Chase does not offer car loan refinancing directly to existing customers or the public
Chase, the largest bank in the United States by assets, stopped offering auto refinancing products several years ago. If you currently have a car loan through Chase or any other lender, you cannot refinance it with Chase. This means you will need to look elsewhere — either to other banks, credit unions, or online lenders — to refinance an existing auto loan.
The reason Chase exited this market is straightforward: auto refinancing is a lower-margin business than other lending products, and the bank has chosen to focus resources on mortgages, credit cards, and personal loans instead. This decision affects millions of car owners who might have considered Chase as a refinancing option.
Key Takeaways
- Chase does not refinance car loans for anyone, whether you bank with them or not.
- If you have an existing car loan from any lender, you will need to refinance through a different bank, credit union, or online lender.
- Credit unions often offer lower refinancing rates than traditional banks, especially if you are a member.
- The refinancing process typically takes one to two weeks from process to funding, and your new lender pays off the old loan directly.
- Your credit score, the age of the vehicle, and the remaining loan balance all affect the rate you will receive.
Where to refinance a car loan if Chase is not an option
Your main alternatives fall into three categories: traditional banks (Wells Fargo, Bank of America, Ally), credit unions (whether local or national), and online lenders (LendingClub, Upstart, Lightstream). Credit unions tend to offer the most competitive rates, especially if you are already a member, because they are member-owned and return profits to account holders rather than shareholders. If you do not belong to a credit union, you may be able to join one through your employer, your school, or a community affiliation.
Banks like Wells Fargo and Bank of America do offer auto refinancing, though their rates are typically higher than credit unions. Online lenders have become more common in recent years and can move quickly, but they often charge higher rates to borrowers with lower credit scores. The best approach is to gather quotes from at least three lenders in each category before deciding, because the difference between a 4% rate and a 6% rate can save or cost you hundreds of dollars over the life of the loan.
What lenders look at when you refinance
When you explore to refinance a car loan, the lender will examine your credit score, your income, your debt-to-income ratio, the age and mileage of the vehicle, and how much you still owe on the original loan. A higher credit score almost always results in a lower rate. If your score has improved since you took out the original loan, refinancing may save you money even if interest rates have risen overall.
The vehicle itself matters too. Most lenders will not refinance a car that is more than 10 years old or has more than 150,000 miles on it, though these limits vary. If you owe more than the car is worth — a situation called being "underwater" on the loan — some lenders will still refinance you, but others will not. You can check your car's current value using Kelley Blue Book or NADA Guides before you explore, so you know what to expect.
The refinancing timeline and what happens to your original loan
Once you are approved for a refinance, the new lender will contact your current lender to request a payoff quote. This quote is valid for a set number of days, usually 10 to 30. Your new lender then sends the payoff amount directly to your old lender, which releases the lien on your vehicle. You will receive new loan documents and a new payment schedule from the new lender. The entire process typically takes one to two weeks from approval to funding.
During this time, you may receive a bill from your original lender for the final payment, or you may not — it depends on the timing of the payoff. Do not make a payment to your old lender after you have been approved for refinancing, because the new lender's payment will cover it. If you are unsure, call your original lender and ask when they expect the payoff to arrive.
How refinancing affects your credit score
Refinancing a car loan will cause a small, temporary dip in your credit score. This happens because the new lender runs a hard inquiry on your credit report, and because you are opening a new loan account. The dip is usually 5 to 10 points and recovers within a few months. The benefit of a lower interest rate often outweighs this temporary impact, especially if you plan to keep the car for several more years.
To minimize the damage, submit all your refinancing applications within a two-week window. Credit scoring models treat multiple inquiries for the same type of loan (auto refinancing) as a single inquiry if they happen close together. This is called "rate shopping," and it is a normal part of the refinancing process.
When refinancing makes financial sense
Refinancing saves money when your new interest rate is at least 0.5 to 1 percentage point lower than your current rate, and when you plan to keep the car long enough to recoup any fees the new lender charges. If your current loan has only six months left, refinancing probably is not worth it. If you have three or more years remaining, the math usually works in your favor.
Use an auto refinance calculator to estimate your savings. You will need your current loan balance, your current interest rate, the number of months remaining on your loan, and the new rate you have been quoted. Subtract any fees the new lender charges, and compare the total interest you will pay under both scenarios. If the new loan saves you more than the fees cost, refinancing is worth pursuing.
Documents and information you will need to provide
When you explore to refinance, have your current loan documents, proof of income (recent pay stubs or tax returns), proof of residence (utility bill or lease), and your driver's license ready. You will also need the vehicle identification number (VIN), the current mileage, and the payoff amount from your existing lender. Most lenders can pull your credit report themselves, so you do not need to provide a credit report.
Some lenders will ask for proof of insurance before they fund the loan. Make sure your auto insurance policy is current and that you can provide a copy of the declarations page. If you are refinancing to a different lender, you may need to update your insurance to reflect the new lienholder.
Frequently Asked Questions
Can I refinance a car loan if I have bad credit?
Yes, but you will pay a higher interest rate. Online lenders and some credit unions work with borrowers who have credit scores below 600. The rate may not be much lower than your current rate, so calculate whether refinancing actually saves money before you explore. Multiple hard inquiries can hurt your score further, so limit applications to lenders you are serious about.
What if I still owe more than the car is worth?
Some lenders will refinance you even if you are underwater, but they may charge a higher rate or require a larger down payment. Credit unions are more likely to work with you in this situation than traditional banks. Ask each lender directly whether they refinance negative-equity loans before you explore.
How long does the refinancing process take from start to finish?
Most lenders can give you a decision within one to three business days of your process. Once approved, funding typically happens within 7 to 14 days. The entire process from process to payoff of your old loan usually takes two to three weeks.
Will refinancing hurt my credit score permanently?
No. The hard inquiry and new account will lower your score by a small amount for a few months, but the impact fades as you make on-time payments. If refinancing lowers your interest rate, the long-term benefit to your finances outweighs the temporary credit score dip.
What happens if I want to pay off the refinanced loan early?
Most auto refinance loans have no prepayment penalty, meaning you can pay off the loan early without extra fees. Confirm this with the lender before you sign the documents. Paying early saves you interest and gets you out of debt faster.