When refinancing an auto loan, you have the opportunity to lock in a lower interest rate if you should qualify. Many people may be able to get a much smaller interest rate than they were capable of when they closed their current auto loan.
Perhaps the most common reason for refinancing auto loans, you can often significantly lower your monthly car payments. Generally, the life of the loan can be stretched, which results in each of the installments being less.
When acquiring a new loan for vehicles, as well as real estate and other items, it can be common for your payment cycle to begin a month or so after the actual loan closing. When you refinance your auto loan, you are essentially getting a new loan to replace the original loan, so you may be able to skip at least one payment.
"My monthly payment went down by almost a hundred dollars per month, and applying was so easy!"