There are a variety of reasons to refinance your auto loan. Perhaps you took out your previous loan with a subpar credit score and have since cultivated a score capable of netting significantly more favorable interest rates. Maybe you’d like to lower your monthly payments by extending the term of your loan or would like to borrow some of your car’s equity for an emergency home repair.
Whatever the reason, it can be time-consuming and daunting to sift through the seemingly endless possibilities to find the best auto refinance lender for you. We’ve narrowed down the options to help you make the best choice.
RateGenius
Loan amount
$8,000 to no-max
Pros:
Aggregates 150+ lenders
Discounted rate when enrolling in autopay
All states are eligible
Cons:
Potential hard credit pull for pre-qualification (depending on the lender)
Potential $495 origination fee (depending on the lender)
Disclosed qualifications:
Debt-to-income ratio: 60% max
Annual gross income: $30,000 minimum
Mileage: 150,000 max
Loan-to-value ratio: 150% max
Compare the best auto loan refinance rates 2024
Are you familiar with the term “analysis paralysis”? If not, you’ll be well acquainted with it after spending an hour or two researching the best auto loan refinance rates.
Finding the perfect lender is a tall order. Each presents nuanced offers that, if you choose the wrong one, can result in hundreds (even thousands) of dollars in unnecessary fees and interest payments.
Here are some choices you may want to consider.
Now let’s look at some of the details about each option.
Our recommendations for best auto loan refinance lenders
RateGenius
RateGenius
Loan amount
$8,000 to no-max
Pros:
Aggregates 150+ lenders
Discounted rate when enrolling in autopay
All states are eligible
Cons:
Potential hard credit pull for pre-qualification (depending on the lender)
Potential $495 origination fee (depending on the lender)
Disclosed qualifications:
Debt-to-income ratio: 60% max
Annual gross income: $30,000 minimum
Mileage: 150,000 max
Loan-to-value ratio: 150% max
A super-easy way to quickly narrow down your options is to use an aggregator such as RateGenius. This company brings more than 150 lenders together and matches you with the optimal choice for your situation. It’s a much easier way to absorb nitty-gritty details than juggling dozens of browser tabs. RateGenius also offers handy loan calculators and daily interest rates based on various credit scores. It’s an excellent tool for someone considering an auto loan refi.
Because RateGenius works with such a large number of lenders, the approval process and fees you experience may vary. For example, some lenders will perform a soft inquiry on your credit report during pre-qualification—while others will perform a hard inquiry (which can lower your credit score temporarily). Also, you may pay an origination fee as high as $495 when securing a loan. That’s a hefty price tag considering several other options require no origination fee.
While RateGenius doesn’t specify a minimum credit score, data points online suggest that you’ll need a score in the mid 500s to qualify. You’ll find that to be one of the lower approval standards within the auto loan refinance world.
Caribou
Caribou
Loan amount
Up to $125,000
Pros:
Excellent minimum rate
Ability to prequalify
Cons:
Steep processing fee
Not available in all states
Disclosed qualifications:
Debt-to-income ratio: 60% max
Mileage: 125,000 miles (175,000 if diesel)
Loan-to-value ratio: 145% max
Social security number is required should you choose to move forward in the loan application process.
APR is the Annual Percentage Rate. Your actual APR may be different. Your APR is based on multiple factors including your credit profile and the loan to value of the vehicle. APR ranges from 5.99% to 28.55% and is determined at the time of application. Lowest APR is available up to a 36 month term, to borrowers with excellent credit, and only in Texas. Conditions apply. Advertised rates and fees are valid as of 7/24/2023 and are subject to change without notice. Insurance savings will not result from lower APR.
To check the refinance rates and terms you qualify for, we conduct a soft credit pull that will not affect your credit score. However, if you choose a loan product and continue your application, we or one of our lending partners will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Terms and Conditions apply. Caribou reserves the right to modify or discontinue products and benefits at any time without notice. Participating lenders, rates and terms are also subject to change at any time without notice. The information you provide to us is an inquiry to determine whether our lenders can make you a loan offer. If any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. We do not guarantee that you will receive any loan offers or that your loan application will be approved. If approved, your actual rate will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Offers not available in MD, MS, NE, NV, WI, WV.
Caribou works with a large number of lenders to get you the best possible deal for up to $125,000 in auto refinancing. Because of this, it’s difficult to pinpoint details such as exact qualification requirements, borrowing costs, and interest rates, as they vary with each lender.
That said, there are a few things you can know for certain. You’ll need a credit score of at least 620 to be eligible and if you’ve got stellar credit, you can expect to pay as little as 5.99% fixed annual percentage yield (APR). You can also view your pre-qualification offers without entering your Social Security number, which is a rarity among its competitors.
Caribou has great customer support that is available seven days a week. While it’s got a library of helpful resources, contact via live chat, email and phone is also encouraged. If you’ve still got questions, you can book an appointment with a loan officer.
Still, there are some things to watch out for. Most notably, you’ll pay a whopping $399 processing fee. And those living in Massachusetts, Maryland, Mississippi, Nebraska, Nevada, West Virginia, and Wisconsin aren’t eligible.
RefiJet
RefiJet
Loan amount
Up to $100,000
Pros:
Best in-class customer service
Offers cash-out refinancing
Relatively low credit scores are eligible
Cons:
Application cannot be completed online
Large origination fee
High minimum loan amount
Disclosed qualifications:
Debt-to-income ratio: 70% max
Bankruptcies: None open or discharged within 12 months
Vehicle age: 10 years or newer
Loan-to-value ratio: 160% max
RefiJet excels in hand-holding. If you’re not quite sure how to find the best option for your situation, RefiJet is a good way to begin your search. Not only does it aggregate more than 20 lenders to help you view options in a digestible way, but you’ll get one-on-one attention from a financial services representative every step of the way—including transfer of ownership with the DMV. Additionally, you can contact them every day but Sunday via live chat, email, phone, text, and an online form.
RefiJet allows you to include cash-out refinancing as part of your loan. This means that you can effectively cash out the equity you’ve got in your car and add that portion to your new loan. It can be a good idea if you want access to emergency funds, but you can be sure it’ll increase your monthly payments in comparison to what you’d otherwise have paid—or at least extend the term of your loan if you want to keep the same payment.
RefiJet charges an eye-watering $495 origination fee. And depending on which lender you end up with, you could pay considerably more in fees, too. If you don’t have the money to spot that price tag upfront, RefiJet gives you the ability to skip payment during the first two months of your loan. The catch is that those months will still accrue interest.
RefiJet gives you the ability to prequalify, but you’ll have to call the company to do it. Similarly, you also can’t complete the refinancing application process online. Not a big deal for many, but it makes RefiJet a slightly less convenient option compared to others.
LendingClub
Pros:
No origination fee
Choose your own due date
Instant online loan offer
Cons:
Unavailable in many states
Relatively low loan cap
Some cars are ineligible
Disclosed qualifications:
Debt-to-income ratio: 80% max
Bankruptcy: Must have posted more than 12 months ago
Mileage: 120,000 miles max
Loan-to-value ratio: 165% max
Unlike several other options, you can complete a LendingClub application entirely online. To boot, you can get an offer within minutes of applying. There is no origination fee, which can amount to many hundreds of dollars with competing companies. LendingClub also lets you choose your payment due date, which gives you the freedom to sync payments with your payday to help you ensure you’ve always got the money for your bill.
LendingClub has its drawbacks. The most you can borrow is $55,000. That is still a lot of money, but markedly below average. Also, those living in Alaska, Hawaii, Maine, Mississippi, New Hampshire, North Dakota, Vermont, West Virginia, and Wyoming are ineligible.
Upstart
Pros:
Above-average loan-to-value ratio
Poor credit scores are eligible
No application fee
Cons:
High starting APR
Relatively low loan cap
Disclosed qualifications:
Annual gross income: $12,000 minimum
Mileage: 140,000 miles max
Loan-to-value ratio: 185% max
With a credit score of just 510, you can qualify for an auto refinance with Upstart. That’s really generous. As a reminder, FICO considers scores up to 579 “Poor.” That means if you’ve abused your credit in the past, you might still have a shot at an auto refinance through Upstart.
Those without a credit score may even be eligible. Upstart looks at other factors—such as your level of education and your employment—to decide if you’re a worthy candidate. You may pay a high APR, but at least you might get an offer.
Upstart offers a relatively low loan cap of $60,000. And while that may sound like a good chunk of change, competing lenders offer double this figure.
LightStream
Lightstream
Loan amount
Up to $100,000
Pros:
No vehicle restrictions
No origination fee
All states are eligible
Cons:
Relatively high credit score requirements
No prequalification
Disclosed qualifications:
No exact qualifications disclosed
LightStream is, for several reasons, likely the best option for anyone with credit scores of 670 or above. It provides the ability to borrow up to $100,000 and doesn’t require a down payment or charge an origination fee.
Also, other sites demand that your car be under a certain age or have a specific number of miles on the odometer to qualify for a loan. Not LightStream. The company claims it will refinance a loan regardless.
When LightStream is deciding your interest rate, it examines factors such as your income-to-debt ratio and assets. In other words, someone with a high-600s credit score may fare better than someone with a credit score in the mid-700s.
Penfed
PenFed
Loan amount
Up to $150,000
Min. credit score
Undisclosed
Pros:
Extremely high loan cap
Extremely low minimum loan amount
All states are eligible
Cons:
Only members can apply
Credit score requirement may be relatively high
Disclosed qualifications:
Debt-to-income ratio: Undisclosed
Bankruptcy: Must have posted more than 24 months ago
Mileage: 125,000 miles max
Loan-to-value ratio: 125% max
Penfed (Pentagon Federal Credit Union) specializes in serving the military, but it’s open to anyone in all 50 states. It’s worth noting, though, that you must be a member of the credit union to receive auto refinancing. You can join by depositing at least $5 into a PenFed savings account.
Penfed offers a whopping $150,000 loan maximum. That’s tens of thousands of dollars more than you’ll find with the vast majority of lenders. At the same time, you can take a loan for as little as $500—many thousands of dollars less than what is stipulated by most other lenders. In other words, PenFed is useful for just about any loan amount.
Penfed doesn’t stipulate its credit score requirements, but data points suggest you’ll have the best shot at an approval if your score is at least in the mid-600s.
Bank of America
Bank of America
Loan amount
Up to $100,000
Pros:
Offers are immediate
All states are eligible
Discounts for prior relationship
Cons:
High minimum loan amount
No prequalification
Disclosed qualifications:
Vehicle age: 10 years or newer
Mileage: 125,000 miles max
Bank of America provides discounts for some borrowers who have an existing relationship with the bank. You can score an interest rate discount of between 0.25% and 0.5%. That’s nothing to sneeze at, and could quite easily translate into many hundreds of dollars in savings over the term of your loan.
Here’s the catch: You’ll need at least $20,000 in daily deposit balances to achieve 0.25% savings and $100,000 in daily deposit balances to save 0.5%. Probably not doable for many, but a solid benefit for those who can swing it.
A big downside with Bank of America is its minimum loan amount. The smallest loan you can take out is $7,500. If you’re looking to refinance a smaller loan, you’re out of luck.
Consumers Credit Union
Consumers Credit Union
Lender
Consumers Credit Union
Loan amount
Up to $150,000
Pros:
Optional cash-out refinancing
No vehicle restrictions
Rate discounts for setting up autopay
Cons:
Only members can apply
Not available in Alaska or Hawaii
Disclosecd qualifications:
Bankruptcy: None open
Loan-to-value ratio: 125%
To receive an auto refinance with Consumers Credit Union, you must be a member. You can open an account by paying a $5 fee to the Consumers Cooperative Association and maintaining a balance of $5 in either a share or savings account.
Consumers Credit Union offers a 0.25% interest rate discount simply for setting up automatic loan payments. Depending on the term of your loan, this could save you hundreds of dollars.
Similar to RefiJet, you can opt for cash-out refinancing—that is, you can use the equity you’ve built in your vehicle to get a lump sum of money as part of your loan. This is good if you need money for large expenses like medical bills. Just realize that doing this can increase your monthly payments or extend the term of your loan. Consumers Credit Union doesn’t prohibit you from taking a loan despite the age and mileage of the vehicle.
OpenRoad
OpenRoad
Loan amount
Up to $100,000
Pros:
Poor credit scores are eligible
Limits propagation of contact information
Above-average customer service
Cons:
Origination fee is common
Not available in every state
Possible hard credit pull for prequalification
Disclosed qualifications:
Annual gross income: $24,000
Mileage: 150,000 miles max
Loan-to-value ratio: 160%
OpenRoad is an all-around great choice for someone who needs a lot of help with the auto refinancing process. Because the company exclusively offers auto refinance loans, its agents are experts in the field. It’s also worth mentioning that the site has accessibility tools for those that need it.
You can receive a prequalification with OpenRoad, but be aware that a handful of lenders will perform a hard credit pull which will cause your credit score to temporarily dip. If you prequalify, you will get one offer and rate estimate. This is fewer offers than you’ll get from other sites, but its purpose is to keep you from being hounded by follow-ups from multiple lenders.
Even with a credit score of 500, you can still be approved for a loan. While that’s incredibly generous, scores as low as that may yield an interest rate north of 29%.
Most of the lenders that work with OpenRoad charge an origination fee of up to $199. That’s not as offensive as some competitors, but note that some lenders don’t charge any fee at all.
myAutoloan
myAutoloan
Loan amount
From $8,000 ($5,000 for refinance) and up, with no set maximum
**Pros**:
Seemingly willing to approve those with less than perfect scores
No firm ceiling on the amount of money you can borrow
No fees for applying
Cons:
Subpar customer service
Not available in every state
Disclosed qualifications:
Bankruptcy: Must be discharged or dismissed
Annual gross income: $18,000
Vehicle age: 10 years or newer
Mileage: 125,000 miles max
Another powerful auto loan refinance aggregator is myAutoloan. It boasts of its ability to provide assistance to those with less-than-perfect credit, though its general qualifications list a credit score of 600 to be approved. But because it works with lots of different lenders, each will have its own specific approval requirements.
Approval from one (or more) lenders often takes mere seconds. myAutoloan will return up to four matches for your credit profile without performing a hard credit pull on your account. You’ll only receive a hard inquiry if you decide to formally apply for the loan. While this is a good feature, it also means that you’ll likely be contacted by multiple lenders as they vie for your business—which can be annoying.
Once you’re approved, you can receive the money to pay off your current auto loan within 24 hours. That’s not standard with other options, so this is a welcome feature.
Auto Approve
Auto Approve
Loan amount
Up to $150,000
**Pros**:
Handles paperwork so you don’t have to
Prequalify with a soft credit pull
All states are eligible
Cons:
You must call to complete your application
Origination fee of up to $488
Disclosed qualifications:
Annual gross income: $24,000
Debt-to-income ratio: 50%
Vehicle age: 10 years or newer
Mileage: Just above 200,000 miles max
Auto Approve is another service that works to find a lender that best fits your situation—it doesn’t itself issue your loan.
One of its most lauded features is that it manually handles a lot of the details to guarantee you’re getting exactly what you want. For example, instead of blasting your application to tons of lenders, a loan consultant will help you to figure out which Auto Approve partners are your best fit. Then, they’ll submit your application to the lender that you choose. You’ll then be sent an agreement that simply requires an e-signature. Auto Approve will take care of anything else—including getting the title from the DMV. Also, Auto Approve allows you to add cosigners (or co-borrowers) during your refinancing process (with a few exceptions).
Gravity Lending
Gravity Lending
Min. credit score
Undisclosed
**Pros**:
No payment necessary for up to 90 days after approval
All states are eligible
No origination fees
Cons:
Prequalified rates are not revealed before a hard pull
Potentially high APR
Disclosed qualifications:
Bankruptcy: Must be discharged at least two years ago
Debt-to-income ratio: 60%
Loan-to-value ratio: 150%
Vehicle age: 10 years or newer
Another auto loan aggregator is Gravity Lending, which works with over 70 lenders to find the perfect match for your situation.
Again, each lender comes with its own specific requirements and terms. Unfortunately, you won’t be able to see the exact details of your loan before your application is submitted. When you’re matched with a lender, it will perform a hard credit inquiry to approve you for the loan.
Beyond that, Gravity Lending is very customer friendly. The application process can be completed entirely online; it charges no origination fees; it’s available in every state; the majority of its partners offer a discount when you enroll in autopay. You’ll also be put in contact with a loan officer to give you intimate assistance when you want it.
Methodology
When deciding on the lenders offering the best auto loan refinance rates, we took into account things like accessibility, available discounts for completing various tasks, initial fees, and loan amount restrictions. We also included options that tout white glove customer service to help those that aren’t confident enough to make such a weighty decision by themselves.
How to select the best auto loan refinance lender
Don’t apply out of your league
Many (but not all) lenders are transparent about the qualifications necessary to receive a loan offer. Whether your annual income would likely prohibit you from an approval, your debt-to-income ratio is sky high, or your credit score is lower than most lenders would like, it’s important to research the details of each before you submit an application. Many allow you to prequalify so that you don’t receive a hard credit inquiry for a doomed-from-the-start application.
Analyze your current auto loan
Remember why you’re refinancing in the first place: To lower your monthly payments and/or interest rate. Make sure you know your goals. Is a smaller monthly payment the single most important thing? You can look for a lender that offers a longer loan term. Though you’ll likely pay more in interest in the long run, it can free up some money for now.
Minimize fees
You may think you’re getting a good deal on an auto loan refi, but if you’re paying high fees, the loan might hardly be worth the hassle. Some common fees to watch out for are origination fees, prepayment penalties, and processing fees. Choosing the wrong lender could result in hundreds and hundreds of dollars in unnecessary expenses.
TIME Stamp: The best auto refinancing depends on your needs and credit
Some lenders are wildly generous with issuing loans to those with bad credit. Others specialize in walking you through the entire refinancing process with a professional. There are also lenders that provide discounts for maintaining sizable deposits at the bank.
Your best choice is the one that complements your current life situation. If you’re just beginning in the world of credit and don’t have much money in the bank, there’s still a loan for you.
Frequently asked questions (FAQs)
What affects your auto refinance rates?
Many factors play into the auto refinance rates you get. Elements such as your credit score, the age and mileage of your vehicle, and the length of your loan are common examples.
When is a good time to refinance your auto loan?
If you see an opportunity to save money, auto loan refinancing can be a good idea. If your credit score has increased significantly and you know you can get lower interest rates—or if you’d like to lower your monthly payments by increasing the term of your loan—consider a refi. Additionally, if you’d like to pocket some of the equity you’ve built in your car for an emergency, you can opt for a cash-out refinance.
Just keep in mind the associated fees, such as processing and origination fees, which can offset a lot of your savings.
How does loan refinancing work?
Auto loan refinancing is a brand new loan on your car with all new terms. The refinancing lender will usually send you a check to pay off your current loan. You’ll then make monthly payments toward your new loan.
Can you refinance a car loan if you have bad credit?
Yes. Some lenders accept applicants with poor credit. However, the interest rates will likely be astronomical, making an auto loan refi a last resort.
