How Many Times Can You Refinance Your Car?

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There are no limits on the number of times you can refinance your auto loan—but there are certain expectations and requirements you must meet before you can do so.
When you refinance a loan, you replace the existing contract with a new one that has different terms and conditions. This could mean better interest rates or a longer-term. It can be useful to refinance when you’re faced with a new loan that saves you more money. 
Even if you think you’re saving money, sometimes refinancing multiple times can impact your credit score or end up making you pay more in the long run—so be sure to do your research before you make any decisions!
While refinancing your auto loans can be a complicated process, finding affordable car insurance can be easy if you know where to look. It takes less than 45 seconds for the Jerry app to gather quotes, find the policy that suits you, and secure you savings. 
Jerry can even help cancel your old policy! So you get all of the savings and coverage without any of the usual stress.
Continue reading to learn more about auto loan refinancing. 

How to refinance your car loan

The first step to refinancing your car should always be researching lenders and the auto plans they are offering
Your current lender may or may not offer to refinance your loan. Be sure to also check with your bank or credit union—if you have a good relationship with either of them, your chances of getting your refinancing approved will be greater.
In order to get the widest scope of savings possible, make sure to get as many offers as you can!
Some common requirements for refinancing a car loan include:
  • Vehicle has less than 100,000 miles.
  • Vehicle is less than 10 years old.
  • Your auto loan is at least a year old.
  • You’re up-to-date on monthly payments.
  • You have a good credit score (or it has improved since you initially took out the loan).
Key Takeaway Make sure to contact your bank or credit union before attempting to refinance your loan. 

When should you refinance your car loan?

You should only refinance as often as it saves you money. So this usually means not every month or even every few months.
Aim to refinance when you have a financial accomplishment or success, or if you experience some sort of financial setback.
You technically can refinance immediately after you get your car, but we don’t recommend attempting it. It can take a few weeks after you purchase your car for your title and paperwork to go through, so trying to refinance might just complicate things.

How many times can you refinance a car?

There are no legal limits to how many times you can refinance your car.
But repeatedly refinancing your car can end up hurting your future loan applications. Lenders can deny you for a multitude of reasons, such as if you have a poor credit history or if you don’t meet some (or any) of their requirements.
Some lenders will deny an application if they see you’ve refinanced multiple times. This can lead them to see you as an untrustworthy borrower, and they won’t want to take the risk of approving you for refinancing.
Key Takeaway There are no limits on how many times you can refinance your car, but repeatedly doing so can hurt your future loan applications. 

Pros and cons of refinancing multiple times

There are a few things to keep in mind if you are considering refinancing more than once.


  • You will (hopefully) end up paying less interest.
  • Your monthly payments will be lower.
  • You can extend the term of your loan, giving you more time to pay it off.


  • You’ll have to pay a title fee when taking out a new loan.
  • Lenders may charge additional fees for refinancing.
  • If you wait longer than the standard 14-day window in which you can apply to multiple lenders and it’s considered a single credit inquiry, then your credit score can drop.
  • You risk owing more than what your car is worth and becoming “upside-down” on your loan.
  • Extending your car loan can lead to you paying more in the long run.

How to save money with Jerry

If you’re looking for a guaranteed way to save money on your car, but don’t want to worry about the risks that may come with refinancing multiple times, then Jerry is the way to go.
Jerry is your ultra-talented car insurance broker for life. It’s this simple: download the app and, in less than 45 seconds, Jerry will collect all of your information from your existing insurer. 
Choose from competitive quotes from 50+ top insurance companies and Jerry takes care of the rest—securing your new policy and helping you cancel your old one. 
No long forms. No calling around. No hard work. Just savings. The average Jerry user saves $879 a year on car insurance.
“This app is all about savings! Jerry just saved me $193/month on my car insurance. They literally found me the cheapest policies out there and with better coverage! Seriously, just sit back and watch Jerry work its magic.” —Rachel B.


While it’s still possible to refinance your loan if your credit is poor, it will be far more difficult. 
If you do have bad credit, getting a copy of your credit report is your first step to improving it.
You might want to consider adding a cosigner, connect with a lender that is more forgiving, or even trade-in your car if you are unable to refinance and are struggling to make payments.
Refinancing means replacing your existing loan with a completely new one (that, ideally, is a better deal).
Consolidating, on the other hand, means you take out a new loan to pay off two or more of your existing loans. 
Loan consolidation can make it easier to keep track of your payment day(s), and having more consistent payments can help gradually improve your credit score as well.
Be sure to do your own research before deciding which of the two options will suit your needs better.

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