The term actually refers to a financial situation wherein a borrower finds financing to pay off a current loan. This is why auto refinancing is important because it is one of the few methods that could help you minimize loan costs and maximize your savings. Let’s say, for instance, you make an auto refinance loan for $16,500 on a new Honda Accord. Your current monthly payment is $446 which gives you total interest charges of $10,283 at the end of your loan period. Your auto refinance loan offers you a monthly payment of $319 with total interest charges of $2,639. Most consumers who actually decide to finance their cars rather than lease pay very little on a down payment and no more than their monthly minimums throughout the life of the loan — or until they sell. read more