REFINANCE THROUGH CARIBOU
Caribou’s Auto Refinance 101:
Guide to car loans
Eric Stradley, President of Caribou Financial, Inc.
Hi, I’m Eric Stradley, President of Caribou Financial.
Refinancing your car loan might not be the first thing on your mind, but it could be one of the easiest ways to save money each month. If your credit has improved or rates have dropped since you got your loan, you might be paying more than you need to on your car loan.
In this auto refinancing guide, I’ll walk you through the basics of auto refinancing: why it makes sense, how it works, and how much you could save. My goal is to help you understand your options and see what’s possible.
Already know what you’re looking for?
Check how easy and fast it is to refinance auto loan with no impact to your credit.
What is auto refinance?
Refinancing your car loan means replacing your current auto loan with a new one, often to lower your interest rate, reduce your monthly payment, or change your loan terms. I like to think of it as switching phone plans to save money, but for your car. Through Caribou, customers could save $159/month or more!*
Why refinance your car loan?
If you’re wondering whether it’s worth refinancing your car loan, here are some of the most common reasons drivers choose to do it:
- Your credit score has improved since you took out the loan
- Interest rates are lower now than when you financed
- You want to lower your monthly payment and free up cash
- You want to pay off your loan faster or adjust the terms
Refinancing a car loan can help you do more than save on interest. It lets you change your loan terms, reduce monthly payments, and make your auto loan work better for your current budget and credit profile.
Find out if now’s the right time.
Did any of these changes happen?
See if you can save refinancing your auto loan.
How auto refinancing works: Step by step
STEP 1
Check your rate
(No impact to credit+)
See your pre-qualified offers in minutes without impacting your score.
STEP 2
Compare loan options
Choose an auto refinance offer that works for you: shorter terms, lower rate, or total savings.
STEP 4
Start saving
With your new loan in place, and a new rate locked in, you now have more money in your pocket.
Want more detail? Explore the full refinance process.
How much could you save by refinancing?
Many drivers are paying more than they need to, but they don’t realize it. Through Caribou, our customers save an average of $159 a month, or over $1,908 a year.* That’s real money back in your budget.
Want to see what your savings might look like? Use our tools to estimate your potential refinance savings:
- Savings by State Calculator — See how your location affects refinance rates
- Savings by Vehicle Type Calculator — Compare savings based on what you drive
- General Refinance Calculator — Get a quick savings estimate based on your current loan
Common questions, answered
Most drivers know they can refinance a mortgage, but you can refinance your car loan, too. If you’ve improved your credit or interest rates have dropped, refinancing your auto loan could help you lower your monthly payments and reduce how much you pay in interest over time.
In my experience, most people refinance to either lower their monthly payment, reduce how much interest they pay over time, or change their loan term. For example, if you originally financed your vehicle at a higher rate and your credit score has improved, refinancing could help you lock in a better rate. Some drivers also refinance to pay off their loan faster or to add or remove a co-borrower.
To identify refinance options available, Caribou looks at a few key things: your credit score, the balance on your current loan, the remaining term, and the value of your vehicle. You’ll need to provide some basic information about yourself and your car so we can match you with one of our lending partners.
For more answers, visit our Auto Refinance FAQs.
Glossary: Know your terms
Auto loan terms don’t have to feel like a foreign language.
From acronyms like APR to terms like credit pull and prequalification, this guide breaks it down without the jargon.
A credit pull is when someone checks your credit report. There are two types:
- Soft pull: Doesn’t affect your credit score (used for things like pre-qualification).
- Hard pull: Can impact your score slightly (usually done when you apply for a loan). Only authorized parties like lenders or employers can perform a credit pull.
APR is the yearly cost of borrowing money. It includes both your interest rate plus fees and other charges as determined by your lender, so it gives a more complete picture of what you’ll actually pay.
Pre-qualification is a first step in the loan process. A lender takes a quick look at your credit and income to see if you might qualify.
- It uses a soft credit pull, so it won’t affect your score.
- It’s not a loan approval. It’s just an early estimate of what you could qualify for.
See the full glossary of refinance terms.
Real stories from real drivers
Refinancing looks different for everyone, but the goal is the same: a better loan that fits your life. Whether it’s lowering monthly payments, reducing interest, or adjusting your loan terms, here’s how drivers across the country are using Caribou to make auto refinancing work for them.
Refinance myths—busted
I’ve heard just about every concern when it comes to auto refinancing, and I get it. There’s a lot of misinformation out there. But if there’s one thing I’ve learned, it’s that refinancing is often more accessible (and more worthwhile) than people realize. Here are a few of the most common myths I come across, and the facts behind them.
MYTH 1
You need perfect credit to refinance.
→ Not true.
That’s not the case. Many of the drivers we work with have fair or even below-average credit. If your credit score has improved, or if you simply didn’t get the best rate the first time around, you could still qualify for better terms.
MYTH 2
The process is complicated and takes too long.
→ Not through Caribou.
It doesn’t have to be. At Caribou, we’ve designed a process that’s straightforward from start to finish. There’s no need to visit a dealership or sift through piles of paperwork. Everything is handled online with clear steps along the way.
MYTH 3
My current rate is probably fine.
→ Maybe, but maybe not.
Maybe, but maybe not. Even a 1–2% drop in interest rate can mean hundreds (or thousands) in savings over the life of your loan. And checking your rate with Caribou won’t impact your credit, there’s no downside to finding out.
Ready to explore your options?
If you’re curious what refinancing could look like for you, I invite you to check your rate. There’s no cost to do it, and it won’t affect your credit score. It’s just a chance to see your options and make an informed choice on your own time.