What is car loan refinancing?

Car loan refinancing means replacing your current car loan with a new one. If your circumstances have changed since you arranged your car loan, you may be able to refinance. This could be with the same lender you started with or a new one entirely. 

There are many reasons you might be looking to refinance, including:

  • lowering your interest rate
  • reducing your repayments
  • changing the length of your loan term
  • updating payment frequency
  • switching from variable to fixed rate

These changes can offer more flexibility and the ability to consolidate debt and simplify your finances. 

Why refinance with NAB?

Avoid fees

Don’t pay early repayment, exit or establishment fees.

Competitive rates

Get a tailored interest rate based on your personal circumstances.

Flexible loan terms

Choose a loan term that suits you.

Eligibility

To be eligible for refinancing, you’ll need to meet the following criteria:

  • You’re an existing personal NAB customer and registered for Internet Banking.

  • You’re 21 years or older.

  • The vehicle you purchase is eligible for a car loan if it’s a new or a used car up to 12 years old at the time of application (based on build date) and meets our other requirements.

  • You’re an Australian citizen, a New Zealand citizen or an Australian Permanent Resident.

What factors are important when refinancing?

There are also several factors that will contribute to you being granted a new loan.

Vehicle 

How old your car is and the condition it’s in will play a major role in whether you’ll qualify for refinancing. If it’s very old or has too many kilometres on the clock, it might not be eligible. Hybrid and electric vehicles may have particular loan terms, so keep this in mind. 

Credit score

A lender will likely review your credit score, which is based on your financial history, as part of the process. 

Loan-to-value ratio (LVR)  

An LVR is the amount of money you owe on a loan against the current value of your vehicle. A lower LVR means less risk for the lender. 

Steps to refinance a car loan

  1. Get your rate quote

  2. Submit your application

  3. Review and sign your contract

Check out our NAB Car Loan

We've partnered with Plenti to provide faster secured car loans with competitive rates, no exit fees, and a smart, paperless borrowing experience when buying or refinancing your car. Terms, conditions, other fees and charges apply. 

Get your rate quote on a secured loan in as little as one minute without impacting your credit score. Credit provided by NAB.

Available to existing NAB customers only.
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Tips for refinancing

  • Check for any costs that might apply if you leave your current loan, such as early exit fees or ongoing fees.
  • Ensure you have a good credit score by paying bills on time and keeping any credit card balances in check. Remember that refinancing several times in a short period can also impact your credit score negatively. 
  • Compare options from different lenders to make sure you find the right loan.
  • If you’re patient and keep an eye on the market, you could refinance when interest rates drop.

If you’re interested in refinancing a car loan, always consider your financial situation. If you’re not sure whether it’s the right option for you, you may wish to speak with a financial advisor. 

Looking to refinance other types of debt?

Learn more about unsecured personal loans and consolidating your debt.

Frequently asked questions

  • You can refinance your existing car loan from any lender to NAB. You can also refinance a balloon payment.

  • Getting a quote won’t affect your credit score, but a full application may involve a credit check.

  • NAB supports refinancing for used cars and offers a 0.75% discount for eligible EVs.

Helpful car purchase guides

Need some help buying a car? Read our tips and guides on purchasing a new or used vehicle.

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