How to Get a Better Payoff Amount on Your Vehicle

When paying off a car loan, you minimize the loan's interest amount, which can save you thousands of dollars if you pay the total loan balance in full. Otherwise, obtaining a lower payoff amount is difficult, as you signed a contract that states you'll pay the loan's full balance. You might convince your lender to take less than the full payoff amount if you pay your balance in full. Or, you can renegotiate your loan terms by applying for a lower interest rate and shorter term, which also decreases your total pay back amount.

Instructions

Paying Your Balance in Full

1

Review your finances and determine if paying off your auto loan in full is a possibility. If so, call your lender.

2

Discuss your loan pay off amount with a lending representative. The representative will initially state a payoff amount that excludes interest. Ask the representative if the lender can decrease the payback amount if you pay the total balance at once.

3

Wait for a decision from your lender, as the representative may have to speak to another person regarding your loan account. If the lender accepts your offer, make your payment as per the lender's instructions.

Refinancing for Better Terms

4

Call your lender to discuss your loan terms. If you're unable to pay off your loan balance with one single payment, aim to decrease your total payback amount by lowering your interest rate and decreasing your term.

5

Ask your lender if better interest rates are available. If not, you can search other providers and refinance your loan with a lender who offers better rates.

6

Apply for the balance of your loan with your auto loan provider or another of your choice for your total payoff amount, unless you want to provide a down payment. Discuss term options with the lending representative to determine which term is most affordable and saves you money.

7

Wait for your loan approval, which can take up to one week. If approved for a better interest rate, discuss the new terms of your loan and sign your lending contracts to obtain the new loan terms. If refinancing with another loan provider, the new lender will pay off your old one after you sign your contract.