Just looking at it is enough to depress you, isn't it? The payment on your new car isn't just depressing, it's a nightmare that's not going to end for five years - meaning that you are going to be pinching pennies and surviving off of mac & cheese for awhile! The new car loan rate on your "new baby" is enough to make your palms sweat - and your bank account empty. Sure, you made a few mistakes with the plastic when you were in college, but was it enough to justify an 18% APR on a $25,000 car?

But now you are stuck with that new car loan rate, right? Nothing to do now but just stick it out. It's a shame to have such a pretty car and not be able to afford actually, you know, driving it anywhere! If you are stuck with a new car loan rate that is killing you and your social life, maybe it is time to look into your options.

You must be kidding. Is there some "Do-Over" button or something?

Well, not exactly. Truth is, you are stuck with that new car loan until you pay it off. Fortunately, you don't have to wait five years for that to happen. The way to lower that new car loan rate is to go to another lender and get a better rate. Basically, you have to refinance your new car. Is this a do-over button? No. But it can save you thousands of dollars if you play your cards right.

Refinance? Are you nuts? I thought they did that with houses!

Yes, they do, and for the very same reason that you need to refinance your new car loan - to get a lower interest rate. The idea is pretty simple: you take out another loan to pay off the first new car loan. Of course, this time you might want to take a little more time and shop around for the best rates. After all, you aren't going to lower those payments on that new car unless you get a better APR than you did the first time around!

Where do I go to refinance my new car?

While traditional banks are an option, a lot of companies on the Internet can generally give you a great deal on a new car loan rate. Plus, since it is so easy to compare rates, it doesn't take a lot of time to shop around for the best deal. Just be sure to watch out for application and processing fees, which can quickly add up to a real headache when refinancing your new car.

Anything else I should know?

Now that you mention it, there is: NEVER forget that your credit score is the key to everything! Not only does this magic little number help determine your new car loan rate, it is used to get a mortgage, credit cards, and even plays a role in getting some jobs and determining your insurance rates. If your credit score is below 550, then fix it before thinking about trying to get a new car loan with a lower rate. And finally, always know what your credit score is before even thinking about shopping for a new car. That way, you won't be tempted to sign on the dotted line for a new car loan that is more likely to bankrupt you than get you off the mac & cheese!