Move Your Car Loan – Find Relief Fast (2026)

Are you feeling burdened by your current car loan and wondering if you can move it to another bank for better terms or rates? You're not alone. Many Australians find themselves in a situation where a car loan that once seemed manageable has become a financial strain due to changing circumstances or better offers available in the market. The good news is that you can potentially move your car loan to another bank, a process known as refinancing, to secure more favourable terms. In this guide, we’ll walk you through the essentials of refinancing your car loan in Australia in 2026, including the benefits, the process, and expert tips to help you make the best decision for your financial future.

Understanding Car Loan Refinancing

Car loan refinancing involves taking out a new loan to pay off your existing car loan. The new loan often comes with better terms, such as a lower interest rate or lower monthly repayments, which can help reduce your financial burden. This option is particularly attractive if your financial situation has improved since you first took out the loan, or if interest rates have dropped.

While refinancing can offer significant benefits, it’s important to understand the associated costs and potential drawbacks. These may include exit fees from your current lender and establishment fees with the new lender. Additionally, extending the loan term can reduce monthly payments but may increase the total interest paid over the life of the loan.

Current Car Loan Refinancing Rates and Requirements in 2026

The car loan market in Australia is competitive, with lenders offering a range of interest rates and terms. As of 2026, interest rates for car loans typically range from 6.49% to 12%, depending on factors such as your credit score, the loan amount, and the loan term. Here's a breakdown of what you might expect:

Eligibility criteria can vary by lender but generally include:

• Australian citizenship or permanent residency
• Minimum age of 18 years
• Good credit history
• Proof of stable income
• Current loan in good standing

It's important to compare offers from various lenders, and at Esteb and Co, we have access to a panel of 83+ lenders, allowing us to find the most competitive refinancing options for you.

Steps to Move Your Car Loan to Another Bank

Refinancing your car loan involves several key steps:

1. Evaluate Your Current Loan: Start by reviewing your current loan terms, including the interest rate, remaining balance, and any early termination fees.
2. Check Your Credit Score: A higher credit score can qualify you for better rates. Obtain a copy of your credit report and address any issues.
3. Research and Compare Offers: Use comparison sites or consult with a broker like Esteb and Co to explore refinancing options from various lenders.
4. Calculate Potential Savings: Consider the total cost of refinancing, including any fees, and compare it against the potential savings from lower interest rates.
5. Apply for the New Loan: Once you choose a lender, submit your application with necessary documentation such as proof of income and identity.
6. Pay Off the Existing Loan: Upon approval, the new lender will pay off your existing loan, and you’ll start making payments under the new terms.

Tips and Considerations for Refinancing Your Car Loan

Here are some expert tips to consider when refinancing your car loan:

• Beware of Lengthening the Loan Term: While extending the loan term can lower monthly payments, it can increase the total interest paid over time.
• Consider the Age and Condition of Your Vehicle: Some lenders may have restrictions on refinancing older vehicles.
• Be Mindful of Fees: Calculate all costs associated with refinancing, including exit fees and any new loan establishment fees.
• Shop Around: Don’t settle for the first offer. Use Esteb and Co’s extensive lender network to find the best deal.
• Use a Loan Calculator: Estimate your new loan payments and total interest to ensure refinancing makes financial sense.

Frequently Asked Questions

1. Can I refinance my car loan with bad credit? While challenging, it's not impossible. Some lenders specialise in loans for individuals with less-than-perfect credit, but expect higher interest rates.

2. Will refinancing affect my credit score? Applying for a new loan can temporarily lower your credit score due to credit inquiries, but consistent on-time payments on the new loan can improve it over time.

3. How soon can I refinance my car loan? Many lenders require you to wait at least six months after the original loan is taken out. However, terms can vary, so it’s best to check with your current lender.

4. Is there a penalty for paying off my car loan early? Some loans have early termination fees. Review your loan contract for specific details.

5. Can I refinance if I owe more than the car is worth? This situation, known as being "underwater," can make refinancing difficult, but some lenders may still offer options.

6. How can Esteb and Co help with refinancing? With access to 83+ lenders, Esteb and Co can help you find competitive refinancing options tailored to your needs, potentially saving you money over the life of your loan.