Rules of Thumb on When to Refinance a Car Loan
- Wait at least 60-90 days from getting your original loan to refinance.
- Consider refinancing after six months.
- If you are a first-time car loan borrower, wait at least a year to refinance your loan.
Can you refinance a car loan immediately?
You do not need to wait any minimum amount of time before refinancing your car loan. You can refinance immediately after buying—even before you make your first monthly payment. Just be sure that you actually end up with a better deal and that refinancing doesn’t cause you to pay more for your vehicle.
How soon is too soon to refinance?
However, most lenders won’t refinance a mortgage they issued in the last 120-180 days, so you may have to shop for a new lender. Switching loan types is helpful when your situation changes. If you have a conventional loan, then a rate and term refinance should give you the customization you need.
Is it smart to refinance a car loan?
Refinancing a car loan involves taking on a new loan to pay off the balance of your existing car loan. People generally refinance their auto loans to save money, as refinancing could score you a lower interest rate. As a result, it could decrease your monthly payments and free up cash for other financial obligations.
Can you refinance your car loan with the same company?
The answer to whether or not you can refinance an auto loan with the same bank depends. While it is only sometimes possible, you should always check with your current lender first if you’re considering refinancing.
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