Can you refinance a truck loan?

Discussion in 'Trucker Taxes and Truck Financing' started by desklamp, Dec 8, 2017.

  1. desklamp

    desklamp Bobtail Member

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    Sorry for the dumb question - asking for a friend. He has a 13% interest rate with monthly payments of 1400. I think it was a 4 year loan or something like that. Credit score of 680. It seems a bit high and he's barely above water right now so we are looking for ways to decrease his payment.

    Do the loan contracts typically prohibit refinancing? And if you can refinance, how do you typically go about finding a better interest rate? Any references you could share?

    Thanks in advance!
     
  2. Scooter Jones

    Scooter Jones Road Train Member

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    Pre-payment penalty clause would be spelled out in his purchase loan contract.
     
    Last edited: Dec 8, 2017
    Broke Down 69 and NightWind Thank this.
  3. NightWind

    NightWind Road Train Member

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    Actually 13% with that low of a credit score isn't that bad. I've seen companies hit people for 35%
     
  4. xsetra

    xsetra Road Train Member

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    All loans can be refinanced.

    Just need to see if there is a
    pre-payment penalty. As scooter suggested.(Penalty assessed for paying loan early)
    Some loans if you get a lower interest, you might save enough to make it worth while to refinance.
    13% for a commercial note isn't terrible.
    I have my trailer financed with my local bank. 5% 5 year note. No penalties for early payment.
    Good luck.
     
  5. Ridgeline

    Ridgeline Road Train Member

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    One reason why it is good to have someone look at the loan contract.

    I refuse financing if there is a buyout cost or a early pre-payment penalty.

    It took me a while to find a place that I could finance without one and that was my credit union. It had a higher interest rate but I paid it off two years early.
     
  6. willisl64

    willisl64 Light Load Member

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    If he is barely above water with a $1400 payment, the payment isn't the problem. He needs to haul better freight or find a different company to lease to. He should be making $1400 a day running right now.
     
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