Yes, refinancing an auto loan is always a good idea because you can save more money in the long run - as much as $1850 every year! If you took your current auto loan from a bank or dealership, you might be stuck with high monthly payments.

However, after a few months, your financial standing might've improved (along with your credit score). You can take advantage of this to refinance your car loan and score a lower APR and lower monthly payments.

While you can apply at banks, credit unions, and other financial institutions for good refinance loans, it can be tiresome to visit each of them in person (or visit each website) and inquire about your options. It's best to use an online refinance platform that shows you offers from multiple online lenders at once!

Online refinance platforms like Way.com work with a network of lenders to get you the best offers in just a few clicks. You can compare rates from multiple lenders, choose favorable terms and conditions (like co-borrowers, auto payments, etc.), and even get cash-out refinancing for immediate expenses.

Before approving you for auto refinancing, your lender will do a hard credit pull to see what APR and offer you qualify for, which may temporarily reduce your credit score by a few points. However, once approved, you can easily improve your credit score by being consistent in the monthly car loan payments.

A down payment is not mandatory for you to refinance your car loan. However, if you have a bad credit score, you may want to make a down payment to get a lower APR than your current one.

You can refinance an auto loan in the following situations:
- If your credit score has increased since you took your current loan
- If you’ve become eligible for a better loan
- If your monthly expenses have increased and you want to save money
- If you want to add a co-signer to your loan