Q:

What are the steps to refinancing a car?

A:

Quick Answer

Refinance a car by getting gathering information on the current loan and vehicle, shopping for and applying for the new loan, and contacting your insurance company. Additionally, ensure that the new lien holder pays off the original loan.

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What are the steps to refinancing a car?
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Full Answer

  1. Gather the necessary information

    Contact your current lender, and ask for the current payoff amount of the loan. Ask how long this payoff amount is good for. This is the amount of time that you have to obtain the new loan. Additionally, get the vehicle identification number from the car. This is located on the inside portion of the door or on the dash near the windshield.

  2. Shop for a new lender to make a new loan application

    Shop around for quotes from lenders until you find terms that you like. Provide them with the information you gathered as well as the year, make and model of the vehicle. Apply for the loan, and wait for approval.

  3. Contact your insurance company

    Call your automobile insurer, and inform the company of the new lender's name, address and loan account number.

  4. Verify payment of the old loan

    When you sign the loan documents, request that the new company mail you a copy of the payoff documents. When you receive them, call your old lender to ensure that the loan has been paid.

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