How to Refinance a Vehicle in Southern California

If you have a car loan in southern California with a rate that is too high, you can try to refinance your auto loan to get a lower rate. Getting a lower rate when you refinance can result in a lower monthly car payment and a reduction in the amount of interest you will pay for the life of the car loan. Typically, you must refinance a balance of at least $7,500.

Instructions

1

Check the balance on your current auto loan by calling the loan company and asking for the payoff amount. Look on your recent statement to get the customer service phone number to call.

2

Gather your income details, monthly debt obligations, current auto loan account number and lender information.

3

Submit an application to your preferred southern California auto loan lenders. Do this in person or online. Banks in southern California that offer auto loan refinancing include Chase Bank, Bank of America and Wells Fargo. You can also opt to apply online through Up 2 Drive or Lending Tree (see Resources), where you can get quotes from up to four southern California lenders.

4

Evaluate the refinance offers you are approved for. Look for an interest rate that is at least 1 percent lower than your current rate. Also look at any fees associated with accepting each offer.

5

Select the refinance loan with the lowest rate and fees. Let your current auto loan company know who the new lien holder is so that the title can be sent to the new loan company. Some states require a fee to transfer the title to a new lien holder.