Refinance
car loan
Here you’ll find answers to the most common questions about how to refinance or consolidate your car loan to save money.
Is it worth it? Yes, it’s worth it in the vast majority of cases if you can get a lower effective interest rate than you have today.
Financing certificate
If you’re thinking about replacing your current car or buying your first car, it’s a good idea to have a financing approval letter ready. That way, you can act quickly when you find the car you want
Terms and Conditions for Car Loan Refinancing:
→ The loan amount or balance must be over 150,000, and you must own a home (no mortgage will be taken out on the home).
→ You cannot have had the loan for more than 4 years at the time of the move.
→ Currentinterest rate starting at 6.95% nominal; the rate depends on how much equity you used when you purchased the car.
→ Setup fee : 800; term fee: 95
→ The loan must be transferred on the same terms as the current loan (current borrowers and balance—no additional borrowing)
We can help you refinance your car loan
Through our partnerships with several banks and credit institutions,
We have extensive knowledge of the solutions and products available.
Contact us to see if you can save money by transferring your car loan to a new bank. Our services are both free and non-binding.
– Børge Finsæther, Eiendomsfinans Harstad
FAQ – Frequently Asked Questions About Refinancing a Car Loan
Is it worth refinancing my car loan?
Yes, in the vast majority of cases, it’s worth it if you can get a lower effective interest rate than the one you have today. Since cars depreciate quickly, even a small drop in interest rates can add up to significant savings over the life of the loan. If your personal finances have improved or interest rates in the market have fallen since you took out the loan, you should explore your options.
How much can I save by refinancing?
For example, if you have 300,000 kroner left on your car loan and manage to lower the effective interest rate by 2%, you’ll save about 6,000 kroner a year in interest costs alone at the start of the period.
Should I refinance my car loan or roll it into my mortgage?
- Transferring the car loan: You transfer the security interest to a new bank that offers a lower auto loan interest rate. The term usually remains the same.
- Refinance into your mortgage: You increase your mortgage to pay off the car loan. This gives you the lowest interest rate on the market, but it requires that you have available equity in your home (within 85% of the home’s value).
Can I refinance a car loan that has a lien on the car?
- The new loan must cover exactly what you have left on the old loan (you cannot borrow more money using your car as collateral).
- You cannot have had the loan for more than 4 years at the time of the transfer.
- You must own a home (no mortgage is taken out on the home).
The loan amount or balance must be over 150,000,-
How much does it cost to refinance a car loan?
The application itself and the process are free. The new bank usually charges an origination fee (often between 1,000 and 2,500 kroner) to set up the new loan and register the new mortgage. You should factor this fee into your calculations when determining whether refinancing is worthwhile.
How does the actual process of transferring the loan work?
- You send us a non-binding application to refinance your car loan
- You provide information about the car (license plate number) and the remaining balance on your current loan.
- If your application is approved, you’ll sign the documents digitally using BankID.
- The new bank will contact your old bank and pay off the old loan directly.
Can I refinance my car loan if I have a payment delinquency on my credit report?
The vast majority of traditional banks will automatically reject your application if you have an active payment default or ongoing debt collection cases. The only realistic option for refinancing in such a situation is if you own your own home and can apply for a so-called “restart loan”, in which the car loan is rolled into the mortgage through a specialized bank.
What should I do if the car has lost a lot of value?
If the remaining balance on the loan is higher than the car’s current market value on the used car market, the bank may refuse to transfer the loan with a full sales lien. In such cases, options may include making additional payments on the loan before transferring it, or considering a car loan without comprehensive insurance if the loan amount is low.
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