Refinance your car loan at the dealer?

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Dear Driving for Dollars,
I want to refinance my car loan. Should I contact the dealership where I bought the car or should I go somewhere else? Also, will I need to spend any more money to do the refi?
— Constance

Dear Constance,
Your best bet is to go straight to a lender. You can start by calling your current lender and inquiring about its refinancing rates. Because you are already its customer, it might convert your loan to a lower rate at little or no cost to you. Even if it can, you’ll still want to research current refi rates for your area at to see if you can get a better rate with a different lender. Also, contact local lenders such as credit unions to see if they can offer you a better deal. Some lenders are offering low-cost car loans to attract new customers, so it’s possible to spend very little out-of-pocket to refinance your car loan.

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If you have a car question, e-mail it to us at Driving for Dollars. Read more Driving for Dollars columns and Bankrate auto stories.

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