Chase refinances existing auto loans, not new car purchases, and the process typically takes one to two weeks from process to funding
Chase offers auto loan refinancing through its banking and lending division, meaning you can refinance a car loan you already have with any lender — not just Chase. The refinance replaces your current loan with a new one, ideally at a lower interest rate or with different terms that better fit your budget. Chase evaluates your credit score, income, employment history, and the vehicle's value to decide whether to approve you and what rate to offer.
The mechanics are straightforward: you submit an process (online, by phone, or in a branch), Chase pulls your credit report and verifies your income, and if approved, Chase pays off your existing lender and issues you a new loan note. You make payments to Chase going forward. The entire process — from process to money in your old lender's account — usually takes seven to fourteen business days, though it can be faster if you have all documents ready.
Key Takeaways
- Chase refinancing works only if you already own a car with an existing loan; you cannot use it to finance a new purchase.
- Your interest rate depends on your credit score, income verification, and the vehicle's current market value, which Chase will assess during underwriting.
- The refinance process takes one to two weeks, and Chase pays off your old lender directly so you do not have to manage two loans at once.
- You can refinance with Chase even if your original loan came from a different bank, credit union, or dealership.
- Refinancing makes financial sense only if the new rate is meaningfully lower than your current rate or if you need to change the loan term to lower your monthly payment.
When refinancing with Chase makes sense financially
Refinancing saves money when the interest rate on your new loan is lower than what you currently pay. If you took out your original auto loan when your credit score was lower, or if market rates have dropped since you financed, refinancing can reduce both your monthly payment and the total interest you pay over the life of the loan. A rate drop of even one percentage point can save hundreds of dollars on a five-year loan.
Refinancing also makes sense if you need to extend or shorten your loan term. Extending the term lowers your monthly payment but increases total interest paid; shortening it raises the payment but gets you out of debt faster. If your financial situation has changed — you lost income and need lower payments, or you received a bonus and want to pay off the car faster — refinancing lets you restructure without breaking your current contract.
Refinancing does not make sense if your current rate is already competitive, if you are deep underwater on the loan (owe more than the car is worth), or if you plan to sell or trade the car within a year or two. Refinancing costs money in the form of a new credit inquiry, potential title transfer fees, and the time cost of the underwriting process. If you are close to paying off the loan, the savings may not justify the effort.
Documents and information Chase will ask for
Chase requires proof of income, usually a recent pay stub and tax return (last two years). If you are self-employed, you will need business tax returns and possibly a profit-and-loss statement. You will also need to provide your current loan details — the lender's name, your account number, and the outstanding balance — so Chase can contact them to request a payoff quote.
You must provide proof of vehicle ownership and insurance. Chase will ask for your vehicle identification number (VIN), the current mileage, and the year, make, and model. Some lenders order a vehicle inspection or valuation report to confirm the car's condition and market value, especially if the loan is large or the vehicle is older. You will also need a government-issued ID and your Social Security number for the credit check.
If you have recently changed jobs or have irregular income, be ready to explain your employment history. Chase may ask for a letter from your employer confirming your position and salary, or bank statements showing consistent deposits if you are paid irregularly. The more complete your process package, the faster the underwriting moves.
How Chase determines your interest rate
Chase uses a tiered pricing model based primarily on credit score. Borrowers with scores above 740 typically receive the best rates; those between 700 and 739 receive mid-tier rates; those below 700 receive higher rates. The exact rates change weekly based on market conditions and Chase's cost of funds, so two people with identical credit scores may receive slightly different offers depending on when they explore.
Your loan-to-value ratio — the amount you owe divided by what the car is worth — also affects your rate. If you owe $15,000 on a car worth $20,000, your LTV is 75 percent, which is considered low-risk. If you owe $18,000 on the same car, your LTV is 90 percent, which is higher-risk and may result in a higher rate or a requirement to carry gap insurance. Chase will order a valuation report to determine the car's current market value.
The loan term you choose influences the rate as well. A 36-month loan typically carries a lower rate than a 60-month loan because the lender's risk is lower — you pay off the debt faster. However, Chase may also consider your debt-to-income ratio, employment stability, and whether you have missed payments on any accounts in the past two years. A single late payment can cost you a quarter-point or more in rate.
The step-by-step refinancing process at Chase
Start by gathering your documents: recent pay stubs, tax returns, proof of insurance, your current loan account number, and your vehicle's VIN. You can begin the process online at chase.com, by calling Chase Auto Refinance at 1-800-935-9935, or by visiting a local Chase branch. Online applications are usually fastest because you can upload documents directly and receive a decision within 24 to 48 hours.
Once you submit your process, Chase orders a credit report and requests a payoff quote from your current lender. This typically takes one to three business days. You will receive a loan offer by email or phone that shows the interest rate, monthly payment, loan term, and total interest you will pay. You have the right to review this offer and ask questions before accepting it.
If you accept the offer, Chase orders a vehicle valuation (if required) and completes final underwriting. This stage usually takes three to five business days. Once approved, Chase generates loan documents for you to sign. You can sign electronically through Chase's online portal or in person at a branch. After you sign, Chase contacts your current lender, pays off the remaining balance, and issues you a new loan note. Your first payment to Chase is typically due 30 days after the loan funds.
Fees and costs associated with Chase auto refinancing
Chase does not charge an origination fee or process fee for auto refinancing. However, you may incur costs elsewhere in the process. Your state may charge a title transfer fee (typically $25 to $100) to record the new lien holder on your vehicle's title. Some states require a new inspection or registration, which can add another $50 to $200 depending on where you live.
If your current lender charges a prepayment penalty — a fee for paying off the loan early — you will owe that when Chase pays them off. Most auto lenders do not charge prepayment penalties, but some credit unions and buy-here-pay-here dealers do. Check your current loan documents or call your lender to ask whether a penalty applies before you refinance.
You may also face a credit inquiry fee if Chase orders a vehicle valuation report, though this is usually bundled into the loan cost rather than charged separately. If you refinance with a shorter term, your monthly payment will be higher even if your rate is lower, so calculate the total cost over the new loan term, not just the monthly payment, to understand whether refinancing truly saves you money.
Comparing Chase refinancing to other lenders
Chase is one of the largest auto refinancers in the country, but it is not the only option. Credit unions, online lenders like LendingClub and Upgrade, and other banks like Bank of America and Wells Fargo all offer auto refinancing. Rates and terms vary significantly, so comparing at least three offers before deciding is standard practice.
Credit unions often offer lower rates than banks, especially if you are a member and have a good credit history with them. Online lenders may approve borrowers with lower credit scores or higher debt-to-income ratios than Chase will. The trade-off is that online lenders may charge higher rates or require a longer process process. Local or regional banks may offer better rates if you have an existing relationship with them.
When comparing offers, look at the annual percentage rate (APR), not just the interest rate, because the APR includes fees and gives you a true cost comparison. A lender quoting a lower interest rate but charging a $500 origination fee may cost more overall than a lender with a slightly higher rate and no fees. Request quotes from at least two or three lenders and compare the total interest paid over the full loan term.
What happens if Chase denies your refinance request
Chase may deny a refinance request if your credit score is too low (typically below 620), if you have missed recent payments, if you are underwater on the loan by a large margin, or if your debt-to-income ratio is too high. If denied, Chase will provide a reason in writing. You have the right to request a copy of the credit report Chase used and to dispute any errors on it.
If you are denied by Chase, you have several options. You can wait three to six months, improve your credit score by paying down other debts or correcting errors on your credit report, and reapply. You can also explore with a co-signer who has stronger credit. Alternatively, you can explore with a different lender — credit unions and online lenders sometimes approve borrowers that traditional banks decline, though usually at a higher rate.
If you are underwater on the loan, some lenders will refinance if you agree to roll the negative equity into the new loan, meaning you will owe more than the car is worth for longer. This is generally not recommended because it increases your total interest cost and leaves you vulnerable if the car is damaged or totaled. Paying down the principal first, or waiting until the car's value rises, is a better long-term strategy.
Frequently Asked Questions
Can I refinance a car loan I just took out three months ago?
Yes, there is no waiting period. However, refinancing very soon after your original loan may not save you money because you have already paid the origination costs and interest on the original loan. Refinancing makes more sense after at least six months to a year, or when your credit score has improved significantly since you took out the original loan.
What if I still owe money on my trade-in from a previous car?
If you have an existing auto loan, Chase can refinance it regardless of whether you still owe on another vehicle. However, if you owe on multiple cars, your debt-to-income ratio will be higher, which may result in a higher rate or denial. Pay off one loan before refinancing the other if possible.
Does refinancing hurt my credit score?
Yes, but temporarily. The credit inquiry Chase pulls will lower your score by a few points for a few months. However, refinancing also replaces an old loan with a new one, which can improve your credit mix. The net effect is usually a small dip that recovers within three to six months, especially if you make on-time payments on the new loan.
Can I refinance if I have a lease instead of a loan?
No. Refinancing applies only to loans you own. If you are leasing a car, you cannot refinance because you do not own the vehicle. You can refinance only after the lease ends and you purchase the car, or if you buy out the lease early and then refinance the purchase loan.
How long does the entire refinancing process take from start to finish?
Most refinances close within seven to fourteen business days if you submit all documents upfront. Online applications move faster than phone or in-branch applications. If Chase needs additional documentation or if your lender is slow to provide a payoff quote, the process can take up to three weeks.