How Much Does It Cost To Refinance A Car?

Last Updated on October 18, 2025 | Prices Last Reviewed for Freshness: November 2025
Written by Alec Pow – Economic & Pricing Investigator | Content Reviewed by CFA Alexander Popinker

Educational content; not financial advice. Prices are estimates; confirm current rates, fees, taxes, and terms with providers or official sources.

Refinancing replaces your current auto loan with a new one that ideally lowers your rate, adjusts your term, or both, and the right move can cut interest or monthly payments, but there are real fees and state charges that change the true cost. See Bankrate’s refinancing guide.

If you are comparing offers, focus on all-in borrowing costs and not just the headline APR, since lenders may advertise no origination fee while building costs into the rate or rolling title and government charges into the new balance. This Chase guide explains how those costs show up.

Article Insights

• Typical lender costs are $0–$150, sometimes more with marketplaces or doc prep charges.
• DMV and county fees range from $2 for lien recording to $214.50 for a state title transfer.
• A prepayment penalty can erase savings, so confirm terms before paying off the old loan.
• Lower rates save interest, but longer terms raise total cost even with a smaller payment.
• Credit-tier averages suggest the biggest wins when your score improves or market rates fall.
• Shop several lenders, ask for fee sheets, and compute a breakeven against projected savings.

How Much Does It Cost To Refinance A Car?

The cost to refinance a car ranges between 0 and $200+.

Most direct lenders and credit unions advertise $0 application or origination cost, although some charge modest document or origination fees that commonly fall between $50 and $150, and marketplace lenders may go higher. Examples today include credit unions with no fees such as Patelco Credit Union, fee schedules at institutions like First Tech Federal, and marketplaces such as LendingClub that may list a flat origination charge for larger loans.

State and county charges add meaningful variation, since titling systems differ, with lien recording, title transfer, fast title printing, and local surcharges ranging from $2 to more than $200 depending on where you live, as shown on the Florida fee schedule, Illinois fees, and Wisconsin title fees.

If your original loan has a prepayment penalty, that adds a separate cost line and must be weighed against any projected interest savings; see the CFPB explainer on prepayment penalties.

Generally, most lenders do not charge an upfront fee to refinance, but borrowers may encounter prepayment penalties on the existing loan or document fees ranging from $100 to $400. Interest rates on refinance loans typically range from about 4.2% to 24%, heavily influenced by credit score, loan amount, and vehicle age. Average borrowers refinance to reduce their interest rate by approximately 2%. See the NerdWallet overview and current Bankrate rate tables.

Popular lenders such as LightStream publish wide APR bands, while credit unions may post lower tiers. You can estimate savings with the Bank of America auto refinance calculator. Market context on balances and payments is available in LendingTree statistics and Bankrate average rates.

Also, read our articles on the cost of home title locking, mortgage protection insurance, or mortgage refinancing.

Real-life cost examples

A borrower with excellent credit and a $15,000 remaining balance picks a marketplace lender that charges a $150 origination fee and pays the DMV $0–$30 to update the lien, for total upfront costs around $150–$180 (see LendingClub policies and Texas lien guidance).

A subprime borrower in a high-fee state could face title and transfer charges near $300 when the state title fee itself is above $200, then add small lien or counter service amounts, consistent with Wisconsin DMV fees.

A California owner who refinances during a renewal month could encounter a registration charge around $75 depending on vehicle and county add-ons, then add a $100 prepayment penalty if the contract permits it; see California registration fees and the California fee calculator.

Cost breakdown

Direct lender fees can be $0–$150 in many cases and sometimes higher—verify each line item. Examples include fee-free programs at Patelco, published schedules at Orange County’s Credit Union, and flat charges at marketplaces like LendingClub.

Government and recording charges include title transfers, lien additions, fast paper title printing, and county recording fees that span $2–$214.50 based on current Florida, Texas, Illinois, and Wisconsin schedules.

Table, typical refinance add-ons and examples

Factors influencing the cost

Credit score drives the rate you qualify for and therefore your total interest across the new term; see Experian’s averages (average rates by credit tier). Loan balance, vehicle age, lender policy, and state law also shape cost; compare against current rate tables and confirm title rules at your DMV (e.g., Texas lien updates).

Alternative products or services

If you need relief and a refinance does not pencil out, a payment plan or modification with your current servicer could be cheaper—see the CFPB’s options to help with auto loans. Other paths include trading into dealer financing, a personal loan for a small balance, or a lease buyout refi; compare offers side by side.

Ways to spend less

Shop three to five lenders, favoring credit unions or banks that publish no origination fee and no prepayment penalty, and ask each for a fee sheet that lists document, title handling, and any third-party charges included in the APR (see First Tech for a representative layout). Time your payoff to minimize overlapping daily interest between the old loan and the new one, and avoid extending the term unless you truly need payment relief.

Expert insights and tips

Colorado Credit Union’s perspective frames refis as a way to cut unnecessary interest, though outcomes depend on rate, term, and balance. Track market movements with Bankrate’s refinance ranges and review Experian’s guidance on auto-loan rate factors.

Total costs

Refinancing can lower your payment and still raise the lifetime bill if you stretch the term—compare total interest on your current schedule against the new amortization with a refinance calculator. As a quick sanity check, if lender and DMV fees total $225, aim for at least $225 in interest savings.

Hidden and unexpected costs

Some lenders charge administrative or document preparation fees that are disclosed in the APR but easy to miss—see this NerdWallet review. State processes can add wrinkles like fast title printing and county recording fees; examples include Florida paper title guidance and Travis County transfer fees.

Financing and payment options

Most U.S. auto refi loans use fixed rates; some lenders allow a short first-payment deferral that provides one month of cash-flow relief while interest continues to accrue—see RateGenius “skip-a-payment”. Set automatic payments and ask about relationship discounts that can trim APR at certain credit unions.

Resale value and depreciation

Never refinance into a balance that exceeds likely resale value unless you understand the risk—see the CFPB report on negative equity. Check equity with NADA values before applying and align the term with expected ownership.

Answers to Common Questions

Is refinancing worth it after two years?
Often yes—when you can lower APR without meaningfully lengthening the term and the interest saved exceeds lender/DMV costs. Use a refinance calculator and compare against current market ranges.

Can I refinance with bad credit?
You can, though rate bands widen and approval rules tighten—consider a co-borrower and whether a short wait to improve your score could unlock cheaper offers (see Experian’s rate factors).

Will I pay sales tax again if I refinance?
No—refinancing is typically a financing event, not a sale. Expect title, lien, and recording fees; examples are listed on the Florida fee schedule and Texas lien page.

Can I refinance more than once?
Yes, but each payoff and retitle includes fees and likely a credit pull—calculate the breakeven every time and avoid repeatedly stretching the term. See Bankrate’s advice on when to refinance.

Who offers the cheapest auto refinancing today?
Rates change with credit, loan attributes, and market policy. Compare fee-free credit unions with marketplace offers on the same day; examples include First Tech Federal alongside aggregators that surface multiple lender quotes.

Short checklist — Shop more than one lender, watch small fees, and verify DMV charges in your state.