When you refinance a car do you start over

Refinancing does start your auto loan over. When you refinance a car loan, you choose a new loan that has a different rate and possibly a different term. The new loan replaces your current loan. Refinance terms offered by lenders most commonly are from two to seven years.

Does refinancing make you start over?

Because refinancing involves taking out a new loan with new terms, you're essentially starting over from the beginning. However, you don't have to choose a term based on your original loan's term or the remaining repayment period.

What are you doing when you refinance your car?

Refinancing involves replacing an existing loan with a new one, typically through a different lender. Most people will use it to reduce their monthly payments — either by getting a lower rate or extending their loan term. Refinancing is generally a good idea if it allows you to save money on interest.

Does refinancing hurt your credit?

Whenever you refinance a loan, your credit score will decline temporarily, not only because of the hard inquiry on your credit report, but also because you are taking on a new loan and haven't yet proven your ability to repay it.