If you feel that you are paying too much interest on your car loan, maybe it would be smart to refinance. You might be able to take advantage of lower loan rates to reduce your monthly payment and reduce the total you will pay for the car. It takes a little work. If you owe at least $7,500 and have longer than two years remaining, it might be a good thing to refinance. If rates have dropped as little as 1 percent, you might profit from refinancing.
If you can get refinancing, then the new lender will pay off your old loan, and you will start with a new payment schedule.
The best place to start would be your current lender, but there are lots of companies who make their business refinancing car loans for people like you. If the current lender will refinance, that might be the quickest and easiest way. If you want to get a new lender, compare rates for several companies to get an idea of the cost.
Remember, there may be some upfront costs associated with this loan, but don’t pay fees for an appraisal, loan application or credit check. When you have a good looking proposal from a lender, add up the total costs over the length of the loan to see how much you are really paying. Then compare it to the total cost of your current loan. Are you coming out ahead?