When should I not refinance a car loan?

I was thinking about refinancing my car loan, and I've read about all the benefits. But is there a time when I shouldn't refinance?

Answer
Although refinancing a car loan can be really beneficial, it might be better to wait or rethink refinancing entirely if:
  • You have less than one year left on your car loan, as it probably isn’t worth the hassle
  • You have a car that’s older or reaching 100,000 miles
  • The current loan has prepayment penalties
  • You recently bought the car and your credit score has a temporary hit
If you still want to save some cash without refinancing, take a look at your car insurance policy and then compare rates with Jerry. With the Jerry app, you can compare quotes from dozens of car insurance companies to make sure you always get the best rate possible.
Eric Schad
Answered on Nov 04, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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