Check your credit score and credit report for errors
Review your current auto loan terms (rate, monthly payment, remaining balance, remaining term)
Confirm payoff amount from your lender (including any fees)
Compare current offers from multiple lenders (banks, credit unions, online lenders)
Gather required documents (pay stubs or income proof, ID, proof of insurance, vehicle info, current loan details)
Verify vehicle eligibility (age, mileage, payoff status) with each lender
Estimate the refinance cost (origination fees, prepayment penalties, title/processing fees)
Calculate the new monthly payment and total cost over the loan term
Ensure the new loan term aligns with your goals (lower payment vs lower overall cost)
Confirm you can refinance without a prepayment penalty or account for any penalty
Apply for the refinance and provide requested documentation
Shop for the best rate and terms; request the final offer in writing
Accept the offer and sign required disclosures and loan documents
Schedule vehicle insurance coverage as required by the new lender
Complete any lender-required verification (employment, income, vehicle valuation)
Ensure the new lender pays off the old lender (direct payoff)
Confirm the old loan is closed and obtain a payoff confirmation
Update automatic payments to the new lender
Keep records of the payoff, new loan agreement, and payment confirmations
Set reminders for the first payment and monitor the account for accuracy