What are the benefits of refinancing a car?

I have a 17% interest rate on my car loan and my friend told me I should consider refinancing. What are the advantages of refinancing my car?

Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Wow, 17% interest isn’t exactly favorable, so your friend is probably right! You should look into refinancing your
car loan
The benefits of refinancing a car loan are numerous, including:
  • Getting a better interest rate, which translates into less interest paid over the life of the loan
  • Lower monthly payments as a result of a lower interest rate
  • Cash-out refinancing, which allows you to borrow against the equity in your car, get cash, and pay down high-interest debt
However, you should be careful when refinancing your loan. If you extend the length of the loan, you could actually end up paying more interest over the life of the loan, which is counterproductive. Since your current interest rate is so high, this likely won’t happen. But it’s best to be aware of all possibilities.
Finding the right lender to refinance your loan can be stressful and time-consuming. But
makes it simple. Just download the app to compare top lenders. Simply answer a few questions, and Jerry matches you with multiple lenders that meet your needs.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

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