Car Loan Refinancing — 11% to 5%
Refinancing from 11% to 5% — what you actually save
Monthly savings by loan balance
| Loan Balance | Old payment (11%) | New payment (5%) | Monthly savings | Total savings (60mo) |
|---|---|---|---|---|
| $10,000 | $217 | $189 | $29/mo | $1,723 |
| $15,000 | $326 | $283 | $43/mo | $2,584 |
| $20,000 | $435 | $377 | $57/mo | $3,445 |
| $25,000 | $544 | $472 | $72/mo | $4,307 |
| $30,000 | $652 | $566 | $86/mo | $5,168 |
| $35,000 | $761 | $660 | $100/mo | $6,029 |
| $40,000 | $870 | $755 | $115/mo | $6,891 |
60-month remaining term assumed. Actual savings depend on your balance and remaining months.
Is a 6% rate drop worth the paperwork?
At 6%, this is a refinance worth doing. Most lenders charge no fees on auto refinancing. Free application, 24-hour approval, and $72 back in your pocket every month. The only reason not to: if you are within 12 months of paying the loan off.
Who this refinance actually makes sense for
11% to 5% is a 6-point drop requiring dramatic credit improvement (60+ points) or a loan that was significantly mispriced at origination. Both scenarios exist in the 2022-2026 auto finance period.
If you can achieve 5%, take it. On a $20,000 balance with 48 months remaining, you are saving $75-85/month and $3,600-4,100 total. The life of this loan changes entirely.
6-point spreads typically indicate one of three things: the original loan was through a high-markup lender, the credit score has improved dramatically, or the rate environment has shifted significantly. All three occurred between 2022 and 2026.
Run your numbers
See your full Ownership Score with the new rate
Frequently Asked Questions — 11% to 5%
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