Refinance your existing auto loan.

Many adults today rely on a personal vehicle for transportation, leading to the nearly 276 million cars that are currently registered in the United States. Car ownership can be an expensive venture, though, with the cost of both new and used cars skyrocketing in recent years.

Whether you bought your vehicle four months ago or four years ago, refinancing your auto loan can be a great way to save some money on interest. Here’s a look at why you might want to refinance your auto loan, when you can do it, and how a refi might be the best way to snag a competitive interest rate.

For borrowers looking to lower the monthly payment or interest rate on their auto loan, refinancing is an option worth considering. Through auto loan refinancing, a car owner can pay off their existing loan and replace it with a new one, which they then pay off to the lender (either a new lender or, in some rare instances, the same one as the prior loan).