What happens when you refinance an auto loan at Wells Fargo
Refinancing means replacing your current auto loan with a new one from Wells Fargo, usually at a different interest rate or with different terms. Wells Fargo pays off what you still owe on your existing loan, and you begin making payments to Wells Fargo instead of your original lender. The main reason people refinance is to lower their monthly payment or reduce the total interest they pay over the life of the loan.
Wells Fargo offers auto refinancing to customers who already have a loan elsewhere, as well as to existing Wells Fargo auto loan customers who want to change their terms. The process typically takes one to two weeks from process to funding, though it can be faster if you have all your documents ready.
Key Takeaways
- Wells Fargo refinances auto loans by paying off your existing loan and issuing a new one, which can lower your monthly payment or total interest paid.
- You will need your current loan details, vehicle information, and proof of insurance before you start the refinancing process.
- Your new interest rate depends on your credit score, income, and the age and condition of your vehicle — Wells Fargo will not may provide a rate until you complete the full process.
- You can begin the refinancing process online, by phone at 1-800-869-3557, or at a Wells Fargo branch in person.
- Refinancing may extend or shorten your loan term, which changes how much you pay in total even if your monthly payment goes down.
Gather your current loan information before you start
Before contacting Wells Fargo, collect the details of your existing auto loan. You will need your current lender's name, your loan account number, and the payoff amount — the exact sum needed to close the loan today. You can find the payoff amount on your most recent loan statement or by calling your current lender directly.
You will also need your vehicle's information: the year, make, model, mileage, and Vehicle Identification Number (VIN). Have your proof of auto insurance ready as well, since Wells Fargo requires comprehensive and collision coverage on any vehicle they finance. If your insurance is through a different company, have your policy number and your insurer's contact information available.
Understand how Wells Fargo sets your interest rate
Wells Fargo determines your interest rate based on several factors: your credit score, your income, your employment history, and the vehicle itself. Newer vehicles with lower mileage typically may have access to for better rates than older cars. The bank also considers how much you are borrowing relative to the vehicle's value — borrowing less than the car is worth improves your rate.
Wells Fargo does not publish a standard rate that applies to everyone. Two people refinancing the same vehicle can receive different rates depending on their credit profile. You can get a rough estimate by checking your credit score beforehand, but your actual rate only becomes official after Wells Fargo completes a full process review, which includes a hard credit inquiry.
Start your refinancing process online or by phone
You can begin refinancing through Wells Fargo's website by visiting their auto loan section and selecting the refinance option. The online form asks for your personal information, employment details, the vehicle details, and your current loan information. You will also enter how much you want to borrow and your preferred loan term — typically 36, 48, 60, or 72 months.
Alternatively, call Wells Fargo Auto at 1-800-869-3557 to speak with a loan officer who can walk you through the process over the phone. You can also visit a Wells Fargo branch in person, though branch staff will likely direct you to complete the process online or by phone for faster processing. After you submit your process, Wells Fargo will contact you within one business day to discuss your rate and terms.
Review your new loan terms before you accept
Once Wells Fargo approves your refinance, they will send you a loan estimate that shows your new interest rate, monthly payment, loan term, and total amount you will pay over the life of the loan. This is your chance to compare: does the new monthly payment fit your budget? Will you pay less in total interest, or are you extending the loan so long that you pay more overall?
Pay attention to the payoff date. If you refinance a loan with two years remaining into a new 60-month loan, you are extending your debt by four years even if your monthly payment drops. Some people refinance to lower their payment in the short term but end up paying significantly more in interest. The loan estimate shows all these numbers clearly — read it carefully before signing.
Complete the final steps and fund your new loan
After you accept the loan terms, Wells Fargo will ask you to sign the loan documents electronically or in person. You will also need to provide proof of auto insurance that meets Wells Fargo's requirements — your current policy must show comprehensive and collision coverage with Wells Fargo listed as the lienholder. If your current insurance does not meet these requirements, you will need to contact your insurer and update your policy before Wells Fargo can fund the loan.
Once all documents are signed and insurance is confirmed, Wells Fargo funds the loan by paying off your existing lender directly. You will receive confirmation when the payoff is complete, and your new loan account with Wells Fargo becomes active. Your first payment to Wells Fargo is typically due 30 to 45 days after funding, depending on when in the month the loan closes.
What to do if Wells Fargo denies your refinance request
Wells Fargo may decline your refinance if your credit score is too low, your income is insufficient to support the loan, or your vehicle is too old or has too much mileage. If you are denied, ask Wells Fargo which factor caused the denial — this helps you understand what to address if you want to reapply later.
If your credit score was the issue, you can work on improving it over several months before reapplying. If your vehicle's age or mileage was the problem, you may not be able to refinance with Wells Fargo, but other lenders have different requirements. Credit unions and online lenders sometimes refinance vehicles that traditional banks will not touch. You can also explore whether staying with your current lender and renegotiating your terms is an option.
Frequently Asked Questions
Can I refinance a Wells Fargo auto loan with Wells Fargo?
Yes. If you already have an auto loan through Wells Fargo, you can refinance it to change your interest rate, monthly payment, or loan term. This is sometimes called a rate-and-term refinance. Contact Wells Fargo at 1-800-869-3557 or log into your online account to explore your options.
How long does it take to refinance an auto loan at Wells Fargo?
The process typically takes one to two weeks from the time you submit your process to the time your new loan funds. If you have all your documents ready and respond quickly to Wells Fargo's requests, it can happen faster. Once funded, your old loan is paid off and you begin making payments to Wells Fargo.
Will refinancing hurt my credit score?
Refinancing causes a hard credit inquiry, which temporarily lowers your score by a few points. However, closing your old loan and opening a new one does not cause lasting damage. Your score typically recovers within a few months, especially if you make your new Wells Fargo payments on time.
What if I owe more on my car than it is worth?
If you are underwater on your loan — meaning you owe more than the vehicle's current value — Wells Fargo may still refinance you, but your options are limited. Some lenders will roll the negative equity into a new loan, but this means you will owe even more. Ask Wells Fargo directly whether they can refinance your specific situation.
Can I refinance if I have bad credit?
Wells Fargo typically requires a credit score of 620 or higher, though this is not a hard rule and varies by situation. If your score is lower, you may be denied or offered a higher interest rate that does not improve your current situation. Credit unions and online lenders sometimes work with lower credit scores, so it is worth checking multiple sources before assuming you cannot refinance.