Time to refinance your car loan?

There is currently a lot going on in the world  - understatement of the year! Coronavirus has changed a lot of things for a lot of people. Regardless of how you have been personally impacted – stood down, working from home, trading your business through the crisis, hibernating your business, working as close to normal as possible – everyone is concerned about the economic situation. Many are using all that extra time at home in lockdown to evaluate and assess many aspects of their business and personal finances with refinancing one of the options on the table.

Refinancing your current car loan could be on your list, so we’re covering some of the issues to consider.

The Big Picture

Before drilling down to a single reason to refinance your car loan, you should be taking a wider view of a number of issues - your personal circumstances, global impacts, coronavirus effects, etc. – and see how the cumulative effect of all these issues then influences your decision-making.

The key issues to take into account include:

Low Car Finance Interest Rates

Interest rates were already heading for historic low levels before the coronavirus crisis emerged. As part of the monetary response to COVID-19, the RBA further lowered rates. Lenders have responded over time and current interest rates on car loans for both consumers and businesses are at historic lows. If you are part-way through a car loan at a much higher rate, your Jade Car Loans consultant can give you a quote on repayment estimate based on the current lower rates – or use our commercial car finance calculator.

But by singling out interest rates as your main reason for refinancing, you need to take into account any fees and charges that may apply in establishing your new loan. Break fees may apply if you finalise your loan before your due date. Your Jade consultant will look closely at these issues to ensure that refinancing is a better solution for you.

Your Car Loan Payment History

Refinancing your car loan will involve your Jade consultant sourcing you a new loan and that will mean applying to a new lender. Key question: do you have a good payment record on your current loan? Making your repayments on time is a key factor in retaining a good credit profile.


The coronavirus has meant that many people will now depend on the JobKeeper and JobSeeker programs for their income. What lenders may possibly be noting in regard to consumer personal car loans is consistent income before the impacts of COVID-19, was income affected by fallout of the pandemic, if so to what extent and once the crisis is over what your income will be.
For business car finance packages, assessing income pre and post COVID-19 may also be closely assessed.

Hardship Measures

Many people are applying for repayment deferrals due to the impact of coronavirus on their income. If you are or are planning to approach your lender for a 6 month deferral, this may affect your prospects of refinancing. Under usual guidelines, most lenders are not readily willing to refinance car loans due to hardship circumstances.

The Process

If you weigh up all the issues and decide that business car refinancing is of interest to you, then speak with a Jade consultant and discuss the process.

The refinancing process is somewhat similar to applying for an initial car loan. Your consultant will discuss your objective and your requirements and then source you the best offer possible from our wide range of lenders.

  • New loan term: you may choose to shorten or extend your current term.
  • New repayment amount: depending on your personal situation you may choose to increase or decrease your current repayment level.
  • If refinancing at a lower interest rate, you may choose to retain the same repayment level and therefore shorten the loan term.
  • Alternatively, use the lower interest rate to decrease the repayment amount while retaining the same loan term.

On acceptance of the offer, your consultant will handle the paperwork involved in your new lender paying out the previous loan and establishing your new business car finance structure.

If you would like to discuss refinancing your personal car loan or business car finance, please contact a Jade consultant for a confidential conversation. Call 1300 000 003