Yes, refinancing an auto loan may be a good idea. If you obtain a lower interest rate you can save more money in interest charges in the long run - up to $1250 every year*! If you took your current auto loan from a bank or dealership, you might be stuck with high monthly payments.

However, after a few months of making on-time monthly payments, your financial standing might’ve improved. You may be able to take advantage of this to refinance your car loan and score a lower APR and lower monthly payments.

While you can apply at banks, credit unions, and other financial institutions for good refinance loans, it can be tiresome to visit each of them in person (or visit each website) and inquire about your options. It may be easier and more efficient to use an online refinance platform that shows you offers from multiple online lenders at once!

LoanShield will work with a network of lenders to get you the best offers in just a few clicks. You can compare rates from multiple lenders, choose favorable terms and conditions (like co-borrowers, auto payments, etc.), and even get cash-out refinancing for immediate expenses.

Before approving you for auto refinancing, your lender will do a hard credit pull to see what APR and offer you qualify for, which may temporarily reduce your credit score by a few points. However, once approved, you can easily improve your credit score by being consistent in the monthly car loan payments.

A down payment is not mandatory for you to refinance your car loan. However, if you have poor credit, you may want to make a down payment to get a lower APR than your current one.

You can refinance an auto loan in many situations, including the following examples:

Checking your rate with LoanShield will not affect your credit score. When you check your rate, we make a "soft credit inquiry." Soft credit inquiries on your report do not lower your credit score, but you may see when you view your report that this inquiry was made. So go ahead, check it out and see what you can be saving.

If you do proceed with your application after receiving a rate, your credit score may be impacted. If you are offered a loan and proceed with the application, a "hard credit inquiry" will be completed to verify the accuracy of your application. This action will be recorded as an inquiry on your report and it may impact your credit score.

You have a simple interest loan. This means interest is accrued daily from the day the loan is signed until the day it’s paid off or the loan is matured, whichever is earlier. Interest accrual is based on your principal, interest rate and the number of days in the year. We collect the interest accrued from payment to payment. Please keep in mind that principal payments do not move your due date forward or stop the interest from accruing daily. They will help you pay down your loan balance which, in turn, helps reduce the amount of interest you pay.

Yes. Your purchase loan approval and interest rate are locked in for 30 calendar days from the date of your original loan submission, which means you know before you shop exactly how much car you can afford.

You may be asked to provide documents that verify your identity, education, and income. We may also ask for a copy of your registration card or proof of insurance.

If your car has a co-owner, the co-owner will need to sign and return a consent form within five days of application approval. And if we learn of any open claims or second liens on your vehicle, we may request proof of resolution.

Any documents we need to process your application, along with their descriptions, will appear on your Upstart dashboard after you submit your application.

Refinancing a car loan with bad credit can be challenging but not impossible. However, it often comes with high-interest rates and hefty fees on the new loan. So, how low can your credit score go to refinance? While a FICO score under 580 or a VantageScore below 600 is considered “poor credit,” some lenders may still approve refinancing with a score as low as 460. The downside? You could face exorbitant rates from predatory lenders, making it harder to keep up with payments and increasing the risk of falling behind.

Auto loan rates are impacted primarily by your credit history, current debt, and income. They’re also affected by whether the loan is secured. Traditional auto loans that require the vehicle as collateral typically have lower interest rates than unsecured loans, like most personal loans, that don’t require collateral. However, if you miss payments on a secured loan, your car may be repossessed. If you miss payments on an unsecured loan, the lender cannot claim your car as collateral.

Your monthly payment will be determined by several factors, including your loan amount, term and interest rate.

A lease buyout allows a lessee (you) to purchase and keep their leased car. If you finance this purchase with a lease buyout loan, you’ll keep driving and making monthly (loan) payments on the vehicle, without worrying about mileage limits or wear-and-tear.

If you like your leased car and don’t want to let it go, a lease buyout can be a great deal on a “used” car that you’re already familiar with.

Your leased vehicle will be considered "paid off" once you have fulfilled all lease obligations, including any remaining lease payments and fees. The exact timing depends on your lease agreement and payment schedule.

The duration of the lease end process can vary depending on several factors, including the leasing company's procedures and the condition of your vehicle. Typically, it may take a few weeks to complete the necessary paperwork and inspections.

During the lease term, the leasing company retains ownership of the vehicle. However, you are responsible for its care, maintenance, and any lease-related obligations.

Yes, you can choose to buy out your lease by paying the full remaining balance in cash. However, it's essential to consider the impact on your credit score, as early lease terminations or large cash transactions may affect your credit profile. We recommend consulting with our auto loan agents at LoanShield to explore the best options for your situation.