How to Refinance a Truck

Owning a truck has several benefits, the most obvious of which is the truck bed that provides much more cargo area than cars or smaller vehicles. Buying a truck with an auto loan allows you to pay for your truck over an extended period of time, commonly up to five years. If your truck loan is difficult to repay or you think you can get a higher interest rate, refinancing your truck may save you money and extend your repayment period.

Instructions

1

Review your payment history and contact your current loan holder to find out the exact amount still owed on your truck. If you have made all of your payments on time then you are likely to get a better deal on a loan refinance, but you can still refinance even if you have some late payments. Checking your credit is also important, as it will show you how much your credit score has changed since you took out the original loan on your truck.

2

Contact the bank or other lender that holds your current auto loan and request a quote on a refinance loan. Explain to them your reasons for wanting to refinance, being upfront about having difficulties making your payments in full or simply wanting to save money. Do not apply to refinance at this time, since you just want a quote to see how you could benefit by refinancing through your current lender.

3

Visit other lenders that offer automotive financing and request refinance loan quotes from them as well. Don't forget to include online lenders in your search, as some online lenders are backed by nationally recognized banks and specialize in refinancing existing auto loans. Provide as much information as you can for an accurate quote without applying for a loan, and ask whether any fees or other charges must be paid during the refinance process.

4

Compare the loan quotes you've received, looking at the quoted monthly payments and interest rates. Take special note of any introductory refinance rates, as these will increase once the introductory period ends. If there are fees or other charges associated with the loans, take these into consideration as well. Contact the lenders that offered you specific quotes that you have questions about and ask them to clarify the quote.

5

Visit or contact the lender who offered you the best quote on a refinance loan for your truck, speaking to the same individual that gave you the quote if possible. Remind him of the quoted interest rate and loan terms, keeping in mind that your interest rate may vary slightly on the actual loan depending on the credit score they receive when they run your credit during the application process. Fill out and submit the refinance loan application, and then wait for the lender to contact you concerning the loan's approval.