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:
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
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Get your rate quote
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Submit your application
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Review and sign your contract

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.
Frequently asked questions
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You can refinance your existing car loan from any lender to NAB. You can also refinance a balloon payment.
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Getting a quote won’t affect your credit score, but a full application may involve a credit check.
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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.
How to get a car loan
Learn about our secured and unsecured car loans, and how to get approved so you can get behind the wheel sooner.
How to finance your new car
Learn if a car loan, dealer finance or leasing is the right option for your new car.
The real cost of buying a car
We’ll help you uncover the hidden costs of buying a car.
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