Yes, you can refinance your car loan more than once. In fact, as long as you can find a lender to approve you for a loan, you can refinance as many times as you want. There are no laws or regulations against it. However, there are a few things to keep in mind before you decide to refinance your car loan again.

Why Refinancing Your Car Loan Could Save You Money

When you refinance your car loan, you are taking out a new loan, ideally with a lower interest rate and possibly with a different term. This could lower your monthly payment and save you money in interest over the life of the loan. It doesn’t change the initial purchase price of the vehicle, but when you do this multiple times, it’s possible to save even more money. 

Ensure It’s the Right Time to Refinance a Loan

Refinancing should make sense, so you want to be sure that it’s the right move for you before you sign on the dotted line. Here are a few things to consider:

• Check your credit score – Your credit score is one of the most important factors that lenders take into account during the loan approval process. If your credit score has improved since you originally financed your car, you might be able to qualify for a better interest rate. However, if your credit score has dropped, you should hold off on refinancing until it improves.
• Wait for interest rates to drop – Interest rates are constantly fluctuating, so it’s important to keep an eye on them. If rates have changed and gone down since you originally financed your car, it might be worth refinancing to get a lower rate and save money.

• Your car loan amortization schedule – If you have a simple interest loan and have limited time left on it, it might not make sense to refinance since you’ll have already paid off the majority of interest and be working on paying down the principal. However, if you’re locked into a high interest rate and still have a considerable amount of time left on your loan, it might be worth refinancing to save money in the long run.
• Your financial situation – When you refinance, you can also change the length of your loan, which can lower your monthly payments. If you’re in a position where you need the financial relief of lower monthly payments, refinancing might be a good option for you. Conversely, if you have a higher income and are looking to clear up debt, you might want to consider a shorter loan term so you can pay off your car loan faster.

After you’ve considered all of the above, you’ll know if it’s the right time for you to refinance.

Consider the Fees

Each time you refinance, you’re taking out a new loan. That means you’ll have to pay any associated fees again. These costs can add up over time, so it’s important to factor them into your decision to refinance. Be sure to ask about any potential fees and compare them to other offers before you choose a new lender.

Additionally, some lenders might charge a prepayment penalty for refinancing. This fee is typically a percentage of your loan amount and is charged if you pay off your loan early.

Finding a New Lender When You Refinance

When you’re ready to refinance your car loan, the first step is to shop around for a new lender. This could be a bank, credit union or online lender. 

There are a few things to keep in mind when you’re looking for a new lender:

• Interest Rates – Be sure to compare interest rates from multiple lenders before you choose one. 
• Fees – As mentioned above, fees can add up over time, so be sure to ask about them upfront. 
• Reputation – Check out online reviews and Better Business Bureau ratings to get an idea of a lender’s reputation. 
• Customer Service – Find out what the customer service is like before you commit to a lender. This can be especially important if you have questions or need assistance down the road.

Once you’ve checked into these factors, you’ll have the information you need to decide which lender is best for you.

Refinance to Save

You can refinance your car loan more than once, but be sure to do your homework first to make sure it makes financial sense for you. Start by using a refinance car loan calculator and then compare rates and fees from multiple lenders to find the best deal. Remember to factor in any associated costs so you can make an informed decision that’s right for your financial situation.