PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
When is it a good idea to refinance a car loan?
I am a mom of four kids, ranging from ages two to thirteen. Raising so many young ones has strained my budget and I want to find ways to save. Can refinancing a car loan be a good idea to save money?
Phoebe Mah · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Yes, refinancing a car loan is one way to save money and reduce your monthly payments. Be mindful that auto financing will not be the best option for everyone’s financial situation.
It is a good idea to refinance a car loan when:
- You want to lower your interest rate: You can qualify for lower rates if your credit has improved since you signed your initial loan.
- Your vehicle is less than 10 years old: Lenders limit the age of a vehicle to qualify to refinance.
- You owe less than the vehicle is worth: If you owe more than what your vehicle is worth (also known as anupside-down loan), you will not be eligible to apply for refinancing.
Starting the process of refinancing your car loan can be stressful and confusing. If you’d like some help, download the
Jerry
app and instantly be connected with top lenders that will give you the best rate for your financial situation. On average, car owners pay $85 less every month by refinancing their auto loan.Before you know it, you will be saving hundreds of dollars each month!
MORE: How to refinance a car
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
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.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
.jpg&w=64&q=75){kind=avatar}
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
