Refinancing Your Car Loan: When and How to Do It
There are many reasons you might want to refinance your Car Loan. In this article we explore what Car Loan refinancing involves and explore in detail when you should consider it and how to refinance your Car Loan in a few steps. Continue reading to find out more about Car Loan refinancing today.
What is Car Loan Refinancing?
Car Loan refinancing is the process when you swap your current Car Loan with a new one from another lender, usually with better terms. When you draw down the new Car Loan, it is used to pay off the existing loan and you then make repayments to pay off the new loan until the end of its term. People normally use refinancing to secure a lower interest rate, reduce monthly repayments or to either reduce or extend the loan term.
When to Refinance Your Car Loan
Refinancing your Car Loan may be worth considering under the following circumstances:
- Interest Rates Have Dropped
If market interest rates have decreased since you took out your original loan, refinancing can save you money. You may elect to choose a fixed rate such as an Avant Money Refinance Loan meaning you know exactly what you’ll repay each month.
- You Want Lower Monthly Payments
Consolidating your loans and choosing a new loan period could reduce your monthly repayments.
- You Want to Pay Off Your Loan Faster or Slower
Shortening the loan term can help you pay off the loan sooner and reduce the total interest paid. While if you want to have more discretionary spending at the end of each month, you may choose to extend the new loan and pay it off slower to reduce monthly repayments.
- Your Circumstances Have Changed
If your personal situation has changed you may wish to free up cash or set up repayments to suit your new needs by refinancing your Car Loan.
How to Refinance a Car Loan
If refinancing your Car Loan makes sense for your situation, then here are some steps on how to refinance your Car Loan and get started:
1. Review Your Current Car Loan Terms
- Always first check your existing Car Loans’ terms and conditions. They may feature penalties or fees triggered if you pay off your loan early.
- Note your remaining balance, interest rate, and monthly payments to compare with other lenders.
2. Calculate Savings and Costs
- Compare different Car Loan refinance rates from different lenders to find the best option for your situation.
- Will your monthly repayment be the same or lower if you refinance a loan?
- Online Car Loan refinance calculators will help you determine potential savings
Avant Money and Bankinter are now offering a fixed term deposit account that will help you grow your savings for any future purchases.
3. Apply for the New Car Loan
- Submit a loan application and provide all necessary documentation like proof of income, vehicle information, and your current loan details.
4. Review and Sign the New Car Loan Agreement
- Carefully read the terms and conditions of your car refinance loan before signing to ensure it matches your expectations and that you can afford the loan repayments.
5. Pay Off Your Existing Loan
- Once approved, the new Car Loan will be used to repay your existing loan.
6. Begin Making Payments Towards Your New Car Loan
- Once the loan refinance process is complete, you will then start to make payments towards your new loan at each agreed point in time. Set up automatic payments to avoid missing payments and maintain a good credit rating.
Refinance Your Car Loan Online With Avant Money
At Avant Money, we try our best to make refinancing your Car Loan as easy as possible with a fully online loan application process. With Avant Money loans, you can borrow from €5 to €75k at a repayment period from 12 months up to 120 months. Not to mention, Avant Money offers Ireland’s best fixed rate on personal loans over €30,000* at an APR of 6.7%. Interest rates are fixed, meaning the loan interest rate will stay the same over the entire repayment period. There are also no fees or charges if you want to repay the new loan in full earlier than expected. Visit refinance loans for further information.
If you are looking to treat yourself to a new car this year, take a look at our New Car Buyers Guide for some car buying tips.
*Rates and loan terms are correct as of 20th March 2026 and are subject to change (Source: CCPC.ie, not including Green Loans). The Maximum APR (Annual Percentage Rate) on all Avant Money loans is 19.9%. Minimum loan term is 12 months, and maximum term is 120 months. Loan terms vary depending on the purpose of the loan. Terms greater than 84 months up to a maximum of 120 months are only available for Refinance and Home Improvement loans of €20,000 to €75,000.
Representative example: On a €30,000 loan over 5 years, at a fixed rate of 6.5% (6.7% APR) you will pay €586.98 a month. The total cost of credit would be €5,219.07 and the total amount repayable would be €35,219.07.
Lending criteria, terms and conditions will apply. Personal Loans are available to residents of the Republic of Ireland over the age of 18 and are subject to repayment capacity and financial status. Proof of income and a credit reference agency search will be required to help us approve your request. Personal Loans are unsecured and not available for business purposes, house purchase or investment.
Our interest rates vary depending on the value of your loan and credit profile. We will assign you the appropriate interest rate once your application has been reviewed. To find out more about the loan values and applicable interest rates, check out our rate table at Avant Money Personal Loans.
Bankinter S.A., trading as Avant Money, is authorised by the Banco de España in Spain and is regulated by the Central Bank of Ireland for consumer protection rules.