In the automobile industry, truck drivers refinance their vehicles more often than any other driver. Some of the most refinanced cars in 2018 were the Chevrolet Silverado 1500, Ford F150, Dodge Ram, and the Chevrolet Silverado 2500.
But why is that? Any car owner should plan to refinance a loan (or refi) after a year - with companies like rateGenius; any car owner can jump on a lower interest rate or a shorter length of time thanks to economic fluctuations or credit score improvements.
Out of all vehicles in the U.S., trucks are refinanced the most. Here's why that is and what that means for you, no matter what car you drive.
1. Trucks Are Built To Last, And We're Not Using Them To Capacity
Trucks were originally created for work: hauling, towing, and traveling over rough terrain, day after day, month after month, year after year. The trucks of the last few years don't see the levels of hard labor that their predecessors did. Today's trucks are designed to be more powerful than ever, but they're used most often for carpooling kids than working around the ranch.
Because of this, trucks tend to last longer than expected, even far beyond the 100k mile odometer marking.
So, what does this have to do with refinancing? When you have a vehicle that you expect to last for 10-15 years (or more), you may decide to stretch your auto loan as far as it can go. In addition, your budget may change over the span of many years, dictating that you raise or reduce your monthly payments accordingly. This gives you many years to shop for competitive refi rates.
2. They Cost More, So Loans Are Larger
From 2008 to 2018, the average price of a full-size pickup truck rose by 48%, the highest 10-year price increase of any vehicle class.
Some drivers may wind up with payments that they struggle to afford a few years down the line. By refinancing, they have the opportunity to lower those payments and ensure that they can successfully pay off their loans.
3. Trucks Have A Higher Resale Value
Full-size pickup trucks tend to hold their value well, compared to other vehicles on the market today. This allows their drivers to take advantage of excellent refi opportunities.
If you have a vehicle that depreciates quickly, you'll find that your refi options become very limited.
4. The Truck Market Is Up
Ten years ago, gas prices had soared to a painful $4.11 per gallon. By January 2019, this price had dropped to a much, much better $2.24 per gallon!
Today's trucks border on luxury. They can come loaded with heated steering wheels, full-size sunroofs, plush leather seats, and even interior mood lighting. This makes them desirable to an entirely new group of drivers… many of whom are looking for the bells and whistles of a luxury car, with the size and dependability of a pickup.
If you want to save the most money on your next car in the long run, the trick is refinancing with a company like rateGenius , who can ensure you're getting the lowest rate, no matter your vehicle.
Update: RateGenius team is offering a pre-qualification assessment to help you compare rates with no impact to your credit scores. See what your new car payment can be!