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Is refinancing a car loan worth it?

I was thinking about refinancing my loan, but I don't know if it's worth the hassle since I only have a year left on the loan. Should I do it?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Refinancing a car is often a great way to cut the amount of interest you pay. But it’s not always the right move for everyone.
If your credit score has increased, you want to save on interest, or you want to remove a co-borrower or cosigner, financing might be the right option.
However, you shouldn’t refinance your car under these circumstances:
  • You have less than a year left on your car loan
  • Your lender has a prepayment penalty
  • Your credit hasn’t improved
  • You plan on extending the loan for far longer than is financially feasible
In either case, you can save some extra cash by taking a look at your car insurance policy and comparing it to other quotes. Use the top-rated
Jerry
 app to compare quotes from over 50 different insurers to get the best rate for your car insurance needs.
More: How to get a cosigner for a bad credit car loan
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