Overview
Refinancing your auto loan can help lower your monthly payment, interest rate, or overall loan cost, but how long does the process take? While auto refinancing can sometimes be completed in a few days, the timeline depends on factors like lender processing times, title transfer requirements, and loan verification steps.
This guide breaks down each stage of the auto refinancing process and what to expect.
How Long Does Auto Refinancing Take?
💡 Tip: While the first steps move quickly, title transfer times vary by state and can impact the overall refinancing timeline.
Step-by-Step Auto Refinancing Process
1. Submit Your Application (A Few Minutes)
✔ Complete an online application and receive an instant loan decision if eligible.
✔ Checking your rate is a soft credit inquiry and does not impact your credit score.
2. Loan Verification & Document Submission (1–5 Business Days)
✔ If approved, you may need to upload supporting documents (e.g., proof of income, registration, or insurance).
✔ The faster you submit documents, the sooner your loan can be finalized.
3. Payoff of Your Existing Loan (5–15 Business Days)
✔ Your new lender will contact your current lender and pay off your existing auto loan.
✔ Processing time depends on how quickly your previous lender applies the payment and releases the lien.
4. Vehicle Title Transfer (2–8+ Weeks, Varies by State)
✔ Your lender works with your state’s Department of Motor Vehicles (DMV) to update the lienholder on your title.
✔ Some states process electronic titles quickly, while others require physical title transfers, which take longer.
💡 Title transfer delays are common and may be outside your lender’s control. If you need an update, check with your state’s DMV.
5. First Payment on Your New Loan (30 Days After Approval)
✔ Once the refinance is finalized, you will receive your new payment schedule and due date.
✔ You may be able to set up AutoPay to avoid late payments.
What Can Delay the Auto Refinancing Process?
✔ Slow lien release by your previous lender – Some lenders take longer to process loan payoffs and release the vehicle title.
✔ State-specific title transfer requirements – Some states require extra steps, such as paper title transfers or borrower involvement.
✔ Missing or incomplete documents – Providing all required documents quickly helps prevent processing delays.
Next Steps
Once your auto refinance loan is approved, keep an eye on your My Account dashboard for updates on your loan status and title transfer progress. If you have any questions, contact your loan servicer for support.
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