Many people refinance their auto loans to get lower monthly payments or lower interest rates. It is a great way to save some money or to pay lower monthly payments in case your financial situation has deteriorated.

But how many times can you refinance a car? Can you refinance a car every year? Let’s find out!

Can You Refinance A Car Every Year?

There is no standard rule as to how many times you can refinance your car loan. There is absolutely no limit on how often you can apply for refinancing. However, there are certain requirements that you need to meet in order to qualify. Moreover, the lender would want to keep your business. So if you refinance multiple times, other lenders may not be interested in taking you on.

Requirements for Refinancing a Car Loan

Here are the common requirements by lenders for refinancing an auto loan:

  • The car is less than ten years old.
  • The car has less than 100,000 miles.
  • You had the car for at least 2-3 months.
  • You pay your monthly payments on time.
  • Your credit score is good. Above 580 credit score.
  • The vehicle does not have negative equity.
  • The loan is not too big or too small.

You should know that you can not always refinance your car as you may not qualify for it. But it’s still worth applying if you meet the majority of these requirements.

When You Should Refinance Your Car Loan

Many people apply for an auto loan refinancing multiple times if they want to lower their monthly payments. This can be done by either getting a lower interest rate or by getting their loan term extended.

The best way to refinance your car loan is by getting a lower interest rate, as it would save you money in the long term. If a borrowers’ credit score has improved ever since they took out the loan, they can easily qualify for lower interest rates.

However, if you want to extend your loan period to lower your monthly payments, you will end up paying more money in the long run as you will be paying more in interest. The longer your loan term is, the more interest you will be paying. So you should only ask to get your monthly payments lowered if your financial situation is bad.


If you feel like you can qualify for auto loan refinancing, apply now and see if you are eligible. There is no limit on how frequently you can apply for auto loan refinancing.