Yes, you can refinance a car loan, but you should run the numbers to ensure that refinancing makes sense for your situation. Refinancing a car loan usually only makes sense if you’ll be significantly lowering your interest rate without extending the length of your loan. This can be difficult if you purchased a new car because you’d now be refinancing for a used car, and used-car interest rates usually exceed new-car interest rates. Good candidates for refinancing might include people who have significantly improved their credit score since securing their car loan or people who financed through a dealership and found that the dealer took advantage of them and marked up their loan to a higher rate from what the lender provided. Bad candidates for refinancing might include people who owe more money than their vehicle is worth. If you’re struggling to make payments, consult with your lender to discuss payment relief options before considering refinancing because working with your lender won’t impact your credit score.