You could end up with more money in your pocket by reducing your monthly car payments. Keep in mind that if you choose to make your remaining loan term longer, the overall cost of your loan may be higher than without financing.
Another reason why it may be prudent to refinance a car is credit. Often, the amount paid monthly for a car may not fit into the current budget. In this case, a longer duration refinancing plan may be helpful. This can help drastically improve one’s credit score and reduce the risk of repossession before it is too late. When refinancing for credit reasons, be certain to find an interest rate that is lower than current finance rates or else one may wind up paying much more than necessary.
Refinancing a car with bad credit is often a good idea if your credit score has improved since you got the loan, you want to pay off the loan in a larger number of payments or you are looking to consolidate your debt. In many ways getting your loan refinanced is easier than getting the original loan.