What Does Refinancing a Car Loan Actually Mean?

I recently learned that refinancing car loan basically means replacing your current car loan with a new one that may offer better terms.

A lot of people do it to reduce monthly payments, get a lower interest rate, or adjust the loan period. It seems helpful especially if your credit score has improved since taking the original loan.

I didn’t know this was such a common thing until recently. Has anyone here refinanced their car loan before? Was it actually worth it in the long run?