Same car, better deal.

Refinance My Car

How to Lower Your Interest Rate on Your Car Loan in Canada 🚗💸

Looking to Pay Less on Your Car Loan? Here's How Canadians Are Lowering Their Interest Rates


Whether you're stuck in a high-interest car loan or just curious if you could be saving more each month, this guide is your go-to resource on how to lower your interest rate on your vehicle loan in Canada.


🔍 1. Know Your Current Loan Terms


Before taking action, review:


  • Your current interest rate
  • Remaining loan balance
  • Remaining term (months left)
  • Whether it’s an open or closed loan (can you pay it off early?)


💡 Tip: Look at your original loan agreement or log into your lender’s online portal.


💳 2. Improve Your Credit Score


Lenders offer better rates to borrowers with strong credit. Here’s how to boost yours:


  • Pay all bills on time
  • Keep your credit utilization under 30%
  • Don’t apply for new credit cards or loans right before refinancing
  • Check your credit report for errors (you can do this for free through Equifax or TransUnion)


🟢 Score needed for best rates: 700+


📈 3. Refinance Your Loan Through a Trusted Platform


Refinancing means replacing your existing loan with a new one—ideally with a lower rate. Use a trusted Canadian comparison platform like:


👉 CarRefinancing.ca


We help Canadians:


  • Get matched with lenders offering better rates
  • See offers in minutes
  • Apply 100% online


You can refinance if:


  • You've had the loan for at least 6 months
  • Your credit has improved
  • You still owe more than $7,500
  • Your vehicle is less than 10 years old


🏦 4. Ask Your Current Lender for a Rate Reduction


Call your lender and say:


“I’ve been making on-time payments and noticed lower rates are available elsewhere. Can you reduce my interest rate before I consider refinancing?”

They may say no—but if they say yes, you’ve saved yourself a lot of paperwork.


🔁 5. Trade In or Sell and Buy a Cheaper Vehicle


If your loan is too expensive and refinancing doesn’t help:


  • Consider trading into a cheaper or newer vehicle with better financing terms
  • Ask CarRefinancing.ca about our trade-in program or matched dealer options


🧮 6. Extend the Loan Term (with caution)


Extending the term lowers your monthly payment—but it could mean:

  • Paying more in interest over time
  • Being “upside down” on your loan longer

Do the math before you choose this route.


📅 7. Wait for Better Timing


If you:

  • Just started your job
  • Have only recently begun building credit
  • Owe more than the car is worth (negative equity)


…it might be better to wait 3–6 months while improving your credit score or paying down your balance.


Final Thoughts: Your Lower Rate Starts Here


Tired of paying too much on your car loan? Get a free, no-obligation quote from lenders across Canada in minutes with CarRefinancing.ca.
We match Canadians with better rates—even if their credit isn't perfect.


📌 Quick Tips Recap


  • ✅ Check your current rate and loan terms
  • ✅ Improve your credit score
  • ✅ Refinance with CarRefinancing.ca
  • ✅ Ask your lender for a rate cut
  • ✅ Consider trading in
  • ✅ Extend term only if needed
  • ✅ Don’t rush—wait if timing isn’t right

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Refinancing a car in Canada is easy. 💪

Welcome to CarRefinancing.ca: Refinance My Car Online! Discover a smarter financial approach as we help you reduce your payments with decreased interest rates. And that's not all – enjoy the flexibility of postponing payments for 6 months. Your journey to financial freedom starts here.


It's better to refinance your current vehicle than to purchase a new one, especially if you have negative equity. Let our experts help you reduce your payments and decrease the stress on you financially. Going into more debt with a new vehicle isn't always the best solution and that's why we created a simple online way for Canadians to refinance their existing car to keep them driving.