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When to Refinance Your Car Loan

Finance | 04/18/2025 04:00

When is the right time to refinance a car loan? Well, one could argue that it’s never a bad time to consider a car loan refinance.

Too many people assume that their auto loan is something they are locked into from the day they finance a vehicle until the end of the loan. But not so! Many people are overpaying on their auto loans, paying higher rates than they’re eligible for, or otherwise stuck with terms that may no longer make sense for their lives. That’s where car refinancing can come to the rescue.

So, Is Now a Good Time to Refinance A Vehicle?


In terms of timing, it’s always wise to check to make sure you’re not paying more than you need to be.

Given that rates and auto values have fluctuated dramatically over the last decade, and that many dealerships mark up prices so you end up paying a higher rate than you were eligible for even at the time of purchase, there’s a good chance you can lower your monthly car payment. And if your life situation has changed, you similarly may be able to save money by refinancing to a better loan for you and your needs.

To help you decide if this might apply to you, let’s take a look at some broad guidelines and FAQs for deciding when to refinance your vehicle.

When Can I Refinance My Car Loan?

Contrary to popular belief, you are not obligated to wait any amount of time before refinancing your car loan.

You have to, instead, meet the requirements for the new loan to refinance it. Time is not part of those requirements – you can refinance immediately after buying the vehicle if you want and meet eligibility requirements. Just make sure that you are pursuing a better deal than the one you already have! (That said, in some states, you need your new registration before refinancing, which may slow down the process by 4 to 6 weeks.)

If you’re unsure about your eligibility or whether or not the new loan would be better than your existing one, using Auto Approve can help.

When Can Refinancing Benefit Me?

Refinancing is basically paying off your old loan with a new one. A beneficial refinance could mean a lower interest rate, a lower monthly payment, or both.

You may be eligible for a lower interest rate if:

  • Rates have gone down since you financed your vehicle

  • Your credit score has gone up, or

  • You didn’t get a good deal in the first place

Most auto loans are amortizing loans, which means you pay a fixed monthly payment with interest that is already built into that payment. Lower interest would mean a lower monthly payment, if the terms of the length of the loan stay the same. Some people instead choose to refinance to change the length of their loan, so they pay less monthly but over a longer period of time, or pay more monthly in order to have their loan paid off sooner.

Refinancing also allows you to add or drop a co-borrower from the loan and can give you up to three month’s break in payments while the loans change over.

When you use Auto Approve to refinance, an Auto Approve representative will help you understand your options and make sure you get the right deal for your unique situation – then do the paperwork for you.

Get your free, no-commitment quote today to see how much you could save.

How can I improve my credit score?

 

This happens when you make on-time loan payments for multiple months – or years. About 10-12 months is enough time to see a change in your credit score, which you can use as leverage to negotiate a better loan rate. Learn more about credit scores and refinancing here.

blue car in front of painted grey brick wall with entrance sign. Grahame Jenkins via Unsplash

When Should I Try to Refinance My Car Loan?

NOW! Now is always the best time, if you think it might be beneficial to you. The refinance process is simple, there is no risk for you to find out your available options, and in most cases, you will be very glad you elected to move forward. With the right refinance, you can start saving money immediately.

In general, the two main reasons why people refinance their vehicles are to lower their monthly payment or lower their interest rate. So if you’re still thinking about timing, consider:

  • whether paying less monthly or overall could help you out

  • whether your circumstances have changed

  • whether vehicle values or interest rates have changed

The ability to borrow at a lower interest rate means you will pay less for your car after taking all of your borrowing costs into account. Since an interest rate is part of the monthly payment you agree to in the loan, it’s something that you should keep in mind as interest rates change over time.

What Do I Need for Refinancing My Car?

Generally, you are going to need to collect the following:

  • Information about the current loan and lender, your account number

  • Your current total loan balance

  • Vehicle information including the make, model, year, and VIN

Read more about the requirements to refinance a car.

Refinancing Mistakes to Avoid

Here are some of the most common pitfalls to avoid when refinancing an auto loan:

  • Prepayment penalties do exist, which means you may have to pay extra if you pay off a loan before a term is up. Look up the details of your loan and inquire what this fee is going to be.

  • Waiting too long to refinance. The longer you wait in the life of the loan, the less sense it makes to refinance. 

  • Lastly, don’t miss any payments. Even if you think that the refinancing process has paused your payments, triple-check before you halt payment for the previous loan. 

And that’s An Overview Of When To Refinance A Car

So, when should I try to refinance my car? Start now and discover if you’re eligible! We’re here to help.

Hopefully this guide has answered all you burning questions. As always, do your due diligence and call up your lender with questions before you make any decisions. Hidden fees, contractual obligations, and the actual value of the car should all be factored into any refinancing agreements. But, if the stars align, then there is no reason why you should not allow yourself to benefit from auto refinancing.

It’s never a bad time to check your options commitment free and discover how much you could lower your monthly payment or your interest rate.

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The Best Car Movies for Kids Who Love Wheels

It can be hard to find movies that are both suitable for kids and fun for adults, especially in the younger years when kids are super into cars, trucks, and wheels of all kinds. This list contains some of the top-rated kid-friendly car movies, whether you’re setting them up for a watch from the road, preparing for a road trip, or just planning a fun family movie night.Here are some of the best kid-friendly movies featuring vehicles and characters with wheels.Kids Movies with Cars and WheelsWe’ve included information about content suitability here, but it’s ultimately up to you to know what’s right for your child and your household rules, of course!1. Cars SeriesCommon Sense Media Age Rating: 5+ (up to 8+ depending on the film)Starting this list off with a bang, Pixar’s Cars and all its various sequels and spin-offs are probably the number one choice for parents and car-obsessed kids. There’s tons of content in the series, and all of it has the Disney-Pixar stamp of approval, meaning you know you’re getting good family fun.The series includes Cars, Cars 2, Cars 3, several TV series and short films, and the spin-offs Planes and Planes: Fire & Rescue. Cars (the original) has the highest Rotten Tomatoes score and Planes has the lowest, so prepare yourself accordingly.2. Herbie MoviesCommon Sense Media Age Rating: 7+Another well-known car-centric family friendly series, The Love Bug, its Herbie sequels, and the 2005 remake Herbie: Fully Loaded are widely accepted as car-centric kid-friendly classics. While older movies can sometimes come with discussion points about content, The Love Bug remains good family fun with little that hasn’t aged well – and Herbie: Fully Loaded might be better than some remember (or at least will keep the kids entertained).3. TurboCommon Sense Media Age Rating: 6+This animated movie about a speed-loving snail played by Ryan Reynolds may have slipped past the radar for adults without kids in 2013, but it’s a delightful little racing movie about a snail with a dream. While there are technically no cars featured in this movie – the snails themselves are the racers – it’s still a solid pick for kids that love all things vehicles as the gastropods hit the pavement. And the star studded cast, which includes Samuel L. Jackson, Maya Rudolph, Paul Giamatti, and Bill Hader, makes it fun for grown-ups too!4. It’s A Mad, Mad, Mad, Mad WorldCommon Sense Media Age Rating: 8+This beloved 1960s road race classic is a barrel of laughs for kids of all ages – and happens to feature tons of different vehicles, car chase scenes, and slapstick antics on the road. This movie skews a little older – its run time is almost 3 hours and there’s a character who drinks profusely – but things are kept light and broad. With memorable performances from Spencer Tracy, Jimmy Durante, Ethel Merman, and Mickey Rooney, it’s an old-school movie but well worth a watch.5. Tom and Jerry: The Fast and the FurryCommon Sense Media Age Rating: 5+If you haven’t thought about Tom and Jerry since you were a kid yourself, you wouldn’t be alone, but the classic cartoon is still releasing new films at a steady pace. The Fast and the Furry, a 75-minute long movie from 2005, is considered among the best, and follows Tom and Jerry racing around the world in hopes of winning a new home after accidentally wrecking their old house. Tom and Jerry fans and skeptics alike are apt to enjoy this short, zany, G-rated race movie.Kids can be expensive!If you want more money in your pocket for the things that matter most, consider refinancing your vehicle with Auto Approve. If you got your financing from a dealer, you’re likely paying a higher rate than you need to be. Auto Approve can help lower your monthly payment in just a few minutes.Get a free quote to see how much you could save.6. Rally Road RacersCommon Sense Media Age Rating: 6+A rookie race car driver, a slow loris named Zhi played by Jimmy O. Yang, tries to save his family’s home by betting he can beat a rally racing champion in this fast-paced animated movie. He trains with friends and gets help from a veteran racer (played by J. K. Simmons), and in the process sees more of the world. While Rally Road Racers will likely appeal more to kids than adults, with John Cleese as Zhi’s nemesis, there’s enough to keep parents entertained.7. The Great RaceCommon Sense Media Age Rating: 6+Like It’s a Mad, Mad, Mad, Mad World, The Great Race is a slapstick comedy from the 1960s, this one featuring a suave hero – helped along by Natalie Wood, playing a suffragette in a top-notch performance – racing a dastardly professor (Jack Lemmon, with Peter Falk as his bumbling assistant) from New York to Paris. Is it a little dated? Sure. But it’s still a family fun film built around a car chase, and a nice break from all animation all the time!Special MentionsWhile those are the top movies for car kids, there are a few more movies with prominent vehicles worth checking out!My Neighbor Totoro: For small kids who love buses, the cat bus in My Neighbor Totoro is a classicBob the Builder (series and movies): For small kids (3+) who love construction vehiclesThe Lego Movie: For slightly older kids (6+) who love construction vehiclesLooking for ideas for older kids? These movies all feature cars, trucks, driving, road trips, or car chases – and content that may be a bit more mature than some of the other options on this list. Speed Racer (8+)Back to the Future (10+)Transformers (11+)Smokey and the Bandit (13+)Talladega Nights (14+)Blues Brothers (16+)Those Are The Best Car Movies for KidsReady to drive off into the sunset with one of these picks? Whether the cars are racing, chasing, or falling in love (hello, Herbie Goes to Monte Carlo), there should be an idea here that’ll fit any wheel fanatic kid.And if not and the kids are old enough that you’re looking for something you’ll love, why not check out this list of the best road trip movies?Refinancing means more money for entertainmentThere are plenty of good reasons to want more money in your pocket, whether that’s more discretionary income for fun stuff or a little wiggle room in a tight budget. The good news is, the odds are good that Auto Approve can help you lower your monthly auto loan payment, your rate, or both!Simply tell us a little bit about your vehicle and current loan – no commitment or credit check required to get started – and you’ll be matched with an Auto Approve representative who can help you find the best deal for you, then do the paperwork for you.Get your free quote now.

The 3 Best American Road Trips To Take This Year

Thinking about a road trip this year, but not sure which of the many amazing classic American road trips to take? You’re in the right place.While it’s hard to say that any one singular road trip is the best most beautiful roast trip to take – the United States has tons of interesting terrain, stunning vistas, and cultural landmarks from sea to shining sea – we’ve compiled three favorites that you can start planning right now.There are many more great options. Traveling Route 66 or visiting the Grand Canyon are evergreen classics. But these uniquely excellent drives were selected for weather, accessibility, and combination of natural wonders and modern conveniences. American Road Trips to Take In 2025What’s the best road trip to take for you? Only you can decide that, but it’ll depend on who you’re driving with (or if you’re flying solo!), where you’re starting your journey, and how long you want to spend in the day, per car and overall. Each of these road trips can be shortened or lengthened with fewer or more stops, and each has their pros and cons. And once you’ve picked one, check out our road trip planner.1. New England: Jamestown to Acadia National ParkIf you’re craving a seaside getaway, it doesn’t get much more iconic than a drive up the New England coastline. This is a great option for summer and fall road trips. During the summer, you get cooler temperatures than much of the US, sea breezes, lobster rolls, and beach days. During the fall, you get stunning fall colors, script temperatures, bonfires, and apple pie.This is a particularly great road trip for families and those not inclined to spend endless hours in the car, since the total driving time is fairly short and the stop options are plentiful, from bustling city life in Boston to the amazing restaurants of Portsmouth, NH, and Portland, ME, to the lighthouses, ocean views, and sprawling forests of coastal Maine and Acadia National Park. Driving time (one way without stops, approx.): 6 hoursStop ideas: RI: Jamestown, Providence; MA: Cape Cod, Boston, Salem; NH: Portsmouth; ME: Ogunquit, Portland, Freeport, Augusta, Bar Harbor, Acadia National Park You won’t want to make all these stops in a row, but if you’re driving round trip, you can always see the LL Bean boot in Freeport one way and make time for Salem’s witches (or lack thereof) on the way back.One word to the wise: This road trip won’t work in the winter due to the weather in the Northeast. Driving in winter conditions doesn’t make for a relaxing vacation!2. Smoky Mountains: Asheville to MemphisIf you’re interested in a road trip through classic Americana, a trip from North Carolina to Tennessee might be just the ticket. By stopping in Nashville and Memphis, you can see much of the heart of American music history, and the barbecue across the region is iconic. And the culture isn’t half of it – this drive takes you through the stunning Smoky Mountains and is widely considered one of the most beautiful road trips you can take.Driving time (one way without stops, approx.): 8 hoursStop ideas: NC: Charlotte, Asheville, Great Smoky Mountains National Park (crosses multiple states); TN: Johnson City, Pigeon Forge, Knoxville, Chattanooga, NashvilleA few of these are out the way from the others – stopping Charlotte would really mean starting or ending in Charlotte, and Johnson City’s out of the way, but a fine place to stop if you choose to focus on exploring the Smoky Mountains.This trip is going to have the hottest weather of the options on this list in the summer, but nothing compared to what you might experience in Zion or Big Bend. The Smoky Mountains and Asheville stay pretty cool, but by the time you get to Memphis, depending on the time of year, it can get into the 90s Fahrenheit. The good news is, all these places stay relatively temperate through the winter, so there’s no bad time of year to visit.Be prepared: Cell service is weak or non-existent in some parts of the Smoky Mountains, so you’ll want to make sure you have a paper map and a well-stocked car emergency kit, just in case.3. Pacific Northwest Meets Big Sky Country: Seattle to YellowstoneWhen it comes to iconic American experiences, Yellowstone National Park is high on the list. But to get the full flavor of the Pacific Northwest and Big Sky Country, start or end the drive in Seattle. Taking time to stop in Washington’s wine country and see Puget Sound adds another incredible set of sights and experiences, and Seattle makes a great jumping off point to visit any one of Olympic, Mount Rainier, or North Cascades National Park. From there, you’re diving into the heartland, whether you want to head up to Glacier National Park, down to Grand Teton, or straight to Yellowstone.Driving time (one way without stops, approx.): 11.5 hoursStop ideas: WA: Seattle, Puget Sound, Washington Wineries, Spokane; MT: Glacier National Park, Butte Historic District, Bozeman, Big Sky; ID: Boise; WY: Grand Teton National Park, Yellowstone National Park:This is clearly the most time-consuming, robust road trip of the three. If you’re looking for a big trip, this is the one. Yes, it’s a commitment, but worth it for the stunning views and once in a lifetime experiences. Just remember, when you’re spending a lot of time in National Parks, you want to make sure you plan your road trip meticulously. Gas stations and places to stay the night can be few and far between, and some things may book up months in advance.Don’t have a ton of time but want to see Big Sky Country? You can also fly into Yellowstone Airport (WYS) and land just two miles from Yellowstone National Park.Which of These 3 Beautiful Road Trips In The United States Sings to You?There’s no wrong choice – you want to choose something that fits the amount of time you have, your budget, and your interests.Want to spend more on your dream road trip and less on your monthly car payment?Most people are paying more than they need to on their auto loan, thanks to dealership rate markups! AutoApprove can help you find a better rate in just a few clicks. Tell us a bit about your vehicle – no commitment required – to find out how much you could potentially save through refinancing. An AutoApprove representative will help you find the deal that’s right for you, and once you’ve selected your refinance, we do the paperwork for you, easy as that!That means more money in your pocket for the things that matter most – whether that’s a soul-searching solo trip or an unforgettable family vacation.Get your free quote now.

Useful Skills You Can Learn While Driving

Have you ever considered learning while you drive? Whether you want to make better use of a daily commute or are heading out on a long solo drive, if you want to learn a skill from behind the wheel, we have some ideas for you!The key to learning on the road is to choose something you can do with just audio media – and to make sure nothing you do is so engrossing that you lose focus. It’s important that you still drive safely, no matter what. Essentially, we recommend skills you can learn from an audiobook or podcast and repetitive activities that allow you to build up your knowledge or talents over time.Let’s take a look.Things You Can Learn While DrivingThe average American driver spends, according to a AAA survey, just over an hour in their car every single day. Why not find ways to be productive with all that time? Here are some things you can pick up while you drive.1. Learn a LanguageThis is probably the most popular skill to tackle in the car. Whether you’re brushing up on a language you learned in high school, preparing for a trip, trying to improve your chances at a new job, or learning just to stay sharp, there are tons of good reasons to learn a language while you drive. And, yes, while you’ll also need to supplement with written lessons, you can work on your listening and speaking skills in the car.Depending on which language you want to learn and your level, you’ll need different resources, but here are a few ideas for ways to get started:Starting from 0: Listen to podcasts that teach you the basics (for example, Pimsleur and LanguagePod101 both have podcast-based language lessons)For skill building: Listen to programs designed for language learners (for example, News in Slow is designed for people currently learning at a beginner to intermediate level to practice listening comprehension) For advanced learners: Grow your vocabulary and get closer to fluency by listening to music or news in your target language and trying to capture any unfamiliar words, phrases, or ideas2. Listen to the Sounds of NatureIf you’re interested in the natural world, you could use the time to learn things like the calls of birds local to your area. Avid birders in particular might find this interesting – and there are many resources for birders, since it’s such a popular hobby (BirdNote Daily is a good option) – but resources exist for frog fans and other animal lovers as well, dependent on your region. And there’s no reason you need to stick to your own backyard! Noisy by Nature is a kid-focused podcast that introduces the sounds of Australian wildlife (and is, frankly, fascinating for all ages).As an added bonus, nature sounds can also be relaxing, which is helpful when you’re stuck in traffic in a 20 minute slowdown.3. Write Better EmailsWhether you’re an English learner, a complete word nerd, or someone who struggled with writing in school and wants to up their email game, there are tons of great podcasts about English grammar, word usage, and how people speak. A few top recommendations include: Grammar GirlThe AllusionistVocal FriesYou’re Saying It WrongWebster's Word of the DayExpanding your vocabulary, mastering complex grammar rules, getting into the nitty-gritty of style, and discovering common malapropisms and mistakes can make you a better writer, reader, and conversationalist.4. Level Up Your Financial LiteracyThere are tons of great personal finance podcasts being made right now. If you’ve never spent much time thinking about budgeting, saving, or your own attitudes toward money, learning about the basics of finance while you drive could be a huge help!Planet Money, which covers current events in the world of money and investment, is a fascinating and informative podcast, while So Money, Money For the Rest of Us, and Afford Anything are a few of the many long-running hits in the finance space. Read reviews and find a podcast that fits your taste – and just remember, no podcast gives specific advice, so ask a professional before making big money moves!Trying to be smarter with money?You don’t need to learn any new skills to refinance your vehicle and start saving money. Most people are paying more than they need to be on their auto loan. A refinance can help you secure a lower rate and pay less. Plus, it’s easy! AutoApprove can help you find the right deal for your unique situation – and do the paperwork for you.Get a free, no-commitment quote to see how much you could save.5. Practice Using Your VoiceWhether you’re a nervous public speaker or thinking about getting into amateur opera, the car is the perfect place to get vocal reps in. There are tons of voice teachers making content online – you could find a vocal warm-up to try while you drive, or look up exercises in advance and put them into practice when the car door is closed.Whether you rehearse a presentation or sales pitch, practice improvising speeches, or sing do-re-mi, the car is a rare place where you can let yourself be as noisy as you want, take advantage of it!6. Build Your Understanding of MathRegardless of your current level of math expertise, you can skill build while in the car. Some people work on basic skills like solving simple number problems, memorizing multiplication tables, or learning more of the digits of pi. Or, if you prefer to simply listen, there are many engaging math listens that can make you fall in love with math. A few top podcast options include: The Joy of XBreaking MathMy Favorite TheoremOpinionated History of MathematicsLeveling up your understanding of math can help you see the world in a new light! And hey, maybe you can impress your friends with your new intel.7. Learn About the WorldLast but certainly not least, there are so many great educational podcasts about all manner of things, from history to economics to niche scientific fields. Taking the time to simply learn broadly about different topics that interest you wherever you can is a very productive way to spend your time in the car. Some of the best options happen to overlap with our recommended podcasts for long drives, like Ologies, 99% Invisible, The Happiness Lab, and Revolutions. But the thing that interests you most when you set out on the road is always the best option, whatever that may be – even if it’s something silly like the workings of ‘90s cars or learning to understand Morse code. Whatever you choose, expanding your worldview and learning something new is always a good choice!And Those Are Seven Useful Ways To Spend Your Driving TimeMost of us spend quite a bit of time behind the wheel, trying to make something of that time is an admirable pursuit! From language learning to amateur opera performance, there’s always something interesting to do to pass the time and challenge your mind.But refinancing your vehicle doesn’t take any time at all.You could be paying less monthly on your auto loan, putting more cash back in your pocket for the things that matter most. Find out how much you could save with just a few clicks and no commitment. Get your free quote now.
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