If you have one
One call to the lender. Refinancing matters if your credit improved or you signed at a dealership markup.
New rate must beat old rate net of any fees; keep the TERM the same or shorter; stretching 3 remaining years back to 6 hides cost inside 'lower payment.'
Rolling negative equity into the next car compounds the hole. Drive it out, pay it down, or sell strategically.
Dealer add-ons can often be cancelled for prorated refunds, so check your contract.
Dealerships sell payments; lenders sell totals. Buy the total.
Before the next one
A credit-union pre-approval makes the dealership compete on the CAR price, not the payment illusion.
A common affordability guideline: ~20% down, ≤4-year term, all-in car costs ≤10-15% of income. Our calculator does it with your numbers.
$399/month for 84 months is not a deal; it's $33,500. Judge the number at the bottom.
Aller plus loin
What actually happens when I'm 'upside down' on a car loan?
Owing more than the car is worth ($14,000 loan, $10,000 car) narrows your exits: selling requires writing a $4,000 check to clear the title, and totaling the car leaves you paying for a vehicle that no longer exists, which is what gap coverage is for. Escapes, in order of preference: keep driving it while attacking principal until the lines cross; sell to a car-buying service and finance the small gap rather than rolling it; never, ever roll it into the next car; negative equity compounds into a hole two cars deep.
How does financing before the dealership change the deal?
A credit-union or bank pre-approval converts you from a payment shopper into a cash buyer, which reorders the whole conversation. The finance office's classic move, stretching the term until the payment 'fits', stops working when your approval fixes the rate and term already; the only negotiable left is the car's price, which is the number you wanted to negotiate anyway. Bring the approval, invite the dealer to beat the rate (sometimes they genuinely can), and let the two lenders compete. Manufacturer promo rates are the exception worth taking when real.
Sources: CFPB: Auto loans