your car loan can also help you lower your monthly repayments, making your car loan more affordable. This can be particularly helpful if your financial situation has changed, and you need to reduce your expenses, or are looking to save money overall.
Change in Credit Score: If your credit score has improved since you took out your car loan, you may be eligible for a lower interest rate, and therefore, lower monthly repayments.
Change in Lenders: If you're unhappy with your current lender, refinancing allows you to switch to a different lender that offers better terms, lower interest rates, or a different customer experience.
A dealership usually has three or four lenders on its panel, and it sends your deal to whichever one it thinks will approve it. We compare 50+ lenders, including specialists that lend on older cars, younger credit files and private sales. This is the part of the job we love the most: saving you money on a loan you're already paying.
Online comparison tools and instant quotes often work from a handful of details. Think the car's age, your age, an estimated credit score, and how long you've been in your job and home. What comes back is usually the lender's headline rate, the lowest one it offers, quoted without checking whether you actually qualify for it. Anything outside the lender's standard policy gets an instant no, even when there's a good reason a lender would say yes.
We work the other way around. We assess everything the lender will before we show you an option, including what you can comfortably afford, so the number you see includes every fee and holds up. When something sits outside standard policy, we explain the context to the lender and argue your case. Self-employed? We work with lenders who accept business activity statements and offer low doc car loans. Since 2006 we've handled more than 100,000 applications and over $1 billion in processed loans. Our customers rate us 5 stars on Google reviews.
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A secured car loan is a type of loan used to purchase a vehicle where the loan is secured against the car itself. This means that the lender holds the car as collateral until the loan is fully repaid.
The car being purchased is used as security for the loan, which means that if the borrower defaults on the loan, the lender has the right to repossess the vehicle to recover the outstanding debt. Because the loan is secured, the interest rates on a secured car loan are generally lower than those for an unsecured loan.
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Get the Best Business Car Finance
A business car loan is a facility used to fund the purchase of a vehicle for business purposes. The type of vehicle can vary in make and model, depending on the type of business it will be operating for. This product can best suit business owners, self-employed applicants with a valid ABN, or company managers and directors. There are several options available in this category of loans including Low Doc Car Loans, No Doc Car Loans, Truck Loans, Transport & Equipment Loans and more.
At Fox Finance Group, we’re committed to providing outstanding customer service and treating each customer with respect and integrity. We understand that finding a business car loan can be time consuming, which is why we’ll do all of the legwork for you. We can help you find business car finance that fits your budget and enables you to get the business vehicle you need.
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Let us Help You Get the Best Classic Car Finance Today!
We’re the Classic Car Finance experts! We get your passion for old school! We have been helping our clients with low rate classic car finance since 2006. The knowledge and expertise that we have gained over the years allows us to fully understand your passion and just about every model car thrown our way. We can also help you finance your new pride and joy whether you are buying from a classic car dealer, or a private seller.
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Bad Credit Car Loans Made Simple
Fox Finance Group takes pride in our extensive knowledge of lending to all varieties of client profiles. We understand that people experience unexpected events that may affect their credit score. Through our strong product knowledge, and relationships we have built with lenders, we have the ability to negotiate and compare the best options suited to your profile. If you’d like to know how much you qualify for before proceeding, we can discuss obtaining a pre-approval for you, which will entail all details of your loan before you commit to settlement. This is an obligation free service that we provide our customers.
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Private Sale Car Loans Made Simple
If you have just found your next sedan, 4WD, ute, hatch, or any other vehicle privately and you need some finance to purchase it, we’d love to help. Our knowledge and expertise in private sale car loans is demonstrated through our streamlined customer process. We make all arrangements for you with the private seller, all you’ll have to do is negotiate a price! This is an obligation free service that we provide our customers.
Apply for a private sale car loanLow Rate Secured Car Loan Specialists
A secured car loan is a type of loan used to purchase a vehicle where the loan is secured against the car itself. This means that the lender holds the car as collateral until the loan is fully repaid.
The car being purchased is used as security for the loan, which means that if the borrower defaults on the loan, the lender has the right to repossess the vehicle to recover the outstanding debt. Because the loan is secured, the interest rates on a secured car loan are generally lower than those for an unsecured loan.
Apply for a car loanGet the Best Business Car Finance
A business car loan is a facility used to fund the purchase of a vehicle for business purposes. The type of vehicle can vary in make and model, depending on the type of business it will be operating for. This product can best suit business owners, self-employed applicants with a valid ABN, or company managers and directors. There are several options available in this category of loans including Low Doc Car Loans, No Doc Car Loans, Truck Loans, Transport & Equipment Loans and more.
At Fox Finance Group, we’re committed to providing outstanding customer service and treating each customer with respect and integrity. We understand that finding a business car loan can be time consuming, which is why we’ll do all of the legwork for you. We can help you find business car finance that fits your budget and enables you to get the business vehicle you need.
Apply for a business car loanLet us Help You Get the Best Classic Car Finance Today!
We’re the Classic Car Finance experts! We get your passion for old school! We have been helping our clients with low rate classic car finance since 2006. The knowledge and expertise that we have gained over the years allows us to fully understand your passion and just about every model car thrown our way. We can also help you finance your new pride and joy whether you are buying from a classic car dealer, or a private seller.
Apply for a classic car loanBad Credit Car Loans Made Simple
Fox Finance Group takes pride in our extensive knowledge of lending to all varieties of client profiles. We understand that people experience unexpected events that may affect their credit score. Through our strong product knowledge, and relationships we have built with lenders, we have the ability to negotiate and compare the best options suited to your profile. If you’d like to know how much you qualify for before proceeding, we can discuss obtaining a pre-approval for you, which will entail all details of your loan before you commit to settlement. This is an obligation free service that we provide our customers.
Apply for a bad credit car loanPrivate Sale Car Loans Made Simple
If you have just found your next sedan, 4WD, ute, hatch, or any other vehicle privately and you need some finance to purchase it, we’d love to help. Our knowledge and expertise in private sale car loans is demonstrated through our streamlined customer process. We make all arrangements for you with the private seller, all you’ll have to do is negotiate a price! This is an obligation free service that we provide our customers.
Apply for a private sale car loan
Provide some details about yourself, your loan objectives, and the car you want to buy.
Our car loan Lending Specialists will run through all of the finer details to get your vehicle finance underway.
We'll get you approved with the lender best suited to your individual profile. You'll be able to go car shopping, knowing exactly what you can purchase!
Once everything is verified, we'll walk you through a simple contract signing process.
We'll communicate with your lender through the entire settlement process. You'll know exactly when you can pick up the new car!
Provide some details about yourself, your loan objectives, and the car you want to buy.
Our car loan Lending Specialists will run through all of the finer details to get your vehicle finance underway.
We'll get you approved with the lender best suited to your individual profile. You'll be able to go car shopping, knowing exactly what you can purchase!
Once everything is verified, we'll walk you through a simple contract signing process.
We'll communicate with your lender through the entire settlement process. You'll know exactly when you can pick up the new car!
Car loan refinancing is the process of replacing your existing loan with a new one, helping you save money by reducing interest and repayments. Our goal is to find you the lowest rates and repayments available, making the process simple and beneficial for you.
That’s where we come in. Our Car Re-Finance Lending Specialists do the hard work for you, comparing refinance rates from our panel of trusted lenders to find the best deal for your needs.
Oh yeah! This is the part of the job that we love the most, saving our customers money on what they are already paying on their current car loan. We consistently monitor current interest rates to maintain and offer the most competitive deals in Australia. You could challenge yourself to try and find a better deal, however, the interest rate offered and fees associated with the loan may vary greatly from loan to loan.
Yes, self-employed individuals can qualify for a car loan refinance. You’ll generally need to provide additional proof of income, such as tax returns or business activity statements (BAS). If full documentation isn’t available, we also offer a lite-doc (low-doc) option to simplify the application process.
The amount you save on your refinanced car loan depends on your new interest rate, the loan terms, and the remaining balance on your loan. Even a small reduction in your interest rate, for example from 9% to 6%, can save you hundreds or even thousands of dollars over the remaining term of your loan.
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