The short answer is yes. The refinance process is the same regardless of whether your vehicle is electric, gas-powered, or hybrid.
However, because of the recent changes in EV credits, electric car owners may have a harder time finding a good deal when buying out a lease or refinancing right now.
Read on to learn more about refinancing and unique considerations for EV owners.
In this guide, you’ll find answers to some of the most common questions about refinancing and lease buyouts for EVs.
We’ll cover:
The EV refinance process
What you need to refinance an electric car
How changing EV credits could affect your financing
Leased EVs
The first step if you’re considering a lease buyout or refinance
Like any other vehicle, the process to refinance an EV is fairly simple. You’ll need to:
Collect all your information.
Research and get quotes from multiple lenders to compare options.
Choose the loan with the best terms for your financial situation and apply.
Sign the paperwork and switch to the new loan.
Let’s take a closer look.
Gather information about your vehicle, your current loan, and your finances.
Take a moment to consider whether the timing is right for a refinance: has your credit score gone up or down since you got your initial financing? Has it been at least six months since you got your loan, and do you have at least 2 years left on the loan? How have market and EV tax credit changes affected your loan-to-value?
If you got your loan from a dealership, or if your financial picture has improved, there’s a good chance you could save between $135 and $500 a month by refinancing.
Our refinance experts recommend getting quotes from at least 3-5 lenders in your refinance search to ensure you find the best deal for you. Be sure to submit all your applications within a 2 week timeframe when you get to the part of the process that requires a hard credit check — this will minimize the hit to your credit caused by a credit check.
If you choose to refinance with Auto Approve, you don’t need to worry about this: you’ll get quotes from our network of 50+ trusted lenders with only one hard credit check, then an Auto Approve loan expert will help talk you through the fine print of the options available to you to help you find the deal that’s right for you.
Read over your options—and review your existing loan terms—to check for your new APR, loan terms, monthly payment, and any fees. You’ll especially want to check your current loan for any prepayment penalties that might outweigh your potential savings.
Simple as that! Once you’ve found your ideal loan option, you’ll submit any required paperwork (including to the DMV, if necessary), and once everything is locked in, your new lender will pay off your old loan and you’ll start paying the new one. Be sure that everything is settled with the old loan before you stop making payments to be safe.
Again, if you refinance with Auto Approve’s lender network, we’ll handle the paperwork for you—even the DMV.
Here’s your refinance paperwork checklist:
Driver's license
SSN
Proof of address
Proof of income
Car details
Proof of insurance
Vehicle registration
Current loan information
Need more details? Check out our guide to the paperwork you need to refinance.
Here’s the good news: if you purchased an electric vehicle and got financing before Sept. 30, 2025, you should have already benefited from the recently canceled federal tax credit. Plus, while the EV tax credit went away, starting January 1, 2025, a credit kicked in allowing qualifying individuals to deduct as much as $10,000 per year in interest on new personal use vehicles.
The bad news is, it’s likely we’ll see a slightly accelerated dip in the resale value of electric vehicles in the next few years due to the now-expired credit, and if that results in your vehicle’s value depreciating faster than what would have been estimated at the time you got your original financing, your loan-to-value on your EV could get wonky, which could affect your eligibility for a better rate.
Confused? The loan-to-value on a financed car, often abbreviated as LTV, is the percentage of your car’s value that you owe on an existing loan. You can read more about what it means, why it matters, and how to improve your loan-to-value here.
If your EV is leased and you’re considering a lease buyout, the drop in resale value for electric vehicles may be of greater interest to you.
When you come to the end of your lease, you’ll likely have the option to either return the vehicle or buy it at a price set at the time you got your lease. If that price is higher than the market value of the car, it simply isn’t a great financial choice unless you really love that specific vehicle—or know that you’ll get dinged at turn-in time for issues with the condition of the car.
The first thing you want to do is gather intel: make sure your finances are in order and check the current market value of your vehicle. Then, reach out to Auto Approve to make the process smooth and simple, with no mark-ups on your rate.
In short: financing or leasing an electric vehicle today isn’t all that different from a standard gas-powered vehicle, with the exception that you’ll have to pay attention to how state and federal credit changes might shift your vehicle’s market value and how many similar vehicles are up for sale.
If you’re ready to get started with your refinance, the experts here at Auto Approve have helped over 180,000 drivers get a better rate. Let us help you find your best deal today.
