How Long Does It Take to Refinance a Car?

You’ll want to know how long it takes to refinance a car loan if you're eagerly anticipating lower payments. Typically, the auto refinancing process takes between two weeks and two months, depending on the lender. 

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When a refinance takes between 30 and 60 days, waiting for it to finalize can seem like a long time. But the upside is that a longer process can give you a short break from payments. That could help your cash flow during a tight month. In this article, we’ll go over different factors that affect how long it takes to refinance a car, so you can prepare accordingly.

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Key takeaways

• Refinancing a car loan takes between two weeks and two months to complete.
• The timeline for your refinance depends on the lender you choose and how quickly they process new loans.
• The state you live in can also affect the speed of a refinance, as different states handle car titles differently.
• One thing you can control to speed up the auto refinance process is to submit complete documentation to the lender, including any additional information they request.

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Understanding the auto refinance process timeline

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The process of refinancing a car involves several steps, from exploring your options to signing the final paperwork. Here’s an overview of each stage of the refinancing process.

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1. Rate shopping and prequalification

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You can prequalify for an auto refinance to see what your rate might be. Check around with multiple lenders to find the best deal. 

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2. Application

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When you’ve found a rate offer you like, complete a formal application. Applying online is usually the fastest method. You’ll need to provide some personal information, including proof of income. Just keep any loan applications to within a 14-day window to avoid unnecessary hits to your credit.

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3. Loan processing

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Once you’ve completed the application and uploaded your documents, the lender will review your application and verify your information. It can take some lenders several weeks to process a loan.

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4. Loan payoff

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After loan approval, the lender will fund your loan. You or the lender will use the loan proceeds to pay off your old auto loan. The payoff process can take a few business days, with electronic payments being the quickest route.

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5. Title transfer

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In some states, the lender holds the title until the loan is paid off, at which point they’ll release it. Part of the refinancing process may require transferring the title from your old lender to your new lender. 

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The timeline for title transfers varies by state, but it can take several weeks or more. Electronic Lien and Title (ELT) programs can make the change as soon as the next business day.

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6. First payment

It could be 30 to 45 days before your first payment is due, depending on the timing of your new due date and when you finalized the refinance. 

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What speeds up (or slows down) refinancing?

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How long it takes to refinance a car depends partly on the lender, partly on your state, and partly on you. 

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• Lender speed: Online lenders may offer faster loan applications, approvals, and funding compared to more traditional or brick-and-mortar lenders. 
• Application documentation: Make sure to follow the lender’s application instructions carefully. Be sure to provide all required refinancing documents to keep the process moving quickly. If the lender asks for further documentation, don’t delay in submitting it.
• Title transfers: Some states can take a long time to process title transfers, especially when it involves releasing a lienholder. You can check with your state’s Department of Motor Vehicles for a rough timeline of how long it could take.

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Prepare for your refinance

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Refinancing a car loan can take a few weeks to complete. Researching your refinance options upfront can help save a lot of time down the road. 

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If you want to streamline the refinancing process, RefiJet offers many tools to make each step easier. You can apply for a preapproval, compare rates with multiple lenders, and track your application online. Explore our auto refinancing calculator to see how much money you might save with a refinance and learn more about your options.

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FAQs

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Here are some common questions about how long it takes to refinance a car loan.

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How long does it take to refinance a car loan from start to finish

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The refinancing process for a car loan usually takes at least a couple weeks to complete. The speed depends partly on how fast your current and future lenders can finalize the switch. 

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When does my new car payment start after refinancing?

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You might have more than 30 days before payment is due to your new lender, but check your loan documents to be sure.

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What pitfalls slow down the refinancing process?

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Some of the things that could slow down your auto refinance include an incomplete loan application or missing documentation, a lender that processes loan applications slowly, or a title transfer process that mails paper titles to new lienholders. 

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Do I keep paying my current lender while the refinance is processing?

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Yes, make sure to keep paying your current lender until your refinance is complete. Otherwise, you risk falling behind on your current loan, which could put your refinance loan at risk. Wait for confirmation that your old loan has been fully paid off to stop sending payments there.

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Will having all my required documents speed up the refinancing timeline?

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Yes, providing full and complete documentation is one factor that is in your control during the refinancing process. Make sure you submit all paperwork the lender requests so you don’t slow down your refinance.

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