How Can I Refinance My Toyota?

Refinancing your Toyota vehicle can save you money if you are able to qualify for a lower interest rate. Banks and other third-party lenders typically offer lower interest rates than what Toyota dealers offer through their own financing program. Through an auto refinance loan, you might be able to either lower your monthly payment or possibly pay off your loan amount sooner. There are other benefits of an auto refinance, such as the ability to extend your payment terms, add or remove a co-signer and even skip a few payments.

Instructions

1

Determine if your vehicle qualifies for auto refinancing. Certain lenders have restrictions depending on the type of vehicle (new, used), the mileage on the vehicle, the current market value of the vehicle and a minimum loan amount. If your vehicle does not qualify with one lender, try another lender or contact companies such LendingTree, RateGenius or Bankrate, which provide quotes from multiple lenders.

2

Review your credit file for any inaccuracies or negative items. Such items affect your credit scores and, in turn, can affect the interest rate on the auto refinance loan and your chances of getting approved. Dispute any erroneous information on your credit report with the three credit bureaus.

3

Contact local banks and credit unions to ask about their auto refinance programs. Compare different lenders before applying for the loan to get the best deal possible. Each lender will have different approval guidelines, and certain lenders might offer special perks.

4

Submit the auto refinance application and necessary documentation with a select lender. Wait for the approval from the lender.

5

Close on the loan and make sure your vehicle's title is updated with the new lien holder and is forwarded to your new lender. The lender will hold onto the title until all payments toward the loan have been made.