You might already know that refinancing your mortgage can lower your monthly housing cost — but many people aren’t aware you can refinance an auto loan as well.
It’s not a frequently discussed money move, yet it can free up substantial cash. An online lender called Upstart is helping borrowers reduce their car payments by an average of $1,025 per year. That translates to roughly $4,800 returned to drivers over the life of their loan.*
Who wouldn’t welcome nearly $5,000 back in their account? It takes under six minutes to see your rate.
Ways to Trim Your Car Payment
Upstart operates as an online lending marketplace that simplifies refinancing an auto loan. There are no origination charges, the minimum FICO requirement is just 510, and its machine-learning approach is enabling more people to benefit from refinancing.
Traditional credit scoring can miss aspects of a borrower’s situation. Upstart’s AI evaluates risk using multiple variables, allowing it to approve a greater share of applicants compared with conventional underwriting techniques.
Many of Upstart’s auto refi loans are processed automatically with adaptable criteria and proprietary underwriting software. With an APR band from 2.20% to 29.99%,1 Upstart has assisted customers in saving millions on their car payments.2
Getting Started Is Simple
Upstart has helped drivers save more than $20 million on auto loans in the last year alone.
Checking your rate is quick and straightforward — just a few minutes. You don’t need to input your vehicle’s VIN, and you won’t be hit with spammy sales calls.
If you’re making monthly car payments, take a moment to check your rate and discover how much you could shave off your auto loan.
Also consider researching lantern auto refinance and options like upstart 50k one day to compare alternatives.
Note: The author name has been updated for this version.
*This estimate is calculated using data from consumers who were approved for an auto loan through Upstart and accepted their final terms. As of 3/1/2022, the average annual savings figure is $990. As of 1/1/22, borrowers who refinanced saved an average of $4,800 over the duration of their loans. These figures are not guaranteed. To determine potential savings on a loan you are considering, compare your current APR and remaining term to the APR and term offered through Upstart.
1 The available rate range varies by state. The average 5-year loan offered on Upstart will have an APR of 9.91% and 60 monthly payments of $426 per $20,000 borrowed. For instance, the total cost for a $20,000 loan would be $25,540. APR is calculated based on 5-year rates offered in the last month. There is no down payment and no prepayment penalty. Your APR will depend on your credit, income, and other information submitted in your application. Not all applicants will be approved.
2 This estimate is based on consumers approved for an auto loan through Upstart who accepted their final terms. As of 1/1/2022, total savings for all borrowers were $28.2 million. To evaluate potential savings on a loan you are considering refinancing, compare your current APR and remaining term to the APR and term offered through Upstart.
Car refinance loans are not available in IA, MD, NV, or WV. Car refinance loans in IL and MO are originated by Cross River Bank or Midwest BankCentre. Car refinance loans in CO, KS, and TX are originated by Cross River Bank or Rising Bank, Member FDIC. Car refinance loans in FL, GA, and AL are originated by Cross River Bank or Drummond Bank, Member FDIC. All other car refinance loans are originated by Cross River Bank, Member FDIC.
