Refinancing a truck

Discussion in 'Trucker Taxes and Truck Financing' started by Jeb, Apr 24, 2022.

  1. Jeb

    Jeb Bobtail Member

    13
    5
    Jan 15, 2014
    0
    Does anyone have any experience with refinancing a loan on a truck? I bought my truck 6 months ago from Arrow and financed about 60k. The APR is atrociously high and I want to refinance the loan. I have much higher income and credit now as this was the first truck I've bought, switching from company to owner operater. Any suggestions for a solid creditor who can refinance a loan at a good rate?
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. buddyd157

    buddyd157 Road Train Member

    12,139
    29,618
    May 25, 2017
    under a shade tree
    0
    are you sure you can re-fi for only 6 months into this?

    isn't it usually a full year before this can be done?
     
    Rideandrepair Thanks this.
  4. Jeb

    Jeb Bobtail Member

    13
    5
    Jan 15, 2014
    0
    No clue. If a new company is assuming the loan, I figure they would just cut a check to the original lender. The original lender does have a process for paying off the truck in full at anytime.
     
    Rideandrepair Thanks this.
  5. Long FLD

    Long FLD Road Train Member

    6,629
    23,724
    Mar 4, 2015
    0
    Make sure there’s no penalty for early payoff on the financing you got thru Arrow. If there’s not then just start shopping around. As long as you’re not upside down then you should stand a good chance of finding a lender. I’d start by asking the bank that your business account is located.
     
  6. buddyd157

    buddyd157 Road Train Member

    12,139
    29,618
    May 25, 2017
    under a shade tree
    0
    you might be right, or you might be wrong.

    can't you just contact the current lien holder for information?

    each lending institution has it's own rules.
     
    Rideandrepair Thanks this.
  7. Studebaker Hawk

    Studebaker Hawk Road Train Member

    2,667
    8,106
    Oct 18, 2010
    NW Indiana
    0
    I refinanced 3 of the 5 tractors while I owned them. In all cases the interest rates had dropped, or I had a major cost (overhaul) to deal with.
    But, in all 3 cases, the prevailing rates at most truck lenders were very similar. The only way I could get a significantly lower rate was to borrow money against the house I owned at the time. A home equity loan applied to paying off the truck. The bank doesn't care, they have a lien against the house. If things go south and you cannot repay, their money is safe.

    Truck loans, particularly for used trucks are always at higher than average interest rates. They are risky loans by lending standards.
    Your credit score, stability (length of time) at your operation, gross revenue, profit and loss sheet, condition of the truck and whether you have tattoos (that is a joke son) are factors in any lender determining the rate.
    Like has been mentioned, check to see if your loan has an early payoff penalty. It has to be clearly spelled out in the installment contract.
    If it does not, start applying for truck loans at the usual suspects and see what happens.
    I don't have a lot of optimism for finding better, particularly since the Federal Reserve is in the process of raising interest rates to battle inflation.
    It is affecting various well known stocks as well.
     
    Siinman and Rideandrepair Thank this.
  8. 77fib77

    77fib77 Road Train Member

    6,629
    31,912
    Jul 7, 2010
    St Louis
    0
    I knew some one who bought thru Arrow and he had to pay the entirety of the loan. So you couldn't pay it down early. That's illegal in some states, but not all.
     
    Rideandrepair Thanks this.
  9. Rideandrepair

    Rideandrepair Road Train Member

    14,376
    47,826
    Aug 8, 2015
    0
    Better get shopping quick. Truck values are dropping. Next will be major Banks stop financing Trucks. Once that happens getting a Refinance Loan with a good interest rate will be much harder. I’ve refinanced 2 of 3 Trucks over the years. Last Truck refinancing Loans weren’t available anywhere. Had to keep the original Loan. I’ve also refinanced cars in the past, that were paid off. Drawing money out of them. In tough lending times that’s not available either. Paying extra principal is the only thing you can do sometimes. Doing so lowers you’re actual interest rate paid.
     
    Last edited: May 29, 2022
    Vampire, 77fib77 and Studebaker Hawk Thank this.
  10. Rideandrepair

    Rideandrepair Road Train Member

    14,376
    47,826
    Aug 8, 2015
    0
    I’m considering buying a 4 yr old Wabash. Wondering what current rates are. Haven’t checked anywhere yet. Not interested in a bunch of hoops to jump through. Looking for easy 0 dn process. Done On Line. Any recent Lender info, if anyone has any, would be appreciated. Looking for under 12% interest at most.
     
    D.Tibbitt Thanks this.
  11. roundhouse

    roundhouse Road Train Member

    1,905
    3,987
    Jul 11, 2018
    0
    Or you could read the documents you signed …..
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  • Draft saved Draft deleted