Can I refinance an auto loan with bad credit?
Sometimes, but the “best rate” may not be the realistic rate. The goal is to avoid a refinance that looks helpful on payment but increases total cost or adds expensive fees.
When it might still help
- Your current APR is very high and you can realistically lower it
- You can keep the term similar (avoid paying longer)
- Fees are low and break-even is reachable
Common reasons it doesn’t help
- The new APR is not much better after credit-based pricing
- Fees are high and break-even is far out
- The term extension increases total interest meaningfully