Good reasons to refinance now
- Your credit score has climbed since you financed, and you are still paying a subprime or mid-prime rate.
- Market rates have fallen since your loan started.
- You need a lower payment after a change in income, and you still have years left on the term.
- You want a co-signer released now that you qualify independently.
- You want to shorten the term and pay the vehicle off sooner.
Reasons to wait
- You have less than a year left on the loan.
- Your current lender charges a payoff penalty larger than the first year of savings.
- You owe substantially more than the vehicle is worth and cannot cover the gap.
How to do it
Apply online with your VIN and current balance, review the offer against your existing loan, and sign electronically if the total cost is lower. There is no obligation at any stage and no cost to see your options.
How the refinancing process works
Refinancing is not a sale and it is not a new purchase. Your current lender is paid out in full, a new loan is registered against the vehicle you already own, and your payments restart on the new terms.
- Apply online with your VIN, the vehicle details and a rough idea of your current loan balance.
- Your finance manager requests a payout statement from your current lender.
- Documents arrive by DocuSign. Review the rate, term and payment, then sign from home.
- The old loan is paid out, the new loan begins, and your payment drops to the new amount.
What to watch for before you sign
A lower payment is not automatically a lower cost. Check these four things before you agree to new terms.
- The full cost of borrowing, not just the monthly payment: a longer term can lower the payment and raise the total interest.
- Payout penalties on your current loan, such as an early payoff fee or a discharge administration charge.
- Lender fees rolled into the new balance, which quietly increase what you owe.
- The vehicle value against your balance. If you owe far more than the car is worth, refinancing may not be approved without extra down payment.
Save thousands
Save thousands by refinancing your vehicle anywhere in Canada.
Free to apply, no obligation, and no credit check to pre-qualify.
Frequently asked questions
Most lenders want to see a few months of payment history on the current loan. Some will consider a refinance sooner if the loan was arranged at a very high rate.
Usually not, unless your credit improved enough to offset the market move, or you need a specific change such as removing a co-signer.
You can choose a longer term, which lowers the payment, but you should plan to shorten it or pay extra later to avoid paying more interest overall.