You can refinance your car loan typically after your car's title and registration have been processed and transferred to your lender, which usually takes about 60 to 90 days after purchase. Some lenders may allow refinancing a few weeks after purchase, but most require waiting until the paperwork is complete. It's generally advised to wait at least six months before refinancing a car loan. This allows your credit score to recover from the initial loan application hard inquiry and can help you qualify for a better interest rate. Also, waiting six months provides more lenders to choose from and better refinancing offers. Additionally, many lenders prefer that you have at least two years left on your loan term to maximize savings from refinancing, as interest is front-loaded early in the loan. In summary:
- You can refinance after title transfer (about 2-3 months)
- Best to wait at least 6 months for credit recovery and better rates
- Ideally, refinance when you have at least two years left on the loan term
Check your current loan terms for any prepayment penalties or seasoning periods that may affect the timing. This timeline and advice can help you decide when to refinance to get better terms and potentially lower your monthly payments or interest rate.
