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REFINANCE CAR LOAN
Refinancing your Car Loan?
There are a few key reasons why you should consider refinancing your existing car loan or car lease:
  • The Residual Value or Balloon Payment for an existing loan or lease is falling due;
  • Your financial position has changed; or
  • You're looking for a better deal.
Why you should consider refinancing your car loan
A lot has probably changed since you last financed your car loan or car lease through AFS, both in the finance market and in your personal life.
In the finance industry, interest rates have drifted lower and competition for your business has intensified.
From a personal perspective, you may have changed job or moved house, had children, and either increased or reduced debt.
All of these factors impact your financial position, which is why it's important to regularly review your circumstances to maximise the value of every dollar you earn.
There are a number of benefits associated with refinancing your loan, including the ability to reduce your repayments, refinance a balloon payment that's fallen due on manageable terms, or even upgrade into a better vehicle.
Don't hesitate about exploring the available options with your current lender and if your still not happy you can always sign up with a new lender of your choice.
 

Refinance Car Loan Essentials

6.95%

Fixed Rate Car Loan for a new car* (Comparison Rate 8.22% pa^)

  • Borrow between $5,000 to $100,000 for a new car
  • A great interest rate: Compare us to your bank
  • Fixed interest rate for the life of the loan
  • Pay as frequently as you like: weekly, fortnightly or monthly
  • Choose a term from one to five years. Seven year terms on request only
  • Make extra payments when you like
  • Ability to purchase your new car from any car dealer, so you can shop around for the best deal
  • Reduce your repayments by incorporating a balloon payment at the end of the term

* Interest rate only applicable for new goods that have not been pre-owned and where the applicant has an established good credit history. Finance subject to approval, including the application of applicable lending criteria. Terms and Conditions apply. Fees and Charges are payable. Interest rates vary depending on the applicants credit score and associated risks. Credit provider is Automotive Financial Services – Australian credit licence 383762. ^Comparison rate for AFS Loan Contract and Mortgage is calculated on a loan amount of $30,000 secured over a term of 5 years based on monthly repayments. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. 

Fixed Rate Loan

from
6.95%
p.a* 

Interest Rate
from
8.22%
p.a^

Comparison Rate

1–5
years

Loan Term
$5,000
to
$100,000

Loan Amount
Weekly
Fortnightly
Monthly
Repayment Frequency

Fees

Fees that will apply on settlement

The following upfront credit fees and charges are payable to AFS on the settlement date of the loan.  They are only payable if you proceed with the loan and are included in the amount of credit

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FEE TYPE DEFINITION AMOUNT
Establishment Fee Represents the reasonable cost for AFS to peovide credit to you $395
Credit Search Fee Represents the reasonable cost for AFS to conduct the necessary credit bureau searches per applicant $6.37
Security Registration Fee Represents the reasonable cost for AFS to register our financial interest in the goods $8

The following credit fees and charges are payable to AFS during the term of the loan.

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FEE TYPE DEFINITION AMOUNT
Monthly Administration Fee Represents the reasonable monthly cost for AFS to administer your loan whilst active $10

The following credit fees and charges may become payable to AFS during the term of the loan.

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FEE TYPE DEFINITION AMOUNT
Early
Termination Fee **
Represents the fee that will be payable when you pay out your loan contract in full before the expiration of the term of the loan. The amount of the fee as at the disclosure date if $600 and thereafter the amount of the fee is $600 multiplied by the number of unexpired whole months in the term of the loan at the time this contract is paid out and divided by the number of whole months in the the term of the loan $600 reducing monthly
Dishonour Fee Represents the reasonable cost for AFS to process the dishonour of a loan repayment on each occasion $12
Repayment Book Fee Represents the reasonable cost for AFS to generate and issue a new repayment book on each occassion $35

Fees and Charges disclosed above are current as at 1st July 2016 but may change from time to time. Other fees and charges may be payable. Please review the credit fees and charges detailed in the pre-contractual statement for the specific loan that you have chosen.

* Finance subject to approval, including the application of applicable lending criteria. Terms and Conditions apply. Fees and Charges are payable. Credit provider is Automotive Financial Services – Australian credit licence 383762. ^Comparison rate for AFS Loan Contract and Mortgage is calculated on a loan amount of $30,000 secured over a term of 5 years based on monthly repayments. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

** Only applicable for the AFS Loan Contract & Mortgage product. Please read the relevant product Terms & Conditions and pre-contractual statement (if applicable) if you are considering another loan product or lease.

~ If you use a licensed finance broker to assist you apply for credit there may be other fees and charges payable, such as a Finance Broker Fee or Origination Fee. AFS enables you to finance an Origination Fee as part of the Amount of Credit up to a maximum value of $990 including GST. An Origination Fee represents the finance broker's fee to provide credit assistance to you. It is a one off fee that is only payable if you proceed with the suggested credit contract. Under the National Credit Code, a Finance Broker is required to give you their Credit Guide, a Credit Quote and, at the same time as providing credit assistance to you, give you a Credit Proposal Disclosure document which will detail all the fees and charges payable and if any commission will be received by the finance broker.

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Applying for a car loan online is fast and easy with AFS.

What's more there are no fees or charges payable to apply, even if you're approved!. Fees and charges are only payable if you decide to proceed with the loan and these can be financed.

Simply select any "Apply Now" button to get underway.

What to expect

STEP 1

Allow 10 minutes to complete your application online


STEP 2

Once you have submitted the application, you will receive an email notification advising you that we have receive your application and commenced the assessment process


STEP 3

You will also receive a number of disclosure documents by email. Please read these and save them for future record


STEP 4

We will respond to you within 2 working days:

  • To advise you of the application outcome once we have assessed your application and  verified all the information you have supplied
  • To obtain further information in order for us to complete processing your loan

STEP 5

If you don’t have all the information you need you can save a partially completed application and return to it, within 14 days, to complete the required information. We will issue you a secure login and password to the email address you supply us.


More about Refinancing your Car Loan

Why should I refinance?

We all want to maximise the value of our household or business income. Consider the following benefits below:

  • Reduce your existing repayments - A lower rate, less fees and more favourable term can achieve this goal;
  • Refinance a residual value or balloon that's fallen due on more favourable terms;
  • Restructure your finances to suit your changed circumstances
  • Upgrade your vehicle - take advantage of the low interest rate environment to not only refinance but to also upgrade your car.

To refinance your existing car loan or lease, simply contact your existing lender and explore the available options.

At AFS, we will ask you questions about the purpose of refinancing and what you are trying to achieve. When considering a request to refinance, we are required to ensure that you are no worse off and our credit scoring model will adjust your interest rate to reflect the timely repayments made on the existing loan and your new circumstances.

In most circumstances, refinancing your car loan will result in reduced repayments and could save you valuable dollars which can be used to pay down your loan or spent elsewhere.

Do I need to refinance with the same bank or finance company?

No. You can not be forced into refinancing with the same lender.

However, as your existing lender already has your details on file and your repayment history, the simplest solution is often to renew terms with your existing financial institution.

At AFS, we value each and every one of our customers and our friendly staff will gladly assist you to understand if refinancing your car loan can save you money and they will arrange the whole process for you. Alternatively you can also use your finance broker who can act as your agent.

What to look out for when you refinance car loans

Many borrowers focus solely on the interest rate to be charged on the new loan.

However, many could be caught unaware that, by refinancing, they may actually be paying more interest overall. This is due to the additional interest being added on top of the first loan,particularly if the new loan is for an extended period beyond the initial loan term, as well as also refinancing the early exit costs and new setup costs on the refinance.

Having said this, and despite the total interest payable potentially being higher, the monthly loan repayments are likely to be lower.

What to do when your Balloon is due

Including a Balloon Payment or Residual Value in your loan or lease can be a good idea to lower your monthly repayments and enable you to purchase a better car.

As your car loan approaches maturity you need to decide between the following options that are available to you:

    • Payout your Balloon Payment in full
    • Trade in the car for a new one, getting a new loan or lease and Balloon Payment
    • Refinance the Balloon Payment and keep your current car

Refinancing a Balloon Payment or Residual is available on the same terms as those for any new or used car and the interest rate will be based on your updated credit profile.

Your original Balloon Payment or Residual can be anywhere from 0%-55% of the purchase price, depending on the term, which you can refinance over another 1-5 years. You can also choose to structure the new loan or lease to incorporate a new Balloon Repayment if you wish.

At AFS, we are happy to assess any request to refinance your loan before the Balloon Payment is due. Ideally, we'd like to get things underway a few months prior to the Balloon falling due, giving you plenty of time to search for your new car.