Updated on May 3, 2021
You recently bought a car, but in the brief time since, you’ve noticed interest rates have dropped or you’ve had a change in your personal life. As a result, you want to refinance, but aren’t sure if it’s too soon to do so.
There aren’t any specific guidelines on when you can refinance a vehicle. You could theoretically do so just a few months after you originally financed (or sooner), which would allow you more potential to save. While you may garner a lower interest rate, your existing contract, your credit score, and other factors will impact the amount. Here are a few things to think about beforehand.
There are a number of situations in which it may make sense to refinance your auto loan, even if you recently purchased the vehicle. You may want to consider refinancing in these situations:
Say you financed your car with a 6% interest rate, but you see a lender offering 5%. Sounds like a good offer, right? Not necessarily. There are more factors that play into refinancing than just the interest rate.
Once you’ve determined that it makes sense for you to refinance, you’ll need to consider a few factors before starting the process.
If it seems like refinancing your auto loan is the right choice for you, consider joining PSECU. You can use our financial tools, like our financial calculators, to estimate your new payment. Our loan refinancing process is easy, with low rates and flexible terms to make car ownership even better.