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How many times can you refinance a car loan?

I successfully managed to improve my credit score and I’d like to refinance my loan. The thing is, I’ve refinanced my car loan once already, but it’s been a couple of years. Can I refinance my auto loan multiple times?

avatar
Lauren Smith · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
There are no set rules for how often you can refinance a
car loan
, and a better credit score can drastically reduce your interest rates. 
Refinanced vehicle owners pay an average of $85 less every month, so it’s worth your while to call up different lenders to see if they’re willing to work with you.
Here’s what to look for in your next auto loan agreement: 
  • A low
    APR
    : APR, or Annual Percentage Rate, combines interest charges, taxes, rebates, and all other fees into a holistic picture of what you’ll pay over your loan term. 
  • A shorter term
    : Keeping your loan term as short as possible minimizes the total interest charges you’ll have to pay.
  • No pre-payment penalties: Some lenders may try to recoup their lost interest charges if you prematurely pay off your loan by charging pre-payment penalties—avoid them!
Keep in mind: Refinancing several times can make new lenders reluctant to take on your loan on the chance that you'll jump ship again.
Pro tip: Refinancing a car can also
affect your insurance rates
, so you might benefit from comparing
car insurance quotes
, too.
MORE: Pros and cons of refinancing a car
View full answer 
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