How soon should you refinance a car loan?

I heard refinancing a car loan has many benefits like reducing the interest rate. I have a high rate of interest on my existing loan and I want to refinance. When can I refinance my car loan?

Yes, that is correct! Refinancing can offer a lower interest rate. To qualify and see the benefits of refinancing, wait about six to 12 months to refinance a car loan.
The earliest you can begin to apply for a refinance can be right after buying a car. However, most lenders are leery of accepting your application because you likely have negative equity in the vehicle, or owe more than it’s worth.
Make sure to shop around for a loan rate as well. If you can’t find a better interest rate, you have no reason to refinance the vehicle.
If you want to save more cash on top of your refinancing, download the Jerry app.
As a licensed broker, Jerry helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!
Phoebe Mah
Answered on Nov 30, 2021

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