Car Loan Refinance Australia
Refinance Your Car Loan & Take Control of Your Repayments
Replace your existing car loan with a new loan that may offer a lower interest rate, lower repayments or a better loan term.
iCREDIT compares car loan refinance options from our panel of lenders so you can make an informed decision.
Compare multiple lenders
Lower repayments
Better interest rates
Different loan terms
Australia-wide service
Obligation free
Compare options first - no formal lender application is submitted just by requesting an iCREDIT comparison
What Is Car Loan Refinancing?
Car loan refinancing involves taking out a new loan to pay out your existing car finance.
Instead of continuing with your current lender and loan structure, you may be able to move the outstanding balance to another lender offering terms that better suit your current circumstances.
A refinance does not automatically mean you will save money. The interest rate, comparison rate, establishment fees, payout costs, remaining loan term and total amount repayable should all be considered when comparing your existing loan with a potential replacement.
iCREDIT can help you compare these factors before you decide whether to proceed.
Get your free refinance comparison
Loan Refinance - 2026
Why Australians Refinance Their Car Loan
Lower Interest Rates
Lower Monthly Repayments
Change Loan Term
Switch to Another Lenders
Better Suit To Your Current Needs
Car Loan Refinance Savings Calculator
Compare your existing car loan with a proposed refinance option, including relevant fees and the effect of changing the loan term.
Current loan
Proposed refinance
Repayment comparison
How to Refinance a Car Loan
Step 1
- Review Your Existing Loan - Know your current balance, rate, repayments, term and payout figure.
Step 2
- Tell Us Your Goal - Lower repayments, better rate, shorter term or switch lenders - we'll find options.
Step 3
Compare Refinance Options - We Compare suitable options from our lender panel based on your needs.
Step 4
- Review & Compare - Compare the total cost , not just the interest rate or monthly repayment.
Step 5
- Complete The Refinance - Once approved, your existing loan is paid out and replaced with the new loan.
When Is It Worth Refinancing a Car Loan?
Refinancing a car loan may be worthwhile when a new loan could reduce your borrowing costs, improve your cash flow, or better suit your current financial position. However, a lower advertised interest rate does not automatically mean you will save money. Before switching, compare the new loan’s interest rate, comparison rate, fees, remaining term and total amount repayable against your existing car loan.
You may benefit from refinancing if:
- Interest rates have fallen since you took out your current car loan.
- Your credit profile has improved, potentially giving you access to more competitive loan options.
- Your current repayment is putting pressure on your budget and you want to explore a different repayment structure.
- Your existing loan has high fees, a balloon payment or restrictive conditions that no longer suit you.
- You want to consolidate eligible debts, subject to lender criteria and whether this reduces your overall borrowing costs.
- Your car was originally financed through a dealership and you want to compare the loan against options from other lenders.
Refinancing is generally most valuable when the expected interest savings exceed any payout fees, establishment costs and ongoing charges. Extending the loan term may reduce your regular repayment, but it can also increase the total interest paid. Compare the complete cost of both loans before deciding.
Current Car Loan vs Proposed Refinance
| Loan detail | Current Loan | Proposed Refinance |
|---|---|---|
| Interest rate | 12.95% p.a. | 8.49% p.a. |
| Comparison rate | Unknown | To be confirmed |
| Remaining term | 4 years | 4 years |
| Estimated monthly repayment | $600.00 | $551.67 |
| Monthly repayment reduction | — | $48.33 |
| Payout or early termination fee | $0 | — |
| New lender fees | — | $500.00 |
| Estimated remaining interest | $6,414.18 | $4,094.19 |
| Total remaining repayments | $28,800.00 | $26,480.00 |
| Total cost including refinance fee | $28,800.00 | $26,980.00 |
| Estimated total saving | — | $1,820.00 |
Potential Car Loan Refinance Saving
Based on an estimated current payout balance of $22,385.82, refinancing from 12.95% p.a. to 8.49% p.a. over the same four-year term could reduce the estimated monthly repayment from $600 to $551.67.
This represents a repayment reduction of approximately $48.33 per month. After including the proposed lender’s $500 establishment fee, the estimated net saving would be approximately $1,820 over four years, or an average of $37.92 per month.
These calculations are estimates based on the figures provided. Actual repayments and savings will depend on the current lender’s formal payout figure, the approved interest and comparison rates, repayment frequency, fees and the new lender’s calculation method.
Can I Refinance My Car Loan With Another Lender?
Yes, you can refinance a car loan with another lender if you meet the new lender’s eligibility and credit requirements. The new loan is generally used to pay the outstanding balance with your current lender, after which you make repayments to the new lender under the agreed interest rate, fees and loan term.
Changing lenders may be worth considering when another car loan offers:
A lower interest or comparison rate
Lower monthly repayments
Reduced ongoing fees
A more suitable loan term
Better repayment flexibility
The option to remove or restructure a balloon payment
Before refinancing, request a formal payout figure from your existing lender. This figure may include the outstanding balance, accrued interest and any early repayment or loan termination fees.
You should then compare the proposed loan’s repayments, establishment fees, ongoing charges, total interest and total amount repayable. A lower repayment does not always mean a cheaper loan—particularly if the new lender extends the term.
Eligibility will usually depend on your income, employment, credit history, current loan conduct, vehicle age, vehicle value and the amount still owing. If the payout balance is higher than the vehicle’s value, your refinance options may be more limited.
iCREDIT can help eligible borrowers compare car loan refinance options across a panel of Australian lenders without requiring multiple separate lender enquiries.
Can I Refinance a Used Car Loan?
Yes, you can refinance a used car loan with another lender, subject to the vehicle and borrower meeting the lender’s eligibility requirements. Refinancing replaces your existing car loan with a new loan, which is used to pay the current lender’s confirmed payout amount.
Refinancing a used car loan may be worth considering if you want to:
Secure a lower interest rate or comparison rate
Reduce your regular repayments
Replace a high-fee or unsuitable loan
Change the remaining loan term
Remove or restructure a balloon payment
Access more flexible repayment features
Lenders commonly assess the used car’s age, condition, current market value and expected age at the end of the proposed loan term. They will also consider the outstanding payout balance, your income, employment, credit profile and repayment history.
If you owe more than the vehicle’s current value, refinancing may be more difficult. Some lenders may require you to contribute funds to reduce the difference, while others may decline the application or offer an unsecured loan at a higher rate.
Before switching lenders, compare the new repayment, refinance fees, total interest and total amount repayable with the remaining cost of your current loan. Extending the term may lower the monthly repayment but increase the overall loan cost.
iCREDIT can help eligible customers compare used car loan refinance options from a panel of Australian lenders.
Why Compare with iCREDIT?
Compare Multiple Lenders
We compare options from our panel of accredited lenders.
Understand The Complete Loan Cost
We look at rates, fees, repayments and total cost - not just the headline rate.
Personalised Comparison
We match options to your goals, circumstances and vehicle.
Australia-Wide Assistance
We assist eligible borrowers across Australia.
Experienced Finance Brokerage
Trusted by Australians Since 2012
Car Loan Refinance FAQ’s
It means replacing your existing loan with a new one that may offer different rates, terms or repayment options.
Options may still be available depending on your current situation and lender criteria.
A formal application may involve a credit check, but initial comparisons do not.
In some cases, extending the loan term may reduce repayments.
It depends on your current loan, interest rate, fees and financial goals.
Timeframes vary, but many applications can be processed within a few days once documents are provided.
Some lenders may offer internal refinancing options, depending on your loan.
There may be payout fees on your current loan and setup fees for the new loan.
View all FAQ’s ->
Trusted by Australians, helping borrowers find competitive rates and suitable finance options
CUSTOMER REVIEWS
Easy to contact and made everything seem so easy
I wanted to take a moment to express my sincere appreciation for your invaluable assistance in helping me navigate the complexities of car warranties. Your expertise and dedication made the entire process smooth and stress-free.
Your thorough understanding of the various warranty options available ensured that I could make an informed decision that best suited my needs. Your patience in answering all my questions and clarifying any doubts reassured me every step of the way.
Moreover, your commitment to providing personalized support and going above and beyond to address any concerns truly sets you apart. Your professionalism and attention to detail are commendable, and I am grateful for your unwavering support throughout the entire process.
Thanks to your guidance, I now have the peace of mind knowing that my car is protected by a comprehensive warranty that meets all my requirements. Your dedication to customer satisfaction is evident, and I have no hesitation in recommending your services to anyone in need of expert advice on car warranties.
Once again, thank you, Scott, for your exceptional assistance. I look forward to working with you again in the future and will not hesitate to reach out whenever I need assistance with any financial matters.
Best regards,
SID
Customer Reviews
What Lenders Look At When Refinancing
Every lender assesses applications differently, but common factors include:
Loan Eligibility Criteria
- Current Loan Balance
- Vehicle Age & Value
- Credit History
- Income & Employment
- Repayment History
- Overall Financial Position
To help you find the right loan faster, explore:
Business Car Loans
Electric / PHEV Loans
Ready to Compare Your Car Loan Refinance Options?
There’s no obligation to proceed. Compare first and decide what’s right for you.
