If you have recently taken out an auto loan and are wondering whether you can refinance it, you are not alone. Many people apply for car loan refinancing early in order to get lower interest rates or lower monthly payments by extending their loan term. But can you even refinance a car that you have just bought? Let’s find out!

Can I Refinance a Car I Just Bought?

When you take out a car loan, you don’t commit to it forever, meaning that you can refinance it any time you want to accommodate your changing needs and financial situation. But how soon can you really refinance your car loan? Is it possible to refinance a car that you have just bought?

Well, most lenders require you a minimum of 6 months after taking out the loan before you can apply to refinance. They require you to wait six months and pay your monthly payments timely before they consider taking your application to refinance.

However, even if it has not been six months, you can start looking for lenders who may be interested in refinancing your car loan as soon as possible. If they see that your financial situation has gotten better and that it’s in the best interest of both parties, they may let you refinance your auto loan.

Here’s when it makes sense to refinance your car loan:

  • The interest rates have dropped when you live.
  • Your credit score has improved.
  • You want lower monthly payments.
  • You didn’t get a good deal from the dealership.

Before you make a final decision, you should know the pros and cons of refinancing your auto loan early.

Pros and Cons of Refinancing Your Auto Loan Early


  1. You can save money on interest if you get a lower rate.
  2. You will have more cash flow if you get lower monthly payments.
  3. You can pay off your auto loan faster if you get a lower interest rate and use the savings for your principal balance.


  1. You may not get a good interest rate.
  2. Your lender may reject your application to refinance if you are not eligible.
  3. You may get a prepayment penalty if you pay off your loan early.

Bottom Line

If you were wondering, “can I refinance a car I just bought?” you now know that you can refinance your auto loan even if you have bought your car just now. However, whether or not you will get it totally depends on your financial situation and your lender.