The average auto loan rate sits at 6.84% for new vehicles and 11.93% for used per Experian Q4 2025, with the average balance at $40,851. Despite this, 67% of car owners per Bankrate have never refinanced their auto loan — leaving $1,500-$4,000 in potential savings untouched.
This guide covers when auto loan refinancing makes financial sense, the break-even calculation, credit score requirements by lender type, how to handle upside-down loans, dealer markup vs direct lender rate comparison, the impact on credit score from hard inquiries, and a step-by-step refinancing process.
Originally published on WealthWise OS.