Can you refinance a car loan after six months?

I paid my car loan on time for the past eight months after I got bonus cash from the dealer for financing. Now I want to refinance, as I found a better rate. Can I refinance a car loan after six months?

No time restrictions or legal precedents dictate when you can refinance your loan. That said, you can certainly refinance a car loan after six months. However, you may need to wait longer in order to get positive equity in the vehicle.
Most lenders suggest waiting six months after opening a loan because it gives an applicant time to rebuild their credit and stabilize their financial situation. In addition, the borrower can also enjoy a six-month history of paying their monthly loan on time. This, in turn, can increase the applicant’s chances of getting approved for a new loan.
Keep in mind that you need positive equity to refinance a car loan, as most lenders consider even highly qualified applicants a high risk if they have negative equity. Use your amortization schedule to find your break-even point or make a lump-sum payment to get to your break-even point.
If you want to find savings on top of your refinancing, Jerry removes the hassle by giving you one app that instantly connects you with top companies to meet your insurance needs. Sign up today and become another Jerry customer that saves an average of $879 per year.
Phoebe Mah
Answered on Nov 30, 2021

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