How long do you have to wait before refinancing a car loan?

I heard that APR is constantly changing. I think I could get a better deal than I’m getting now. How long do I have to wait before trying to refinance?

Answer
You’re right in that your annual percentage rate, or annual interest rate plus fees, changes frequently and you can get a better deal by going through the auto refinance process.
After you get a car loan, you should generally wait a couple of months, unless you have good or great credit (usually 700 and above).
It’s normal to wait two or three months because that’s how long it takes for your car title to be transferred and for the lender to complete all required paperwork.
The higher your APR is, the more likely you are to fall into debt. Refinancing allows you to take out a new loan on the existing loan and bring down your APR.
If you need to free up some extra cash, it’s easy to find hundreds of dollars of annual savings on your car insurance policy with Jerry.
Lauren Smith
Answered on Nov 15, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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