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How Many Times Can You Refinance a Car?

  • Auto Refinance
  • Xavier Sabastian
  • 6 minutes

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You can refinance your auto loan as many times as you like, as long as you can find a new lender willing to lend you money. You might even save enough money to make refinancing worthwhile. However, keep in mind that fees and interest will eat up whatever savings you have.

How many times can I refinance my car loan?

The number of times you can refinance a car is unrestricted by law. However, the lender with whom you want to refinance must agree, and each has its own set of criteria. Lenders are in business to make money, and if they notice you’ve refinanced your car multiple times, they may decide not to extend you a loan.

refinance the car loan

How soon can you refinance a car?

In principle, you could refinance your automobile practically immediately after purchase because there is no legal waiting time for refinancing a car loan in any state or federal jurisdiction. Indeed, you may accept a cash refund from an automaker in exchange for manufacturer financing, then refinance at a reduced rate with your bank, credit union, or online lender.

These circumstances are most likely applicable to people who have good credit. Borrowers with bad credit may be required to prove a track record or a minimum duration of making on-time, complete payments. Before attempting a refinance, wait as least a month after purchasing a car. The dealer and your state’s department of motor vehicles may take several weeks to process your vehicle’s title and other documents.

auto refinance

When should I refinance my car loan?

If it saves you money or gets you out of a tight financial situation, you should refinance your auto loan as often as possible. This means you won’t have a cause to refinance every month or even every few months, but you might refinance your auto loan when you achieve a financial milestone – or when you experience a financial setback. A raise in pay may enhance your debt-to-income ratio, making you a more appealing candidate for lenders. A layoff and a decrease in earnings, on the other hand, may need a refinance to cut your payments.

A refinance would make sense under the following conditions: 

If you want to reduce your payment – By refinancing and securing a lower APR in the longer term, you will be able to cut your monthly auto cost.¬†You could refinance for a lower payment now, then refinance for a shorter term when your finances improve or put more money toward the loan principal (assuming there isn’t a prepayment penalty) to pay it off sooner. Both methods may save you money on interest fees.

You got a better deal –¬† One of the primary goals of refinancing is to save money on interest. If your credit score or income has improved since you first signed for your current auto loan, you may be eligible for a lower APR.

When can you refinance your car loan?

Refinance would not make sense under the following conditions:

If you hemorrhage money –¬†When you refinance a new loan, each state charges a title fee. Furthermore, different expenses, including and processing fees, will be charged by each lender. In that case, do not go for refinancing.

Your car is old – Your car is either too old or has accumulated too many miles. Your car may become ineligible for refinancing at some time during its life. For cars, most lenders will consider the age and mileage. The requirements vary, but ten years or 100,000 miles is usually the limit.

What happens if I refinance multiple times?

Do you recall getting your first car loan? Many of the same problems, as well as a few new ones, will come along. Refinancing multiple times will lower your credit score. You have a 14-day window in which you can apply to various lenders, and each application counts as a single credit inquiry, lowering your credit score slightly and temporarily. If you wait any longer to finish your loan search or accept an offer, you’ll have to fill out a new application, which will count as a new inquiry.

Your loan will become an ‘upside-down’ loan. You risk owing more than the car is worth if you refinance to a longer-term or get upside down or underwater on your loan. If you decide to sell the car later, an upside-down car loan can cause complications.

In the long run, you’ll end up paying more. If you keep extending your auto loan, the interest costs could end up costing you considerably more than the original loan.

refinance multiple times

FAQs on refinancing a car

How long should you wait to refinance an auto loan? 

Minimum of six months into the auto loan. Thus, you will have ample time to establish a history of timely payments. Prior to evaluating a refinancing application, some lenders need six to twelve months of timely payments. 

Can you refinance a car twice? 

If you have previously refinanced your vehicle, you may do so again. In fact, there is no legal restriction on the number of times you can refinance provided you can locate a lender prepared to assist you. 

How soon after refinancing a car can I refinance again? 

Strictly speaking, you can refinance a car loan once you locate a lender willing to approve the new loan. Some creditors will not refinance an auto loan until it has been open for at least six months. 

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How many times should I refinance my auto loan? 

There is no legal restriction on the number of times an automobile can be refinanced. However, the lender with whom you wish to refinance must agree, and each has its own guidelines. Lenders are in the business of making money, so if they observe that you have refinanced your vehicle multiple times, they may decide not to extend a loan. 

How can I refinance my car loan?

Find out which lenders provide auto refinancing and obtain many quotes. Check with your present lender to determine if an application would be accepted. If it doesn’t, don’t be startled; not all lenders that offer auto loans also offer auto refinancing, and some won’t refinance their loans. More information on the best sites to look for car refinancing can be found here. Don’t forget to check out what your bank or credit union has to offer. It may be simple to apply if you already have a relationship with a financial institution.

Should I refinance my car loan?

Refinancing can save you money in the short term by lowering your payment, in the long run by lowering your interest rate, or both. As long as a lender will handle the refinancing, you can refinance as many times as you desire. To assess if refinancing is worthwhile, determine how much it will cost you, including the APR in a total monetary amount. Pay close attention to any fees and the total interest you’ll have to pay.

Shopping around for the greatest bargain and ensuring you pay the least to refinance is the best approach to get the best deal.

Way.com, the all-in-one app, helps you find the best auto insurance, auto refinance, EV charging, gas discounts, best parking, and car washes near you.








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