When should I refinance a car loan?

There are no hard and fast rules, but when deciding if it’s the right time to refinance your car loan it’s important to know the interest rate and length of time that remains to pay off your current loan. Although a new loan may have a lower interest rate and/or lower monthly payments, refinancing for a longer time could end up costing you more overall. If you’re still wondering “How long can I wait to refinance my car?,” it’s less about timing and more about finding the monthly payment, rate and length of the new loan that could give you the most financial freedom.

What is a good auto refinance rate?

When considering refinance car loan rates, look for a new loan with a lower interest rate than what you currently have. You should also check if your current loan has a variable or fixed rate. Choosing a loan with a fixed rate, like a OneMain personal loan, has the benefit of staying the same so you don't have to worry about it rising in the future.

How do I need to get a OneMain auto refinance loan?

From the start of the application to receiving the funds could be as quick as one day.* Completing the online loan application: Takes just minutes to complete and see your offers.* Signing your loan documents: After final loan approval, signing your closing documents takes about 30-45 minutes. Receiving your funds: When using your debit card to receive funds, you can get your money as soon as an hour after signing the loan docs.3 Funds can also be paid out by direct deposit (ACH), which are available approximately 1-2 banking days after loan closing. A check can be issued as soon as the same day as the closing. *Timing may vary based on: when you submit your application, how many documents are needed for approval, and how long it takes for OneMain to receive, review, and verify those documents, and whether your loan is secured by collateral, among other factors.

How long does it take to get an auto refinance loan from OneMain?

When you refinance your car loan with a personal loan from OneMain, your credit score may take a small dip, as it might with any hard inquiry. Learn more about ways to help you build credit over time.

Does refinancing your auto loan hurt your credit?

If you're close to paying off your existing car loan, it may not be worth refinancing because the money you save in interest payments could be offset by fees associated with paying off the existing loan and/or opening your new loan. Also, if your vehicle is worth significantly less than when you originally bought it, it may not be worth refinancing.

How many times can you refinance a car?

There isn’t a legal limit on how many times you can refinance your car. However, refinancing may not always be beneficial. While refinancing may lower your interest rate or monthly payment, it could also lead to extra fees or end up costing more overall. As with any loan, it’s essential to weigh the pros and cons before deciding to refinance again.

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Auto Refinancing Loans

Shift gears with auto loan refinancing

Refinance your auto loan with a OneMain personal loan that fits your budget, helping you reach your financial goals today and miles down the road.¹

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This won’t affect your credit score.

What you get with every OneMain auto refinance loan

Money right when you need it

Quick decision. Money as fast as 1 hour after loan closing.²

Loans that work for your budget

Fixed payments and clear, upfront terms.

Support from start to finish

Real people in branches, on the phone and ready to help online.

Auto loan refinancing as smooth as the open road

Love your car, but not your current auto loan? Depending on your current loan terms, refinancing could change the duration of your loan, lower your interest rate or reduce your monthly payment — freeing up money for other expenses.¹,³

See if you are prequalified for a personal loan to refinance your vehicle loan, from $1,500 - $35,000.¹

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Checking won’t affect your credit score.

What is an auto refinance loan?

Refinancing your car or truck means taking out a new loan to pay off your current auto loan. If you choose to refinance, you may benefit from new terms like a lower monthly payment, a reduced interest rate or a different length of repayment.

Why should I choose OneMain to refinance my auto loan?

Your loan needs to work for you, both now and later. That’s why we offer a fixed interest rate and fixed monthly payments, so you know exactly what to expect. Plus, you’ll have a set final payoff date for the loan. We also arm you with money-saving tools and credit tips that may help you manage your finances and build your credit for a stronger future.

See how you can stretch your budget with a personal loan

Whether you need to cover car repairs, vet visits, dream getaways, or just want to breathe a little easier with debt consolidation, our personal loans are built to fit your needs.^3,4

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Customers have relied on OneMain for over 100 years

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Need more info on auto refinance loans? You’ve come to the right place:

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When Should I Refinance My Car?

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Pros and Cons of Refinancing a Car

Learn whether you can transfer a car loan to someone else and what steps are involved.

Can You Transfer a Car Loan to Someone Else?

Answers to common customer questions

Refinancing a car loan is less about timing and more about whether a new loan can save you money or better fit your budget. If you can get a lower interest rate, lower your monthly payment or choose a loan term that works better for your finances, refinancing may be worth considering.

Before you decide, check your current interest rate and how much time is left on your loan. While refinancing can lower your rate or monthly payment, extending the loan term could mean paying more in interest over time. The best refinance option helps you meet your financial goals without increasing the overall cost of your loan.

When refinancing an auto loan, it’s a good idea to look for a new interest rate that’s lower than the one you’re currently paying. A lower interest rate can help reduce your monthly payment and may save you money over the life of the loan.

It’s also important to understand whether your current loan has a fixed or variable interest rate. With a fixed-rate loan, your interest rate stays the same for the entire loan term, making your monthly payments more predictable and easier to budget for. A variable-rate loan’s interest rate can change over time, which may cause your payments to increase. Choosing a fixed-rate loan, such as a OneMain personal loan, can provide more certainty and help you plan your finances with confidence.

Here are a few things that affect your eligibility:

Credit history
Income and expenses
Loan purpose⁴
State of residence

To get your OneMain loan, you will need to provide the following:

Proof of identity (such as a driver’s license, state-issued ID card, passport or available third-party verification service)
Proof of residence (such as a driver’s license with current address, utility bill or signed lease)
Proof of income (such as pay stubs or tax returns)

We may ask for more info based on your situation. Take the next step and start your loan application today.

Here are some of the fees you can expect to see, depending on your loan terms, the state where you open your loan and whether you’re up to date on payments.

Origination fee:

A one-time fee for processing an application and setting up the loan.

This fee could either be a flat amount, ranging from $25 to $500, or a percentage of the loan amount, ranging from 1% to 10%. Some states may set limits on the maximum fee that may be charged. Additionally, in some states, OneMain may limit these fees, even when state law may allow us to charge more.

Late payment fees:

Fees applied when payments are made after the contractual payment due date any applicable payment grace period.

This fee can either be a flat amount, ranging from $5 to $30 per late payment, a percentage of your entire monthly payment amount or a percentage of the delinquent portion of your monthly payment amount, ranging from 1.5% to 15%.

Fees are subject to certain state limits.

Non-sufficient funds (NSF) fees:

If a payment made by check or electronic ACH transfer is returned because there are not enough funds in your account, you may be charged a non-sufficient funds (NSF) fee.

Depending on state laws, these fees typically range from $10 to $50 per returned payment. Keeping enough money in your account to cover scheduled payments can help you avoid these additional charges and keep your loan on track. Fees are subject to applicable state limits.

Government fees:

In some cases, government fees may apply to your loan. For example, if your vehicle is used as collateral for a secured loan, a fee may be required to add OneMain as a lienholder on the vehicle title. In that situation, you are responsible for reimbursing the amount charged by the state or county to record the lien. The exact fee varies by location and may change over time based on applicable laws and regulations. Be sure to review your loan agreement carefully for details about any fees that may apply. If you have questions, our loan specialists are here to help. Just find a branch near you and let’s talk.

The time it takes to refinance an auto loan with OneMain can vary, but in some cases, you may receive your funds as soon as one day after completing the loan process. Timing depends on factors such as when you apply, the information and documents needed to process your application, how quickly those documents can be verified and whether your loan is secured by collateral. The steps below outline some of what you may expect during the process.