Is Now a Good Time To Refinance My Car Loan?

Q: Is now a good time to refinance my car loan?

A: The answer is based on a number of factors, but yes, for many people it is. According to Experian Automotive data, in the first quarter of 2026 consumers who refinanced their auto loans saved an average of 2.2% on their refinanced loan rate, which reduced their average monthly payments by $81 a month.  Experian reports that the average refinanced interest rate was 8.05%, down from 10.29%.  Credit unions played a major role in refinancing during the first quarter, with banks coming in second.

Another thing beyond interest rates to consider when it comes to refinancing your loan is your credit score. If it's improved since taking out the original loan, it's probably worth the time to to revisit your loan situation.

I always recommend refinancing a loan to lower your car payment over extending a loan even further which will add to your total interest costs over time. 

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