The soonest you can refinance a car loan after purchase is generally once the car's title, registration, and loan paperwork have been fully processed, which normally takes about 60 to 90 days. Some lenders require you to wait until this process is complete before refinancing. In exceptional cases, refinancing may be possible a few weeks after purchase if the paperwork is processed quickly. However, many lenders impose a "seasoning period," often requiring you to wait at least six months before you can refinance. This waiting period allows your credit score to recover from the initial loan application hard inquiry and gives you a chance to build some positive payment history on the original loan. Waiting six months or longer can also increase your chances of qualifying for a better interest rate when refinancing. In summary:
- Earliest refinancing: usually 60 to 90 days after purchase (when title and paperwork are processed)
- Common lender requirement: wait at least 6 months on the loan before refinancing
- Best practice: wait 6 months to 1 year to improve credit score and build payment history for better loan terms
This timing can vary by lender and individual financial situation, so reviewing specific loan terms and lender policies is important before deciding when to refinance.