Before refinancing your auto loan, look through the benefits to see if a refi might benefit you:
You could save money over time
If you can get approved for a lower interest rate with shorter terms, it could help you save a significant amount of money. For example, you were stuck with a high-interest loan because your credit was mediocre before. If your credit score has improved, you may be able to find a better deal now. Even if you keep the same repayment term, you could find yourself paying a lot less interest throughout your loan.
You could lower your payment
Refinancing for a longer term can help you lower your monthly payment, freeing up much needed cash for other things. However, the downside is that you’ll pay more in interest over time by dragging out your payments. For that reason, try to negotiate a lower APR if you can.