Special situations

Can I use a personal loan to refinance my auto loan?

Short answer

Yes, but auto-loan refinancing is usually cheaper. Auto refinance loans use the car as collateral, which keeps APRs lower than an unsecured personal loan. Personal-loan refinancing of an auto loan makes sense only when the car is too old for auto refinancers (typically 8-10 years), or when you want to remove a lien on the title.

Context

Auto refinance lenders like Auto Approve, RateGenius, and Lightstream's auto-refi product typically beat personal-loan APRs by 3-7 percentage points at the same credit tier because the car secures the loan.

Where a personal loan wins: very old vehicles (auto refinancers usually decline cars older than 8-10 years or above ~100,000 miles), private-party situations, or when you want to clear the lien from the title (a personal loan with no collateral lets you receive a clean title for the car you can then sell freely).

Editorial

Reviewed by: Compliance Review
Last reviewed: May 22, 2026

Glossary: Secured loan

Ready to compare real personal-loan offers?

Two minutes. Soft credit check only.

Begin a request