Car loan refinancing is the process of replacing an existing car loan with a new loan, typically with different terms, such as a lower interest rate or monthly payment. The new loan pays off the balance of the old loan, and the borrower starts making payments on the new loan. Car loan refinancing can help borrowers save money on interest, reduce monthly payments, or extend the loan term. It can be a smart financial move for those who want to lower their monthly expenses, improve their credit score, or take advantage of better loan terms that may have become available since they first took out their car loan.
