Lending Direct Auto Refinancing Calculator
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Reviewed by Calculator Editorial Team
Use this calculator to estimate your potential savings when refinancing your auto loan through Lending Direct. Compare different loan terms, interest rates, and fees to make an informed decision about whether refinancing is right for you.
How to Use This Calculator
Enter your current loan details and the proposed refinanced loan terms to calculate your potential savings. The calculator will show you:
- Monthly payment difference
- Total interest saved over the loan term
- Break-even point (if applicable)
- Visual comparison of payment schedules
Use the results to decide whether refinancing makes financial sense for your situation.
How Auto Refinancing Works
Auto refinancing involves replacing your existing auto loan with a new loan that typically offers better terms. This process can help you:
- Lower your monthly payments
- Shorten your loan term
- Reduce your overall interest costs
- Improve your credit score by demonstrating responsible borrowing
The refinanced loan will have its own terms and conditions, so it's important to carefully review all aspects before proceeding.
Key Factors to Consider
When evaluating auto refinancing, consider these important factors:
- Current loan terms: Your existing interest rate, monthly payment, and remaining balance
- Proposed refinanced terms: The new interest rate, loan term, and any fees
- Credit score: A better credit score can qualify you for lower interest rates
- Vehicle equity: The difference between your vehicle's current value and what you still owe
- Refinance type: Whether you're refinancing to a lower rate, shorter term, or both
Important Note
Refinancing typically requires good credit and may not be suitable for everyone. Always compare the total cost of borrowing before making a decision.
Worked Example
Let's look at a typical refinancing scenario:
| Current Loan | Refinanced Loan |
|---|---|
| Balance: $20,000 | Balance: $20,000 |
| Interest Rate: 8.5% | Interest Rate: 5.5% |
| Term: 60 months | Term: 60 months |
| Monthly Payment: $387.67 | Monthly Payment: $329.17 |
| Total Interest: $5,254.20 | Total Interest: $3,178.20 |
In this example, refinancing saves you $2,076 over the life of the loan and reduces your monthly payment by $58.50.
Frequently Asked Questions
How long does it take to refinance an auto loan?
The refinancing process typically takes 30 to 60 days, though some lenders may offer faster processing for approved applicants.
Can I refinance a car loan with bad credit?
It's more difficult to refinance with bad credit, but some specialty lenders may offer options. You may need to pay higher interest rates or fees.
What fees are associated with refinancing?
Common fees include application fees, origination fees, and closing costs. These can vary by lender and loan amount.