Can you refinance a car loan?

Even the most experienced of borrowers and financial mavens may not realize that the term "refinance," commonly used in conjunction with home mortgages and lenders, can also be applied to car loans. More importantly, yes, you can refinance your car loan in an effort to get yourself a better interest rate, a lower monthly payment, or possibly both. The only thing that is essential is that most lenders will require that you don't have an upside down auto loan (owing more than the vehicle is worth).

If you do decide refinancing your auto loan is not the right choice for you, consider paying off your loan quicker, which will essentially reduce your interest rate.