Can I refinance a car loan?

Can I refinance an existing loan? I heard refinancing can help save me money, so I’m interested in doing this with my current loan.

Answer
Yes, you can refinance a car loan!
Reasons for refinancing a loan can include lowering the interest rate on your existing loan and making your monthly loan amount more manageable.
That said if you’ve paid off most of your existing loan, refinancing your loan won’t make a big difference. In addition, some lenders do not allow you to refinance older vehicles.
To find out if you’re eligible, the first step is to shop around from different lenders. To streamline your application process, you’ll also need these documents:
  • Social security number
  • Driver’s license
  • Recent pay stubs
  • Vehicle identification number (VIN)
  • Registration
  • Proof of insurance
If you’re able to refinance, you’ll receive a new loan agreement and terms. If you agree to them, you’ll see an adjustment in your interest rate, loan term, and monthly payments.
On average, car owners pay $85 less every month by refinancing their auto loans. See if refinancing will save you money with the Jerry app. Jerry instantly connects you with top companies based on your specific financial needs to find the best loan.
Phoebe Mah
Answered on Nov 24, 2021
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