Can I refinance a car loan multiple times?

I've refinanced my car three times already, but interest rates continue to fall. Is there a limit to how many times you can refinance your loan?

Answer
The good news is no legal limits exist on how many times you can refinance a car loan.
However, just because you’ve already refinanced three times doesn’t mean a fourth one is necessary. You shouldn’t refinance the loan if you fall under one of these situations:
  • You have less than a year left on the loan, as the hassle probably isn’t worth it
  • Your current lender has prepayment penalties
  • Your credit has gone down substantially
  • You’re extending the loan simply to get lower payments, as you’ll pay more in the long run
If you have excellent credit and can locate a better interest rate by shopping around, refinance the vehicle by all means, but your lender has to agree.
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Eric Schad
Answered on Oct 25, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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