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.

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Updated Nov 18, 2025

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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.

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.

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Does Refinancing Start Your Auto Loan Over?

When can you replace your current auto loan?

When should you consider an auto refinance loan?

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Every time.