Can you refinance a brand new car loan?

I bought a 2021 BMW X6. I was just curious to know if refinancing a new loan is allowed. Is it possible to refinance a brand new car loan?

Answer
Great question! While it is possible to refinance a brand new car loan, it will be challenging to find a lender that will consider an application so soon after taking on a new loan.
Since you haven’t built a history of making payments, lenders will consider you a risky applicant for a refinanced loan. Keep in mind that your credit also dipped a little as a result of applying for your initial car loan, meaning that refinancing right away won’t likely include a lower credit score. Lower credit can result in having higher interest rates on your new loan.
It’s typically best to wait at least six months before refinancing. This gives your credit time to recover and allows you to make regular payments to show new lenders.
When you’re ready to refinance, try using the Jerry app. Use our refinance calculator and avoid the hassle of searching for lenders yourself. Jerry makes it easy by finding the best lenders at the best rates. On average, car owners pay $85 less every month by refinancing their auto loan.
Phoebe Mah
Answered on Nov 23, 2021
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