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Can I Refinance My Car with The Same Lender

Refinancing your car loan can offer numerous benefits. For example, it can deliver lower interest rates, change your loan’s timeline, or even get you more favorable monthly payments.

In this article, we will provide you with the resources to walk you through your options if you’re considering to refinance. Besides, we will answer any burning questions you might have concerning refinancing your vehicle loan, including, “When is it best to refinance my auto loan?” and, “Can I refinance my car with the same lender?”

Understanding what factors to consider when you want to refinance will help you secure a solid deal. You should re-do the rate shopping process to get a clear picture of what to expect. There are free resources that can help you do that, such as refinancing a car calculator tool.

Be sure to read on for more tips to help you secure the best car refinance rates when refinancing your car loan.

Can I Refinance My Car with The Same Lender

A simple answer to the question, “Can I refinance my car with my car with the same lender?” is yes. The initial cost of a refinance can be extensive. That’s why savvy car owners should shop around to establish if their existing lienholder has the best deal. Sadly, getting several estimates is the only way to know.

But using the same lender may not provide universal benefits to everyone who wants to refinance their auto loan. Perhaps your current APR is too high and you have an unbeatable offer from a different lender. Sticking with the same lender will mean losing out on substantial savings down the line.

To simplify your decision-making process, below are the advantages and disadvantages of refinancing with the current lender.

Should You Refinance Your Car with The Same Lender

Can I Refinance My Car with The Same Lender

“Should I find a new lienholder or can I refinance my car with the same lender?” These are common questions when you want to refinance your auto loan. You’re not limited to working with the financial institution that currently holds your car loan. Instead, your primary goal is to secure the most favorable terms for your loan. It implies finding someone who’ll offer you the lowest car refinance rates possible.

It might be your existing lender or a new one. Ultimately, comparing different rates will give you a wider scope of the market and how to determine a genuine deal. Therefore, when refinancing a car calculator tool will be helpful. Staying with the same lender may seem like an easy option.

However, other lenders willing to refinance your auto loan will do everything to make the process as straightforward as possible. So, you don’t have to worry that switching to a new lienholder will complicate your loan journey.

But it’s best to know the right time to refinance your auto loan. Keep following as we answer that in the next section.

Is Refinancing a Car Loan Worth It

Refinancing, whether it is a personal loan, auto loan, or mortgage means applying for a fresh loan to offset an old debt. It may sound like a laborious process on paper. Besides, it comes with some legwork. You may also have additional costs like early termination fees on your previous loan.

However, refinancing your auto loan can also give you access to significant perks that are worth considering. Therefore, it is best to consider refinancing if you fit one of the criteria below:

1. Unlock lower interest rates

The obvious reason to refinance your vehicle loan is to get access to a lower APR. The higher your annual percentage rate, the more money your loan will cost. Moreover, lower interest can shave off money on your monthly payments.

A reduced expenditure can free you up to save more or use the monies for other needs. Several factors play out to determine your car refinance rates. The most common include:

  • Your credit score.
  • Loan term.
  • Income.
  • Loan amount.

You may qualify for a lower interest rate relative to your current loan if any of the above factors change.

2. You are having trouble keeping up with your monthly payment

The change in economic situations can be so unpredictable. Perhaps you secured a vehicle loan that you could afford at that time. However, you’re now facing challenges managing your monthly payments.

Consider talking to your lender if you’re in this predicament, to see if you’re eligible for lower payments if you refinance with them. Don’t worry if your credit rating or income can’t get you a lower interest rate. You can still modify your loan term, potentially reducing how much you owe monthly.

3. You are looking to change the terms of your loan

Refinancing your auto loan to lengthen the term can lower your premiums. Although doing that might mean paying more APR, effectively increasing the total amount over the loan’s lifetime.

Obtaining a shorter loan term is another common refinancing reason. In this case, you will pay less on the loan during its lifespan. Consequently, you will be free and clear on your vehicle loan faster. The option is particularly great when you have additional cash flow and plan to clear your vehicle sooner without suffering early termination fees. 

4. Your car is nearing a mileage or age restriction

You may also want to refinance an auto loan for reasons of practicality. The majority of lenders apply mileage and age restrictions on refinancing a car loan. You might have trouble finding a lender willing to refinance your loan if the vehicle is older than seven or ten years, and has over 100k miles. Start investigating refinancing options if you’re are nearing one of the milestones before it’s late.

However, these are not the only scenarios where you can refinance. Keep in mind that depending on personal circumstances, there are plenty more situations where refinancing can be beneficial to you. And that’s why rate shopping is also vital.

Benefits of Rate Shopping When Refinancing with The Same Lender

Maybe you’ve been considering refinancing your bad credit vehicle loan, and are wondering, “Can I refinance my car with the same lender?” and, “How will I benefit if I did that?” The good news is that you work with your current lender. But we also encourage you to apply with several new lenders to help compare market offers.

The reason is that you may land a more favorable deal with a new lender. You may want to use one of the free refinancing car calculator tools to help you compare different quotes.

You probably know that refinancing an auto loan is replacing the existing debt with a fresh one, resulting in updated terms. Remember you’re looking for a better APR than you secured when you first took out the loan.

You should consider refinancing if you took out a bad credit auto loan and your FICO ratings have improved. As we said, you could use your existing lender. Even so, you could be missing out on a solid refinancing deal if you do not rate-shop first.

Shopping around allows you to match various refinancing offers. Just because your lienholder has an appealing deal doesn’t mean you have to settle for that. You could obtain a better offering elsewhere. Besides, your current lender might want to match the best offer you can get with a competitor.

However, we recommend that you decide within 14 days when rate shopping to prevent hard inquiries from damaging your score. Moreover, it’s vital to research what APR your credit scoring range could get. Seeing what other auto owners in similar conditions are receiving will help you know what to expect.

Pros and Cons of Refinancing a Car With The Same Lender


You’ve probably established a solid relationship with your current lender. It means they know your payments’ track record. You could unlock special rates or discounts, particularly if you have a record of paying on time and stellar credit.

Here are some potential benefits of refinancing with your current lender:

  • Enjoy a quicker and easier process: Your existing lienholder knows your history and your info is already in their system. 
  • Shave off some closing costs: Your lender may waive some closing fees, such as appraisal costs if you refinance with them. 
  • Negotiate for better loan terms: Chances are you’ve already interacted with your existing lender and its loan representatives. The existing relationship could be the leverage you need to get better terms when planning to refinance.
  • Qualify for possible multi-account holder discounts: It’s not uncommon for consumers with multiple accounts to get discounts. Some banks and credit unions offer discounted rates to customers who own several savings or checking accounts. Other lending companies give reward points for credit cardholders who get a car loan.


You are not locked to using your current lender if their auto refinancing offer is unattractive. The institution that currently holds your debt may not give you the desired financial bail-out when you refinance. Consider these common downsides to refinancing through the same debtholder before you ask for a loan.

  • You may not secure their best offer: Knowing your current rate gives your existing lender an upper hand. Sometimes, they may only offer you a slightly lower rate than what you are paying now. But this may not be the best rate you can obtain if you shop around. 
  • You must still rate-shop: Using the same lender may not be as simple as it sounds. You must show them that you are serious about securing the best deal by getting multiple estimates from competing lenders. Therefore, you still have to rate-shop even if you are refinancing with your present lienholder. 
  • You may undergo full vetting like a new consumer: Going with your current lender may not exempt you from undergoing the vetting process. Your existing bank may subject you to its comprehensive underwriting process, your current status notwithstanding.
  • You may get better terms when you switch: J.D. Power estimates customer satisfaction with auto loans in 2020 at 777 on a scale of 1000. Switching auto refinance lenders could save you hassles down the line if you don’t like your current service provider.

How to Secure The Best Car Refinance Rates with your Current Lender

An auto refinance requires three things; funds, time, and effort. Therefore, be sure you are scoring an excellent return on your investment. Consider the following steps if you’re shopping around for vehicle refinance that includes your existing debtholder in the mix.

1. Ensure you’re the right customer for auto refinancing

Refinancing can be an excellent way for car owners to save money on a loan. However, it may not be a great choice if you’re about to finish your loan payments. Also, do not consider refinancing if your current loan has a prepayment penalty, you’re looking to move in a few years, or your FICO rating has dropped since you received your current loan.

2. Obtain numerous quotes from other competitors

You are not just looking for a better offer than the one you have now. Obtaining multiple quotes first will give you an upper hand and demonstrate to your lender that you want nothing short of the best deal. That’s why you must insist on a loan estimate from individual lenders.

The document is going to shed light on the refinance costs, such as:

  • Monthly payment.
  • Interest rate.
  • Closing costs like the origination fee, application charge, and underwriting fee.

With these three elements, it’s easy to compare loan offers. Also, remember that multiple credit inquiries for auto refinancing are likely to show as one request.

3. Compare loan quotes with your current car loan rate

Do some math to see your potential savings monthly and over the loan duration. Avoid any refinances with no closing costs because the APR is likely to be higher, resulting in more payments overall.

4. Go to your current debt holder with estimates in hand 

Plan to visit a loan officer in person and be sure to bring along refinance loan quotes from other lenders. Scheduling an in-person meeting might sound old school. But it allows you to negotiate with your lender face-to-face.

Inquire about special discounts, see if they can waive any closing costs, and ask for a loan estimate. Your current lender is likely to use a retention loan officer to assist in this kind of scenario.

5. Compare your refinance estimates to the refinance deal from your existing lender

Committing under pressure might be misleading. Instead, take your time to compare estimates once you get home. If your current lender is giving you a comparable or better loan deal, then it makes the most sense to refinance with them.

Taking extra time to rate-shop should allow you to rest easy because you did all you could to secure the finest possible auto-refinancing deal.

The Bottom Line

Refinancing a car loan with the same lender is possible. The process will be much quicker than if you were to refinance with another company. However, there are certain qualifications that must be met before refinancing. You must have a good credit score and enough equity in your vehicle for the new loan amount plus the cost of refinancing. If you meet these requirements, it’s easy to refinance your car loan with the same lender.