Refinancing a car loan: when it makes sense

TL;DR: Refinance if your credit improved, rates fell, or you want a shorter term. Watch fees and remaining term.

Good scenarios

• APR drop ≥ 1–2 percentage points
• Current term is long and you can afford faster payoff

What to avoid

• Extending the term too much → lower monthly but higher total interest
• Prepayment penalties

Run your numbers in the calculator.