A car loan can be refinanced in theory at any point during the period of the loan.
You could in theory we finance a car loan pretty much straight after you have taken the original loan out, though most people consider this.
It is worth saying that if for any reason you have rushed into a loan agreement someone, either the manufacturer or a lender then it is certainly worth checking even at the outset of the loan that you have got the best possible deal, and if not to look at refinancing options.
Depending upon how the loan is structured, the majority of repayment costs for the first year maybe 18 months of the loan period largely be interest payments, and as such refinancing to a better rate of interest can often result in significant savings.
The other issue concerns why people want to refinance a car loan.
There are many reasons that can occur at any point of the car loan period. One of the most common ones is that people want to reduce their monthly payments, and restructuring a car loan allows them to do this. They can either do it by getting a better interest rate, or by extending the period of the loan and subsequent reducing the amount they repay every month.
Can a Car Loan be Refinanced
Other people refinance a car loan because either their credit report has improved their credit score and they can obtain a better interest rate, or interest rates generally have dropped and a refinancing deal can effect a better rate of interest.
One of the other main reasons why a car loan is often refinanced has to do with a co-signer. Often if an individual has poor credit or no credit then a lender will require a cosigner to effectively guarantee repayment of the loan. This can honestly put quite a degree of pressure on a cosigner, and they may well come a point during the period of the loan and they want to remove themselves from it.
This can either be because they are not entirely happy with the repayment schedule of the person who has taken out the loan, or it may be that the original applicant has improved their credit score or has obtained a credit score for the first time, and is able to effectively have the loan in their own name without the need for a cosigner. In that event the financing a car loan is probably the best option.