Refinancing your car loan may sound like a chore. However, it can lower your monthly payments and your interest rate, saving you money. If your credit score has improved recently, interest rates have gone down, or you simply want to pay off your loan sooner, refinancing your car loan can prove beneficial. The refinancing process is easier than you think. The application process for how to refinance a car loan usually takes less than an hour, and most lenders will give you a decision within minutes.