PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Will refinancing my car start my loan over?
Does refinancing your car loan cause the loan to start over? I have a car loan that I've paid on for 27 months, but the interest rate is 18%. I've built my credit score to 753 during that time and my friend told me I should definitely refinance the loan. However, I have my reservations because I don't want to start from scratch.
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“No, refinancing doesn’t necessarily mean that you’re starting your car loan over.
For example, you say you’ve been making payments for 27 months. Let’s say that you started with a 60-month loan, so you’d still have 33 months to pay.
When you refinance the loan, you don’t have to start back at 60 months unless you want to. Most lenders will require a refinancing that’s in 6- or 12-month increments.
So in your case, you’d probably refinance for a 36-month loan. However, you’re more than welcome to take out a 24-month loan or another 60-month loan. The choice is yours.
Don’t think of it as starting over. In many cases, you’ll save tons of money over the life of the loan and can choose a
loan term
that fits your needs, goals, and financial situation.You can save money on car insurance, too.
Since you’re looking to refinance your car, you may want to take a look at your insurance rates. You can use a handy tool like the free
Jerry
app to help you find cheaper car insurance.”View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies