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Advice on Auto Loan Refinancing

Mark Cappel
UpdatedFeb 19, 2009

I am having trouble refinancing an RV that we have, please provide us with any tips.

My wife and I purchased an RV in Georgia in 2002. We are residents of Florida. The RV is financed by a Bank in California. In 2008 I became unable to continue working due to a disability. I now draw Social Security disability. Our monthly income has dropped substantially and we are unable to reasonably continue to pay for and maintain our RV. We have a perfect payment record. I contacted the lender to try and work out a solution through a refinance or some sort of modification. They told me that that was not their policy. I feel that the RV is is most likely worth about half of what we owe on it. What should we do?

Most lenders won't refinance their own auto loans, so don't be discouraged by your original lender's refusal to do so. Typically auto-refinancing is done through a different lender, using the new loan to pay off the original loan.

It's great that you have a perfect payment history, but be sure to know the status of your credit report before you start shopping because the more knowledge you have about your credit, the less likely you will have a finance officer stick you into a worse auto loan than you deserve. You can learn more about your credit and how to get a free credit report at:

Additionally, pay close attention to the terms offered on the new loan so as not to end up in the same situation, or worse. Besides finding the lowest possible interest rates, beware of loans with pre-computed interest, balloon payments, and prepayment penalties.

We have a wealth of information on auto loans at I've included two links here that should provide information on the subject of auto loans:

You can also use the online Saving Center to apply for a free auto loan quote from our pre-approved lenders.

Best of luck, and I hope this information helps you Find, Learn, and Save your way to a better loan.