How to Refinance a Truck

Refinancing your truck loan can provide you with extra cash each month.

Refinancing your truck loan can provide you with extra cash each month.

Purchasing a truck on credit and making timely payments helps to raise your credit score. By making your credit more favorable, you open the door to lower interest rates and more favorable loan terms. If making your truck payment every month is breaking the bank, or you simply want a lower interest rate, refinancing your truck loan can save a great deal of money each month.

Contact your current lender to determine the exact amount of your loan. Generally, your lender will supply you with a payoff amount, which includes all interest accumulated up to a certain date.

Request a quote on a refinance loan. Explain the reasoning behind your desire to refinance. If you have made all of your truck loan payments on time, your lender might provide you with a lower interest rate or extend the length of your loan to lower your monthly payments.

Visit other lenders, either online or in person, and request a refinance loan quote. Provide the lender the make, model and year of the truck, the loan's payoff amount, and request whether any additional fees or charges are associated with the refinance loan.

Keep a log of each refinance quote. Include the representative's name, terms of the loan and date the offer expires.

Compare the quotes that you received and determine which quote provides the lowest interest rate and monthly payment. Take any additional fees and charges into consideration when determining the best offer. If a lender offered you an introductory rate, recognize that the interest rate will increase as the introductory period expires.

Visit the lender who offered you the most favorable quote on the truck refinance loan. If possible, speak to the same representative who offered you the quote.

Complete and submit a refinance loan application. Depending on the lender, it might take a few days to receive a response.


  • Depending on the original lender's procedure, the lender might not offer to refinance your loan. In this case, you must refinance through a different lender, and the new lender will pay off the original loan.
  • Keep in mind that a quote is not a guarantee. The terms might change slightly depending on your credit score.
  • Consider taking a refinance loan that exceeds what you owe on your truck. Use this money to payoff other high-interest debts or purchase an extended warranty.

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About the Author

Angela M. Wheeland specializes in topics related to taxation, technology, gaming and criminal law. She has contributed to several websites and serves as the lead content editor for a construction-related website. Wheeland holds an Associate of Arts in accounting and criminal justice. She has owned and operated her own income tax-preparation business since 2006.

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