Can I refinance my car loan?

Answered by Car Loans Expert Jim on December 29, 2020

I'm making less money than I used to and I want to save wherever I can. Is refinancing my car loan an option?

expert avatar


Car Loans Expert

Yes, many lenders offer loan programs that allow borrowers to take out a second auto loan to replace their first one. This refinancing process enables borrowers to benefit from lower interest rates and improvements to their credit score.

For example, let’s say you bought your car two years ago when interest rates were high. And they were even higher for you because you had some unfavorable reports on your credit history.

Since then, you have made 24 straight on-time payments, improving your credit score. And interest rates have declined significantly as well. This means you can save substantial money by refinancing your loan.

If you decide to do this, the application process is simple, taking as little as 15 minutes online on many lenders’ websites. As is often the case with auto lenders, decisions are usually made quickly, allowing the borrower to replace their old loan and start saving money.

Car Loans

Have an insurance question?

Our insurance agents are ready to help you, for free.

Ask your question, it’s 100% free
Thousands of customers saved on average $887/year on their car insurance with Jerry
This app is great, but the customer service is even better! Not to mention convenient! My husband and I got the lowest rate (much lower than the rates I was finding online through my own searches), quickly, and pretty much all through text message! Thank you so much for a hassle free experience👍
Gabriella R.
Find savings (100% Free)
stars4.6/5 Rating on App Store