Should You Refinance Your Car Loan?
When refinancing makes sense and how much you could save.
October 8, 2026 · 4 min read
Refinancing replaces your current auto loan with a new one, ideally at a lower rate.
Good reasons to refinance
- Your credit score improved
- Rates have dropped
- You accepted dealer financing at a high rate
Watch out
Extending the term can increase total interest. Check for prepayment penalties.
Even a 2% rate cut on a $25,000 loan can save over $1,000.