Does Refinancing Start Your Auto Loan Over?

Auto loan refinancing ends your current vehicle loan and starts a new one, usually with a different lender.

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

Updated · 1 min read
Profile photo of Shannon Bradley
Written by Shannon Bradley
Lead Writer
Profile photo of Des Toups
Edited by Des Toups
Lead Assigning Editor
Fact Checked

When you refinance a car loan, you choose a new loan that has a different rate and possibly a different term. The new loan replaces your current loan, so you do start over with a new auto refinance loan.

Although refinancing starts your loan over, you can choose a new loan term that is shorter, longer or similar to what was remaining on your original loan. Loan terms offered by auto refinancing lenders vary and can range from 12 months to 96 months, but keep in mind that longer loans tend to carry higher rates.

Want to refinance your auto loan? See if you pre-qualify.

Just answer a few questions to get personalized results from our lending partners.

Check Rates

on NerdWallet

When can you replace your current auto loan?

Lenders have different requirements for when you can refinance your auto loan. Some lenders won't refinance a car loan until it has been open for six months or more. Other lenders have no set waiting period after you’ve purchased a car. However, they can’t refinance until your current lender receives the car’s title from the manufacturer or previous owner, and that can take several months.

Some lenders may also require that you have a certain amount of time remaining on your loan in order to refinance. To see a benefit from refinancing, it's best to have at least two years remaining on an auto loan. More interest is paid in the beginning of a loan term, so there is less potential for savings if you refinance too late in the term.

Refinancing a car loan is typically a fast process, with some lenders able to approve and fund the loan on the day you apply.

When should you consider an auto refinance loan?

You may benefit from auto loan refinancing in these situations:

  • Your finances have improved and your credit score has increased since taking on a car loan.

  • Interest rates for auto loans have decreased since you first got your loan.

  • You took a higher-rate loan at a dealership and think you could qualify for a better rate with a different lender.

  • You're having trouble making your monthly auto loan payment. Refinancing to a longer term can reduce your payment, but you could end up paying more interest over the life of the loan.

Auto loans from our partners

LightStream - New car purchase loan logo
Check Rate

on LightStream

LightStream

4.5

NerdWallet rating 
LightStream - New car purchase loan logo

4.5

NerdWallet rating 
Est. APR 

7.74 - 15.69%

Min. credit score 

660

Check Rate

on LightStream

Auto Credit Express - New car purchase loan logo
Check Rate

on Auto Credit Express

Auto Credit Express

Auto Credit Express - New car purchase loan logo
Est. APR 

N/A

Min. credit score 

525

Check Rate

on Auto Credit Express

MyAutoloan - New car purchase loan logo
Check Rate

on MyAutoloan

MyAutoloan

4.0

NerdWallet rating 
MyAutoloan - New car purchase loan logo

4.0

NerdWallet rating 
Est. APR 

7.24 - 35.47%

Min. credit score 

600

Check Rate

on MyAutoloan

Refinancing is an opportunity to start over with your loan, so take the time to shop lenders and find the best auto refinancing with the lowest rate. Once you have all of your offers, you can use our auto loan refinance calculator to compare and find the auto loan that will benefit you the most.

Want to refinance your auto loan? See if you pre-qualify.

Just answer a few questions to get personalized results from our lending partners.

Check Rates

on NerdWallet

MORE LIKE THISAuto LoansLoans
Get more smart money moves – straight to your inbox
Sign up and we’ll send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money.