How soon can I refinance a car loan after buying a car?

Can I just refinance the car a week after buying it and get both the incentives and the lower rate? The dealership is offering some incentives to finance through them that are too good to pass up. However, I am approved for a much lower rate with my credit union.

Answer
“Yes, you usually can refinance a new car. This has been done many times successfully. But there are some things you need to watch out for or you risk getting stuck with a higher rate.

Read the dealer financing agreement.

Make absolutely sure that there is not a prepayment penalty. If there is a penalty, you are wasting your time and will likely pay more for the car than what the incentives save you.

Talk with your credit union.

Make sure your credit union is on board and check that their refinancing rates are not higher than what your pre-approved rate is.
If all this checks out, you should be good to go. Just proceed with caution and don’t tell the dealer.
No matter which route you take, be sure to shop for the best insurance rates for your new car.”
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Johnny Puckett
Answered on Jul 07, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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