Can you refinance a buy here pay here loan?

Sometimes, and it's the single best way to cut what one of these loans costs you — but two things usually stand in the way, and both are worth checking before you get hopeful.

The first is the car itself. Most lenders won't refinance a vehicle over about ten years old or past roughly 100,000 to 150,000 miles, and buy-here-pay-here inventory frequently sits outside that. The second is being upside down: if you owe more than the car is worth, a new lender is being asked to lend more than its collateral covers, and most won't.

It's still worth twenty minutes. Call a local credit union — they refinance older cars more often than big banks and they'll tell you on the phone whether the vehicle qualifies before you apply. Ask the lot for your exact payoff, and look the car up at trade-in value so you know which side of that line you're on.

One thing to check first: ask whether your contract has a prepayment penalty. If paying the loan off early costs you extra, that comes off whatever you'd save.