car loan depend on a few key items like interest rate, tied down period, early settlement penalty (rule of 78), cash rebates, etc. for re-finance, it used to be the in-thing few years back when some bank's car loan dun require a fixed duration or have a early settlement penalty. But now, most bank tied you down for 3 years. If you are loaning for 7 years, after 3 years, there wont be much interest for the bank to earn.