Can I get cash back by refinancing my car?

"Can I refinance my car and get cash back? I owe way less on my car than what the car is worth and could really use some extra cash right now."

Answer
“That is not usually the main purpose of refinancing a car loan.
Typically, borrowers will refinance to save money, either on the monthly payments or on total interest charged by the end of the loan.
However, there is something that some lenders offer called a cash-out refinance, which will allow you to cash in on some of the equity that you have built up on your car.
Be mindful when refinancing that you don’t take out a longer loan term.
You also want to be mindful that you don’t take out too large of a loan against the equity of your car and risk going upside down.”
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Johnny Puckett
Answered on Jul 28, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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