The requirements for refinancing a car are similar to requirements for getting a car loan in the first place. Refinancing your car is really just replacing your current car loan with a new one, with a goal of lowering your interest rate, reducing your monthly payment or possibly paying off your loan sooner.
Refinance lenders consider your credit and vehicle information, such as mileage, just as they would with any other auto loan. Two key differences:
Lenders may have time requirements for how soon or late in the loan term you can refinance.
Most lenders will not refinance their own auto loans.
When refinancing your car loan, it’s always a good idea to apply to more than one lender. But before you do, research each lender’s specific requirements to ensure you meet them. Requirements will differ from lender to lender, but here is an idea of what to expect.
Requirements specific to auto loan refinancing
Recency of your current loan
Some lenders won’t consider refinancing a car loan…
This article was written by Shannon Bradley and originally published on www.nerdwallet.com