5 Questions to Ask When Refinancing Your Car

You’ve probably heard that you can save money by refinancing your car loan. Still, you might be hesitant, especially if you’ve never gone through the refinancing process before. It’s surprisingly easy, but there are a few things to ask yourself first:

1. Do I know my current loan information?

You don’t necessarily need to know all of the details about your current auto loan in order to refinance.

But it can be helpful, especially if you’re making comparisons about how much refinancing can save you. In order to know your savings, you’d need to know how much your old loan cost you in terms of APR and monthly payment amount, compared to your new loan.

2. Do I have proper insurance for refinancing?

If you have a car loan, your lender also has a stake in that vehicle. And to make sure it’s protected, lenders generally require you to have insurance for your car.

Most lenders require comprehensive and collision insurance. They may also require a maximum deductible amount, such as $1,500 each. This ensures that no matter what happens to your car, it’s fully protected and you’re more likely to be able to afford the deductible.

3. Do I have add-ons that won’t transfer to my new loan?

Some auto loans come with optional add-ons, such as a GAP waiver (Guaranteed Asset Protection) that waives the remainder of the loan balance if you total your car. Or, maybe you paid for an extended warranty for your car.

If you paid for any of these additional features, it’s a good idea to check with your current providers to see whether they’ll transfer to your new loan or inquire about a refund upon cancellation. GAP waivers typically don’t transfer to your new loan, for example, while extended warranties do.

4. Do I have a valid registration or any red flags with the DMV?

When you refinance your auto loan, your state’s DMV will issue a new car title to your new lender. But in order for that to happen, your car registration needs to be valid and current. If you’ve let your car registration lapse, you’ll need to bring it current again before you can refinance.

Similarly, you’ll also need a clear title, with just your current auto lender listed. If you have other claims on the title, such as a tax lien for not paying your taxes, or a car title loan, then you’ll need to pay off these debts before your title is able to be switched to a new lender.

5. Am I up to date on car maintenance?

Making sure your car is in tip-top shape isn’t a requirement to refinance. You can still refinance your auto loan if there’s work you’ve been putting off.

But it’s generally a good idea to keep up with car maintenance when you can, and refinancing is an especially good time to make sure everything’s checked off your list.

This becomes even more important if you’re refinancing your loan for a longer period of time. The last thing you want is to be paying off a car loan for a vehicle that doesn’t even run anymore, and by taking care of your car today, you can ensure that doesn’t happen.

Shop around for the best rates

You have endless options when it comes to finding an auto refinance lender. If you decide refinancing might be right for you, it’s important to shop around and check your rates with several different lenders.

Checking your rate with most lenders won’t have any impact on your credit, as long as they do a “soft” credit pull. This gives you a good idea of what rate each lender can offer you, so you can decide whether it’s worth continuing your application.

Upstart Network, Inc. (NMLS #936133) is not a lender. All loans on its marketplace are made by regulated financial institutions.

All mortgage lending is conducted by Upstart Mortgage, LLC dba Upstart Home Lending. (NMLS #2443873). Equal Housing Opportunity.

Checking your rate won’t affect your credit score: When you check your rate, we check your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and proceed with your application, we do another (hard) credit inquiry that will impact your credit score. If you take out a loan, repayment information may be reported to the credit bureaus.
Upstart’s model considers education: Neither Upstart nor its lending partners have a minimum educational attainment requirement in order to be eligible for a loan.
41% more approvals and 33% lower rates than a traditional model: As of publication in April 2026, and based on a comparison between the Upstart model and a hypothetical traditional model using Upstart data from Jan – Dec 2025. For more information on the methodology behind this study, please see Upstart’s Annual Access to Credit results here.
Unsecured Loans: While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. There may be an option to secure your personal loan through Upstart with your vehicle, which will require a lien to be placed on the vehicle. It is important to review your promissory note for these details before accepting your loan.
Loan amounts from $1,000 -$75,000: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($1,500), MA ($7,000). Maximum loan amounts may vary by state.
Closing and funding timeline: In April 2026, 10% of funded HELOCs achieved a closing timeline of 2 days or less and a funding timeline of 7 days or less. This timeline assumes consumers close with our remote online notary, provide supporting documentation promptly, and ensure the information provided is accurate and consistent with our verification process. Delays, discrepancies, and other unforeseen factors may impact the closing timeline. MBA’s 2025 Home Lending Study reports an average industry closing time of 37 days.
APRs from 6.2% – 35.99%, with 3 or 5 year terms: The full range of available rates varies by state. The lowest rates are only available to the most qualified applicants. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 17.50% and a 7.25% origination fee of $725, for an APR of 21.23%. In this example, the borrower will receive $9275 and will make 60 monthly payments of $252. APR is calculated based on 5-year rates offered in March 2026. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
Instant deposits: To receive instant funding, your bank account must support instant transfers. If your account does not support instant transfers, funds will be available to you depending on your bank’s transaction processing time and policies.
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Cash Line draws: You may request a draw at any time. Only one draw may be outstanding at a time; after it is fully repaid, you may request another.
HELOC APRs as low as 6.52%: Terms shown here are subject to change without notice. APRs for initial advances range from 6.52% to 18.00% based on rates offered as of April 2026. The lowest rate is only available to consumers willing to become a member of a credit union and to those who meet a minimum FICO score of 780, CLTV under 70%, and DTI under 45%. Your actual rate will depend on many factors such as your credit history, combined loan-to-value ratio (CLTV), line amount, loan term, lien position, and property state. Origination fee to open an account is between 0% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal “Money Rates” table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.00%. Property insurance is required.
No annual fee, prepayment penalty, or fees to redraw: Terms shown here are subject to change without notice. Origination fee to open an account is between 0% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal “Money Rates” table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.00%. Property insurance is required.
2,500+ Variables:As of 3/31/2026. “Variables,” often also referred to as “features,” refers to raw variables and combined variables considered in our AI models. A “raw” variable is a non-combined, conceptually distinct unit of data, such as “applicant-reported savings.” A “combined” variable is data that has been transformed, combined, or otherwise engineered from a raw variable or set of raw variables, such as “applicant-reported savings” divided by “loan amount.
Fully automated loans: In Q2 2026. Percentage of Loans Fully Automated, which is defined as the total number of loans in a given period originated end-to-end (from initial rate request to final funding for personal loans and small dollar loans, and from initial rate request to signing of the loan agreement for auto loans) with no human involvement required by the Company divided by the Transaction Volume, Number of Loans in the same period.