Glossary

Refinance

Replacing your current auto loan with a new loan at better terms.

Refinancing makes sense when your credit has improved, market rates have dropped, or you want to extend (or shorten) your loan term. The new lender pays off your old loan, and you make payments to the new lender at the new rate.

Related terms

APR (Annual Percentage Rate)

The yearly cost of a loan including interest and fees, expressed as a percentage.

Credit Score

A numerical summary (typically 300-850) of your credit history used by lenders.

Auto Loan

A secured installment loan used to purchase a vehicle, with the car serving as collateral.

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