Lower your rate. Reduce your payment. Take control of your car loan.

ElitePersonalFinance makes auto loan refinancing easy.

We partner with trusted auto refinancing marketplaces that match you with lenders based on your current profile — not just the credit score you had when you bought your car. With one secure application, you can compare real refinancing offers and decide if switching loans makes sense for you.

• No pressure, no upfront fees
• Fast online approval process
• Works for good, fair & bad credit
• Designed to help borrowers make smarter decisions

Our rates start from 1,99% for an excellent credit score. And it is free.

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Best Refinancing Auto Loans of January 2026

One of the most innovative ways to lower your monthly car payment is to refinance your auto loan. Today, there’s no shortage of legit, reputable refinancing auto lenders that let you pre-qualify online with no fees and instantly compare offers in minutes. Whether you’re looking for a lower APR, a longer loan term, or much-needed financial relief, no matter if you have excellent, good, fair, or bad credit, refinancing can really change your monthly budgeting.

Why Should I Trust ElitePersonalFinance

At ElitePersonalFinance, we take pride in helping people refinance their auto loans that no longer serve them due to astronomically high APRs. Too short repayment terms are rigid conditions. To reconfigure your auto monthly payments, all you need to do is complete a soft credit check and provide a few documents, working with reputable lenders that offer transparent pricing and long-term savings.

From big names like RateGenius and Caribou to Credit Unions like Navy Federal, ElitePersonalFinance has conducted extensive research so that only the most reputable lenders are available to you. Now is never a better time to refinance and take advantage of flexible underwriting so that your auto loan no longer puts you underwater with your budget every month.

Keep reading as ElitePersonalFinance walks you through the top refinance lenders of 2025, including top features to look out for, pros and cons of refinancing auto loans, how to qualify, ways to improve your credit score, and all of the steps you take to lock in the lowest APR possible.

RateGenius

More than 350,000 drivers have leveraged the RateGenius network of auto refinance lenders, offering APRs from 6.49% to 17.99%, resulting in savings of $80 to $100 per month or more. According to the RateGenius website, borrowers earn an average savings of $125.48 per month.

What sets RateGenius apart is its extensive lender network, which offers a greater opportunity to find competitive rates, even if you have fair or limited credit. Plus, documentation turnaround is quick, with high approval rates, no matter whether you have older vehicles or higher mileage.

With more than 20 years in the refinance market, RateGenius is one of our preferred options.

What We Like:

• More than 150 participating direct lenders
• APRs start at 6.49%
• Experience a dedicated loan specialist on call
• Excellent approval rates for fair credit applicants
• More than 20 years in the business

What We Don’t Like:

• Not available in every state
• Rates vary depending on the lender
• Vehicle restrictions vary widely by lender

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Matching lender-specific mileage and vehicle age guidelines
• Proof of income
• Pre-qualified through the RateGenius portal to compare lender offers

Terms: RateGenius partners with more than 150 lenders to provide auto refinance APRs ranging from 6.49% to 17.99%, depending on credit, vehicle mileage, and lender guidelines. According to RateGenius, borrowers save an average of $125.48 per month, with many achieving reductions of $80 to $100 or more based on loan size and creditworthiness. Final APRs and repayment terms vary by participating lender. Always read your official loan estimate before signing the contract.

SuperMoney Refinance

One of the leading finance SuperMoney Refinance, which allows you to instantly compare competitive Auto refinancing offers across some strong names and some lesser-known names, including but not limited to RateGenius, iLending, OpenRoad, Upstart, Upgrade, and hundreds more.
It easily allows borrowers to compare estimated monthly payments, fees, and lender requirements side by side, helping them make better-informed decisions.

Note, traditional refinance services will pitch you into their services. However, SuperMoney isn’t a direct lender but a middleman that delivers multiple customized offers. If you’re looking for maximum transparency without working with a commission Loan Consultant, then.
SuperMoney is an excellent place to start

What We Like:

• APR starts at 5.99%
• No fees to use the platform
• Complete transparency with terms and fees
• Soft credit check for pre-qualification
• Easy to compare multiple loan offers side by side

What We Don’t Like:

• Not a direct lender
• Varying offer quality amongst participating lenders
• No in-person Loan Consultants
• Strict vehicle restrictions vary by lender
• Most applicants are not eligible for the maximum loan amounts

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Must meet individual lender vehicle guidelines
• Provide loan and vehicle information
• Complete pre-qualification through SuperMoney to view matched offers

Terms: SuperMoney is an online refinance marketplace offering auto refinance APRs starting at 5.99%, depending on the lenders you’re matched with. Borrowers can compare monthly payments, lender fees, and underwriting requirements side by side using a soft credit check. APRs, terms, and eligibility vary widely between lenders. SuperMoney itself charges no fees to use the platform. Always read your official loan estimate before signing the contract.

iLending

Based in Centennial, Colorado, iLending is a highly rated Auto refinancing provider that has helped more than 60,000 families refinance their vehicles to take advantage of lower rates. On the platform, any existing one with a balance over $7,500 can be refinanced with additional perks such as vehicle service contracts and GAP waivers to protect against total vehicle loss.

Plus, iLending offers borrowers dedicated Loan Consultants who can be reached by phone. Minimum requirements for refinancing your vehicle include having a car with a model year of 2009 or newer, no more than 150,000 miles, a minimum credit score of 560, and a minimum refinance balance of $7,500.

All in all, if you have a challenging credit history or a high-interest existing loan, then we highly recommend checking out iLending

What We Like:

• APRs starting around 5.99%
• Dedicated one-on-one Loan Consultants
• Extensive lender Network for fair to bad credit borrowers
• Minimal restrictions on vehicle age and mileage
• Named one of the Best Places to Work by the Denver Business Journal

What We Don’t Like:

• Not a direct lender
• Not available in all states
• Not the fastest funding times
• Rates vary depending on the matching lender
• Limited consultant availability during peak hours

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Current loan details and vehicle information (age/mileage)
• Completed application through iLending’s online form to be paired with a loan consultant

Terms: iLending offers auto refinance options with APRs typically starting around 5.99%, with exact rates determined by lender partners based on credit, vehicle age, mileage, and loan amount. The platform requires a minimum refinance balance of $7,500, a vehicle year of 2009 or newer, and generally no more than 150,000 miles, though individual lender guidelines may differ. iLending is not a direct lender and does not operate in every state. Always read your official loan estimate before signing the contract.

EdFed (Educational Federal Credit Union)

Based in Florida, EdFed offers highly competitive Auto refinancing programs that let you cut your APR by 1% when refinancing an excellent, good, fair, or bad credit auto loan from another lender. Everything is managed in-house, with healthy perks for members, including a 100% cash-back credit after funding and transparent, credit-union pricing.

One of the best things about EdFed is its APR reductions through its Swap & Drop program, which lets you cut up to 1% off your current rate, with a minimum APR of 2.75%. Plus, the NCUA federally insures all funds, and there’s no Marketplace middleman here; only accurate in-house writing that takes into account your financial situation. Plus, it offers other products, e.g., auto, mortgage, home equity, and personal loans, that you may want to take advantage of.

What We Like:

• APR reductions through EdFed’s Swap & Drop program
• Qualifying refinances get $100 post-funding credit
• Federally insured by the NCUA
• Additional products available, e.g., auto, mortgage, home equity, and personal loans

What We Don’t Like:

• Limited to eligible Florida residents
• Not available in all states
• Loan must be open for 14-day minimum to receive $100 credit

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Current loan details and vehicle information (age/mileage)
• Completed application through the EdFed portal

Terms: EdFed’s Swap & Drop refinance program allows borrowers to reduce their current APR by up to 1 percentage point, with minimum APRs starting at 2.75%, depending on credit union underwriting standards. All auto refinance loans are serviced in-house, with eligibility limited to Florida residents meeting EdFed membership requirements. Borrowers may qualify for a $100 post-funding credit if their refinanced loan has been open for at least 14 days. Always read your official loan estimate before signing the contract.

Upstart

With more than 3 million customers to date, Upstart is known for its AI-driven underwriting model, making it one of the most intuitive platforms for borrowers who want to qualify based on external factors such as education, job history, and cash flow.

Kudos for its auto refinancing APRs, which generally go from 5.22% to 17.99%. Note: Upstart is not for people who are looking to finance a new vehicle, but only for refinancing.

Plus, Upstart is widely known for its stellar customer support, earning more than 21,000 5-star reviews to date, underscoring its commitment to a clean digital experience that makes Auto lending a breeze for first-time Borrowers.

What We Like:

• AI-underwriting system
• Competitive refinancing APRs from 5.22% to 17.99%
• Near-instantaneous funding decisions
• 21,000+ 5-star Trustpilot reviews
• Easy and intuitive digital application process

What We Don’t Like:

• No loan for new or used vehicles (refinancing only)
• Extra documentation is required from some lender partners
• Vehicle age and mileage restrictions apply

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Stable income
• Must meet Lender-specific age/mileage guidelines
• Completed pre-qualification through the Upstart portal

Terms: Upstart uses AI underwriting to offer auto refinance APRs ranging from 5.22% to 17.99%, based on income, education, employment stability, credit profile, and type of vehicle. Upstart only offers refinancing and does not offer new or used auto loans. Vehicle age and mileage restrictions vary by lender partner. Final loan terms depend on Upstart’s partner lenders and may differ from estimated pre-qualified offer ranges. Always read your official loan estimate before signing the contract.

Caribou

One of the most well-known auto-refinance marketplaces around, Caribou, is an excellent choice if you want to get matched with multiple refinance offers at once. According to Caribou, its members saved an average of $151 per month on the platform between July and September 2025. The actual results depend on several factors, such as your credit score and the terms you choose.

What we really appreciate about Caribou is its pre-qualification, which takes less than 5 minutes and uses a soft credit inquiry. Plus, you can take advantage of other optional protections, such as cosmetic care plans and total loss coverage, which may be important to you.

All in all, Caribou is an excellent choice if you’re looking for a legit Online Marketplace with easy pre-qualification and optional protections.

What We Like:

• Soft-pull pre-qualification with online form
• An extensive network of lenders
• Average customer savings of $151 a month
• Add-on protection products are available

What We Don’t Like:

• Not a direct lender
• Lowest APRs for the strongest credit only
• Rates and eligibility depend on the lender
• Optional add-on products can bump up your loan cost
• Not available in MD, NE, NV, or WV

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Stable income
• Must meet lender-specific age/mileage guidelines
• Completed pre-qualification through the Caribou portal

Terms: Caribou offers auto refinance options through its lender network, with average borrower savings of $151 per month (July-September 2025). APRs and repayment terms vary widely between lenders, with the lowest APRs reserved for borrowers with excellent credit profiles. Caribou is not a direct lender and does not operate in MD, NE, NV, or WV.  Always read your official loan estimate before signing the contract.

LendingTree

As one of the most popular Auto refinancing platforms in the United States, LendingTree claims to have funded with APRs as low as 3.5%. It’s an extensive network of more than 300 lenders, allowing you to instantly compare rates with a soft credit check for quick qualification, with no impact on your score. You can receive multiple loan offers in minutes, along with ongoing support and educational resources to help you thrive with your next auto refinance loan.

Keep in mind that LendingTree is not a direct lender, but a Marketplace, so it does not have complete control over approvals and rates. Plus, expect the lowest rates to be limited to borrowers with excellent credit, whereas other lenders may charge fees or have stricter vehicle eligibility requirements that vary by state.

All in all, LendingTree is a good choice for any borrower looking to lower their monthly payments by shopping multiple lenders at once on a transparent, easy-to-use platform.

What We Like:

• An extensive network of 300+ lenders
• APR starts at 3.50%
• Soft credit pull for pre-qualification with no credit score impact
• Ability to compare multiple loan offers in minutes
• Ongoing support and educational resources

What We Don’t Like:

• Not a direct lender
• Offers and availability vary by state
• Average reported savings depend on your credit score, vehicle, and other factors.

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Stable income
• Must meet Lender-specific age/mileage guidelines
• Completed pre-qualification through the LendingTree portal

Terms: LendingTree provides access to more than 300 refinance lenders, with auto refinance APRs starting around 3.50%, depending on credit strength, lender availability, and vehicle details. LendingTree is a marketplace only, so APRs, fees, and eligibility requirements are determined by participating lenders and differ by state. The lowest advertised rates typically apply to borrowers with exceptional credit and newer vehicles.  Always read your official loan estimate before signing the contract.

OpenRoad

Based in the Dallas-Fort Worth area, OpenRoad Lending is a reputable auto refinance company with more than 15 years in the game, helping hundreds of thousands of borrowers save, on average, around $105 a month when using the platform.

One of OpenRoad’s biggest draws is its dedicated customer support, comprising Refi Savings Experts who work alongside borrowers to help them secure the lowest possible rates, with no application fees and no hidden costs. Plus, it has received numerous accolades, including recognition as a “Best Place to Work” by the Dallas Business Journal and inclusion on the Inc. 500 list of the fastest-growing private companies.

Kudos to OpenRoad for its average 4.7 out of 5-star rating on Ravecapture, with close to 4,000 reviews to date.

What We Like:

• More than 15 years in business
• Borrowers save an average of $105 a month
• Average 4.7 out of 5-star rating on Ravecapture
• Recognition as a “Best Place to Work” by the Dallas Business Journal
• A+ accredited by the BBB

What We Don’t Like:

• Savings and rates depend on the lender
• All refinancing products are available in all states
• Not the highest rates compared to marketplaces
• Only works for refinancing existing loans, not a new car purchase

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Stable income
• Must meet lender-specific age/mileage guidelines
• Completed pre-qualification through the OpenRoad portal

Terms: OpenRoad Lending offers refinance loans through its partner network, with borrowers saving an average of $105 per month, depending on credit score, loan amount, and vehicle type. APRs and terms are set by individual partner lenders, and availability varies by state. OpenRoad charges no application fees and provides personalized support through Refi Savings Experts. Approval depends on meeting lender-specific credit, income, and vehicle guidelines. Always read your official loan estimate before signing the contract.

Navy Federal Credit Union

For one of the leading auto refinance credit unions in the United States, look no further than Navy Federal Credit Union.

Refinance rates start as low as 3.89% APR for new vehicles, along with repayment terms up to 96 months. As of this writing, Navy Federal Credit Union is offering a $200 bonus when you refinance an auto loan valued at $5,000+ from a competing lender. APRs for used vehicles are slightly higher, ranging from 4.79% to 5.39%, depending on the repayment term (12 to 72 months—generally, the shorter your repayment term, the lower the APR).

Another thing to keep in mind about Navy Federal Credit Union is that it is reserved for military members, veterans, and their families. Over the past several decades, they’ve enjoyed stellar service that has racked up numerous accolades, including from Forbes, Gallup, and the CXPA (Customer Experience Professionals Association) Customer Service Awards.

All in all, Navy Federal Credit Union is a rock-solid choice for low APRs, flexible loan terms, and exceptional customer service.

What We Like:

• APRs start at 4.54%
• Flexible repayment terms up to 96 months
• Recognition by Forbes, Gallup, and the CXPA (Customer Experience Professionals Association)
• No prepayment penalties or hidden fees

What We Don’t Like:

• Exclusively for military members and their families
• Slow underwriting during peak periods
• Not as digital-centric as Allianz Credit Union

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Vehicle must meet age and mileage guidelines
• Retired or active duty military member, family member, or DoD employee
• Complete an application through the Navy Federal Credit Union website

Terms: Navy Federal offers refinance APRs starting at 4.54%, with terms up to 96 months for eligible new and used vehicles. Current promotions include a $200 refinance bonus for loans of $5,000 or more moved from another lender. APRs vary depending on credit score, repayment term, and vehicle age. Membership is restricted to active-duty service members, veterans, DoD civilian employees, and eligible family members. Rates for used vehicles range from 4.79% to 5.39%, with shorter terms typically offering lower APRs. Always read your official loan estimate before signing the contract.

LightStream

Powered by Truist, LightStream offers an excellent Auto refinancing program with APRs starting at 6.49% to 14.99% with autopay, loan amounts from $5,000 to $100,000, and next-day funding. Unlike many competitors, there’s no appraisal required, and there are no restrictions on vehicle age or mileage. No wonder it has achieved a near five-star rating across more than 32,000 reviews from real-world customers on the website.

Another benefit of using LightStream is its “Rate Beat Program,” which allows borrowers to beat competitors’ APRs by up to 0.10 percentage points.

All in all, if you’re looking for transparency, reliability, and overall borrower satisfaction, then LightStream is clearly one to beat.

What We Like:

• 49% to 14.99% APRs
• Rate Beat Program beats the competitor’s APR by 0.10
• More than 32,000 verified five-star reviews
• Recognized by NerdWallet, Bankrate, Forbes Advisor, and Money.com

What We Don’t Like:

• No pre-qualification available
• No in-person assistance
• Rate Beat Program does not apply to all competitor offers

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Good to excellent credit required
• Meet LightStream’s basic condition and titling requirements
• Submitted application through the LightStream portal

Terms: LightStream, a division of Truist, offers auto refinance APRs from 6.49% to 14.99% with autopay, depending on credit profile, loan amount, and repayment term. Loan amounts range from $5,000 to $100,000, with no vehicle age or mileage restrictions and no appraisal requirements. LightStream also offers a Rate Beat Program, reducing approved competitor APRs by 0.10 percentage points when applicable. Always read your official loan estimate before signing the contract.

RefiJet

RefiJet is one of the more popular auto refinance marketplaces, allowing borrowers to obtain refinance APRs ranging from 5.99% to 17.99% depending on credit score, loan amount, and vehicle age. It’s hard to appreciate the dedicated Loan Consultants who walk you through every step of the process, from documentation to offer comparison, bridging the gap between lenders and working with fair or even bad credit.

In terms of terms, RefiJet borrowers can refinance vehicles up to 15 years old within mileage limits, making it an excellent choice compared to lenders with vehicle age or mileage restrictions.

All in all, RefiJet is an excellent choice if you’re looking for personalized assistance and have had difficulty qualifying with traditional lenders who would prefer a more customized refinancing option.

What We Like:

• APRs starting near 5.99%
• Dedicated Loan Consultants on call
• 8-star rating across 1,000+ reviews on Google
• High marks on Trustpilot and ConsumerAffairs

What We Don’t Like:

• No rate preview option
• Not a direct lender
• Cash-out refinancing is not available in every state

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Proof of income and insurance required
• Three qualifications with a loan consultant over the phone
• Submitted application through the RefiJet portal

Terms: RefiJet provides auto refinance options with APRs typically ranging from 5.99% to 17.99%, depending on credit score, vehicle age, mileage, and lender criteria. RefiJet is not a direct lender, and cash-out refinancing is not available in every state. Rates, terms, and documentation requirements vary by participating lender. Always read your official loan estimate before signing the contract.

Tresl

Promising an average annual savings of $1,500 $5.76 with a 3.5% average interest reduction across more than 48,000 auto loans refinanced, Tresl is highly regarded for its exceptional finance advisory team that walks you through every step of the process. Plus, it offers a fully automated platform where you can check your rates in minutes and sign your auto refinance documents through an easy, intuitive, proprietary platform.

One of Tresl’s greatest strengths is its expansive network of lenders, which considers other eligibility criteria beyond credit scores, so you can comfortably lower your monthly payments without dealing with a dealership. If you’re looking for a hands-off, concierge-style refinancing experience, I highly recommend Tresl.

What We Like:

• 3/5 average across more than 6k+ reviews on Trustpilot
• Average annual savings of over $1,500
• Easy and intuitive e-signature platform
• Greater flexibility with credit and vehicle age

What We Don’t Like:

• Not available in all states
• Not a direct lender
• Vehicle restrictions may still apply
• Rates and term options vary depending on the lender

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Vehicle details required (e.g., VIN, mileage, model year)
• Matching lender-specific age and mileage guidelines
• Pre-qualify through the Tresl website to compare refinance offers

Terms: Tresl partners with multiple lenders to offer auto refinance APRs and terms that vary depending on credit, vehicle age, and lender requirements. Borrowers report average annual savings of over $1,500 and a 3.5% average interest-rate reduction. Tresl is not a direct lender, and vehicle restrictions still apply depending on lender guidelines and state availability. Always read your official loan estimate before signing the contract.

Ally

Ally Refinancing offers an extensive network of lenders with APRs starting around five and repayment terms of 36 to 84 months. According to the website, you can save an average of $158 a month or $1,896 annually, and buy with no application or document fees, using a 100% online pre-qualification process that extends loan offers within minutes.

Other benefits offered by Ally Refinancing include Guaranteed Asset Protection (GAP) for eligible customers, optional extended vehicle coverage, and lease buyout options.

Keep in mind that some lenders, including Ally Bank, have stricter credit or vehicle requirements, so shop around twice.

What We Like:

• APRs starting around 5.49%
• Expansive lender network backed by Ally
• Easy, intuitive online application
• Strong digital contract tools

What We Don’t Like:

• No new purchase loans available
• Not all vehicle categories are accepted
• Customer service depends on the partner lender
• Not available in Nevada, Vermont, or the District of Columbia

Eligibility & Next Steps:

• Must be 18 or older
• US citizen or permanent resident
• Provide vehicle and current loan details
• Apply through the Ally Refinancing online portal

Terms: Ally offers auto refinance loan APRs starting around 5.49%, depending on lender availability, credit strength, and vehicle specifics. Borrowers report average savings of $158 per month or $1,896 annually, with no application or document fees. Loan terms typically range from 36 to 84 months. Ally Refinancing does not support loans for new vehicle purchases and is not available in NV, VT, or DC. Final APRs and eligibility vary by partnering lenders. Always read your official loan estimate before signing the contract.

LendingClub

Promising to help its members save more than $2,400 on average through financing, LendingClub offers a fully digital platform that allows borrowers to take advantage of refinancing rates starting at 6.85% APR through a straightforward digital application process and transparent loan disclosures.

With LendingClub, it’s very easy to check your potential refinance rate with no impact on your credit score. Try to understand all its mileage requirements and model your requirements, e.g., accepting vehicles up to 10 years old with mileage caps of 150,000 miles (depending on the partner lender). Depending on the vehicle’s loan-to-value ratio, expect refinancing loans to range from $5,000 to $55,000.

If you’re looking for clear transparency, then LendingClub is the way to go, with no hidden fees and all applicable charges specified up front. When your application is approved, partner lenders will pay off your existing auto loan immediately, so you don’t have to be so hands-on. Continue to make payments on your new refinance loan at a lower APR and on a different schedule.

All in all, we’re big fans of LendingClub for its complete refinancing program.

What We Like:

• Refinance rates start at 6.85% APR
• Ability to borrow $5,000 to $55,000 based on vehicle LTV
• No hidden fees
• More than $100B borrowed
• 7K+ average 4.5-star Trustpilot reviews

What We Don’t Like:

• Higher than average interest rates
• No new purchase loans available
• Not the speediest customer service
• Limited vehicle mileage requirements

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Provide vehicle and current loan details
• Apply through the LendingClub online portal

Terms: LendingClub offers auto refinance APRs starting at 6.85%, based on credit, loan-to-value ratio, repayment term, and vehicle characteristics. Loan amounts typically range from $5,000 to $55,000, with vehicle eligibility generally limited to cars up to 10 years old and under 150,000 miles, depending on partner lender criteria. Always read your official loan estimate before signing the contract.

What Are Auto Refinance Loans?

Auto refinance loans allow you to replace your current auto loan with a new one, so you can take advantage of lower APRs given today’s rates and shortened or lengthened repayment terms, which are probably the goal of setting up more favorable conditions.

For example, you may decide to refinance due to an improved credit score (e.g., a 100-point increase) or to shorten the term to pay off your vehicle faster.

Here’s a breakdown of what auto refinance loans are all about: paying off your old loan and achieving a lower interest rate with better terms.

Pays Off Your Old One

When you refinance, your new lender immediately pays off your existing auto loan. The old account is closed, and the remaining balance is transferred to the new lender under different terms, including a lower APR, a different term length, and a different monthly payment amount. Note, it replaces your entire old loan, not modifies it.

One of the biggest reasons borrowers may decide to pay off an old loan is that it is with a dealership notorious for inflated APRs.

In short, your old loan is paid off by the new lender, and you get brand-new loan terms with a new monthly payment, APR, and repayment term.

Achieve a Lower Interest Rate

One of the biggest reasons borrowers refinance is to reduce their APR. For example, if you initially financed your vehicle at 9% APR, you may qualify for a lower APR after you’ve improved your credit score by 100 points or more. On a 48- or 60-month term, even a 4% rate drop can make a tremendous difference.

In this article, we discuss auto loan refinancing. If you want to learn more about auto loans, read our general article on the best car loan rates.

What Are the Pros and Cons of Auto Refinance Loans?

Here are the pros and cons of auto refinance loans:

Pros:

Lower Monthly Payments

One of the biggest reasons to refinance an auto loan is to reduce your monthly payment by getting a lower APR or extending the term, and I would like you to free up cash for other expenses, such as rent and utilities. Even cutting your auto payment by $100 a month can improve your financial flexibility.

Plus, the lower your payments, the less likely you are to have late or missed payments, which can help protect your credit score. Note: extending your loan term will increase total interest paid at the expense of cash flow relief.

Improved Credit Score

If you manage your new refinanced auto loan responsibly, you can boost your credit score. By lowering your monthly payments and making payments on time, you can reduce your credit utilization ratio and qualify for lower APRs and other lines of credit with future lenders.

Flexible Payment Options

Many auto refinance lenders now offer flexible payment schedules, such as bi-weekly or semi-monthly payments, which allow you to control your monthly budget better. Some lenders will even let you change the due date on your monthly bill to coincide with your paychecks, reducing the risk of late payment.

Lower APRs

Another benefit to refinancing your auto loan is that you can secure a lower interest rate than your original loan. If market rates have dropped, you should take advantage of it with a 1 to 2% lower APR, which helps you save hundreds of dollars in interest over the life of a loan.

Remember, the lower your interest rate, the more that goes towards principal rather than interest.

Shortened Loan Term

If you want to pay off your vehicle faster, you can also refinance to a shorter loan term. However, this is expected to increase your monthly payments while reducing the total interest you pay over time, allowing you to build equity faster. Plus, if you plan to sell or trade in your vehicle sooner, shorter loans are definitely worth it.

Cash-Out Options

Some auto refinance loans allow you to borrow more than your current loan balance, which will enable you to convert your vehicle’s equity into cold, hard cash. Because your car serves as collateral, these loans often offer lower interest rates than personal loans.

Cons:

Might Pay Higher Total Interest

While refinancing can lower monthly payments, prolonging your loan term can result in more interest paid over time. Remember, the longer the repayment period, the more months of interest accrue, so focusing only on monthly savings may not be the wisest choice (especially if your new APR is only slightly lower than your original APR).

Fees and Closing Costs

Expect to pay several fees for refinancing, including application fees, title transfer fees, and prepayment penalties. If these fees add up, you can offset any savings, which would make auto refinancing not worth it. We advise you to review all your costs before signing on the dotted line.

As a general rule, refinancing is less appropriate for smaller loan balances, so we always encourage you to weigh the financial benefits against any upfront charges you may incur.

Depreciation Risk

If your vehicle has lost thousands of dollars in value, refinancing auto loans could make you pay more than your car is worth, especially if you extend your loan term by a year or two. When it comes to trade-ins or insuring your vehicle, it can complicate things, so we highly encourage you to accurately calculate your vehicle’s current value and projected depreciation before taking out any refinance auto loan.

Not All Are Eligible

If you have a low credit score, a high debt-to-income ratio, or a vehicle that is on and off, you may not be the right candidate for auto refinancing, since every lender has vehicle age, mileage, and condition requirements. Knowing lender requirements upfront can help you avoid headaches later.

All in all, auto refinance loans can be a powerful tool for saving money on your car payments; however, not all refinancing opportunities are equally beneficial, so we encourage you to weigh your options carefully and understand all of your auto refinancing terms to ensure immediate savings with a long-term, financially sound approach.

What Types of Auto Refinance Loans Are There?

Here are the different types of auto refinance loans you may discover:

Electric Vehicle (EV) Refinance Loans

If you’re a big fan of electric vehicles like Tesla, Rivian, or Nissan Leaf models, then you can take advantage of EV refinance loans with slightly different evaluation criteria than standard auto refinance loans.

For example, criteria include the vehicle’s battery health and remaining warranty, as well as any state incentives. For example, refinancing a Tesla Model X with only 3,000 miles could give you a 2% lower APR than a traditional used-vehicle loan, since EVs may have a higher resale value, making them appealing to lenders.

Plus, EV refinance loans can also add coverage for electric drivetrain repairs. Keep in mind that this is a niche type of refinancing that not every lender offers, so you may want to connect with specialized lenders or online marketplaces to get started.

Low-Mileage Vehicle Loans

If your vehicle has under 20,000 miles on it, you can take advantage of low-mileage vehicle refinance loans. For example, a 2021 Honda Civic with only 10,000 miles may benefit from an auto refinance loan with an APR similar to that of new-vehicle loans.

To confirm whether a vehicle is new, lenders review maintenance records and odometer readings. The better the condition, the greater the likelihood of lower interest rates and flexible repayment terms.

Remember, high-value, lightly used cars are always appreciated by lenders!

Jumbo Auto Refinance Loans

If you have a vehicle valued at $75,000 or more, like a $120,000 Range Rover or a $95,000 Chevrolet Corvette, then you can take advantage of jumbo auto refinance loans. If done correctly, it’s not uncommon to lower your APR from 6% to 4.5%, which can help you save thousands of dollars over the life of a loan.

To take out jumbo auto refinance loans, you’ll need to have excellent credit and a stable income. Expect greater scrutiny of your vehicle condition, mileage, and insurance coverage, as well as bail and lenders.

Hybrid Vehicle Refinance Loans

Suppose you own a Toyota Prius, Honda Insight, or Ford Escape Hybrid. Or are there hybrid-specific vehicles that you can take advantage of? Like EV loans, lenders consider your hybrid battery’s health, efficiency, and resale value.

Don’t be surprised if you get a better refinancing deal on a 2022 Prius with 15,000 miles than on a standard used-vehicle loan, given the higher demand and excellent value retention. Once again, we highly recommend shopping through online marketplaces or credit unions to secure the best possible deal.

Can I Get an Auto Refinance Loan With Bad Credit?

Yes, it is possible to get an auto refinance loan with bad credit.

However, you should expect to struggle a bit more than borrowers with strong credit scores. If you have a credit score in the 500 to 600 range, then you can benefit from marketplaces like RateGenius, SuperMoney, iLending, Caribou, and RefiJet, which allow you to qualify using criteria outside of scoring, such as income and payment history.

Plus, these auto refinance marketplaces allow you to match with lenders waiting to accept older vehicles or higher mileage. Or that you may not qualify for the lowest advertised APRs, your current loan could still be replaced with a new, lower APR loan.

One of the biggest reasons bad-credit borrowers may seek auto refinance loans is that the initial deals they received from banks were unfavorable. As long as you’re on a clean-title vehicle that meets age and mileage guidelines, and you have a low recent delinquency, you should be able to get on the phone with a dedicated loan consultant.

How to Qualify for an Auto Refinance Loan?

No matter whether you’re looking to make your monthly payments, cut down on interest, or build cash equity, here’s a step-by-step guide on how to qualify for an auto refinance loan from RateGenius, SuperMoney, iLending, and all the other lenders covered in our guide.

Check Eligibility

To qualify for auto refinance loans, you generally need to be 18 years of age or older, a US citizen or permanent resident, and have a vehicle with age and mileage that fall within lender guidelines. For example, LightStream has no mileage or age restrictions for refinancing. You will also need proof of income, such as pay stubs or electronic bank statements showing deposits.

One of the best things about qualifying early is that many online marketplaces, like SuperMoney and Caribou, offer soft credit checks so you do not hurt your credit score.

Get Your Vehicle and Loan Information

From here, get all the information you need about your current loan vehicle, including your current lender, outstanding balance, interest rate, and monthly payment.

Auto details include your vehicle make, model, year, VIN, and mileage, as well as proof of insurance.

Based on this information, lenders and marketplaces do different things. For example, RateGenius lets you pre-qualify to compare multiple lender offers. In contrast, OpenRoad passes this information along to its loan specialists to help you discover the best rates and terms.

Explore Lender Options

The third step in qualifying for an auto refinance is to explore all of your lender options. Online marketplaces like SuperMoney, Caribou, LendingTree, and RefiJet make it very easy to compare APR ranges, review long-term options, and check out optional add-ons like GAP coverage and vehicle service contracts if you do not have a warranty.

Plus, you can even take advantage of Swap & Drop programs that cut your interest rate by up to 1%.

Receive Lender Offers

Now you’re ready to receive plenty of lender offers. Whereas marketplaces let you get matched with multiple lenders quickly, direct lenders can provide pre-qualified offers with APRs from 6.49% to 17.99%, which can easily save you at least $80 a month.

Let’s not forget about Upstart, and its AI underwriting algorithm, which assesses borrowers based on criteria outside of credit score, such as education, employment, and income, for ultra-quick approval.

Submit an Application

Once you’re comfortable, apply. Provide all supporting documentation you need, including proof of income, vehicle registration, title, and insurance documents. Be sure to take advantage of one-on-one loan consultants or dedicated loan specialists. We’re going to walk you through the process, especially if you have fair or bad credit.

How to Pick the Best Auto Refinance Loan for Me?

Picking the best auto refinance loan comes down to choosing the right lender and the proper structure. Whether you’re looking to perform side-by-side comparisons using SuperMoney or looking for dedicated loan support and in-house stability from Navy Federal Credit Union or similar, it’s all about deciding what’s in your best interests.

Here’s a step-by-step breakdown on how to choose the right auto loan:

Start With Your Goal

The first step is to understand what you want the financial loan used for. Are you looking for a lower monthly payment or longer repayment terms, and do you have Fair Credit? If so, RateGenius and Caribou are two services that specialize in this area. If your goal is to lower your interest rate, SuperMoney and LendingTree let you compare multiple offers side by side so you can understand the actual APR.

Depending on your vehicle’s age, equity, and state rules, consider cash-out refinancing through RefiJet or RateGenius, direct lenders.

Compare APR Ranges

Never assume the advertised rate is what you’re eligible for, as it’s typically reserved for borrowers with excellent credit and newer vehicles. Instead, look at the entire APR range. For example, Upstart’s range (5.22%–17.99%) applies to all credit, especially given that other underwriting factors, such as job history and cash flow, also come into play.

Check Vehicle Eligibility Requirements

With auto refinancing, it’s all about vehicle restrictions. Different lenders have different rules for vehicle age, mileage, and other criteria that assess vehicle loan feasibility and value. For example, iLending allows cars up to 150,000 miles and model years as old as 2009 to be financed.

If your vehicle is 15 years old or older, consider using marketplaces specializing in older vehicles, such as RefiJet, RateGenius, and Caribou.

Understand Each Lender’s Approval Process

Not all lenders evaluate risk the same. For example, Upstart uses an AI-powered underwriting engine that allows borrowers with thin or limited credit histories to qualify based on factors beyond credit scores. At the same time, others have extensive lender networks that will enable you to get matched no matter what your credit or personal situation is, even if you have had recent late payments.

At the same time, credit unions are more focused on traditional underwriting processes that take into account your debt-to-income ratio, credit score, and income stability.

All in all, it’s about understanding how each lender approves borrowers: not all are treated equally.

Evaluate Fees, Add-Ons, and Total Loan Cost

Don’t focus only on APRs. Instead, lenders can charge a variety of fees, including origination, processing, and DMV fees. That’s why we appreciate networks like LightStream, which charge no fees. Other marketplaces charge fees that vary by lender partner.

At the same time, pay attention to upsells and add-ons that may not be required. Don’t be surprised if your lender pitches cosmetic protection or total-loss coverage, which only serves to pad their bottom line, if you have a newer, lower-mileage vehicle where the cost does not make sense.

Remember, marketplaces are not direct lenders but intermediaries that connect borrowers with a legit network of lenders willing to extend auto refinancing loans.

Look Into Funding Speed

How quickly you can access your loan funds can make a big difference, especially if you need cash now. Some of our recommended lenders can deposit funds into your checking account within one business day of approval, while others can take 5 to 7 business days.

Plus, you may need a quick disbursement to avoid late fees when paying off an existing loan.

Learn Customer Support Reputation

If you want to learn about a lender’s reliability and transparency, look to third-party review sites like Trustpilot and the Better Business Bureau. Plus, you should pay attention to support channels. Phone, live chat, email, and weekend availability should all be fair game.

What Is APR?

Standing for annual percentage rate, APR represents the total cost of borrowing on a loan, which is converted into a percentage. On top of the interest rate, other fees are added, such as origination or application fees, to provide a clearer picture of what you’ll pay over time.

APRs are also a better starting point for comparing loan offers. For example, you may see a loan with a higher interest rate and no fees that actually has a higher APR than a loan with a lower interest rate and some fees.

Generally speaking, a lower APR means you’ll pay less in interest and fees over time, allowing you to build equity in your vehicle faster. We always encourage you to use comparison sites like SuperMoney to compare APRs between different lenders. Even slight differences could save hundreds of dollars on a $10,000 loan or thousands of dollars on a $20,000+ loan.

What Are The Typical Auto Refinance Loan Rates I Should Expect to Pay?

Typical auto refinance loan rates vary based on several factors, including your credit score, vehicle type, vehicle condition, loan term, and current market rates.

If you have excellent credit, you can expect to pay rates as low as 3% to 5%, versus 8% to 15% for those with poor or fair credit. As a general rule, newer vehicles qualify for lower rates, whereas older cars or higher-mileage vehicles qualify for higher rates.

At the same time, shorter loans have higher monthly payments, and longer loans have lower monthly payments. That’s why short-term loans often have lower rates. In any case, we encourage you to shop around and compare multiple lenders to help you secure the best rate for your unique situation.

What Are The Expected Refinance Auto Loan Fees?

Auto refinance loan fees imply a lot of smoke and mirrors if you are not careful. Whether it’s being tricked into a lower monthly payment or paying an outrageous origination fee, here are the different types of legit and non-legit auto refinance fees you should expect, along with detailed examples so you know exactly what to look out for:

Application & Processing Fees

Non-refundable application and processing fees can range from $25 to $150, depending on the lender, and are used to cover administrative costs or credit pull expenses. However, reputable banks, credit unions, and online marketplaces rarely charge this.

That’s why we’re big fans of marketplaces like RateGenius or SuperMoney, which don’t charge these fees.

If you do catch these fees, try to see if they can be waived.

Origination Fees

Lenders charge origination fees for the privilege of taking out a new loan, ranging from 1% to 3% of the loan amount. If not a percentage, you may also be required to pay a flat fee of $100-$500, which will be added to your new loan balance. For example, if you refinance $22,000 with a 2% origination fee, you pay close to $450 off the bat, which can go as high as $700 once interest kicks in.

Keep in mind that lenders often use a regulatory fee to cover an introductory APR, leading people to think they’re getting a deal.

Title Transfer Fees

When you refinance, your lender must update the vehicle title. Depending on your state, the DMV could charge up to $5.75. However, auto refinancing companies can take advantage and charge you much more than this. Always check the DMV’s fees and compare them with the auto refinancing company’s fees to ensure you’re not being ripped off.

Prepayment Penalties From Your Original Loan

If you pay off your loan early, you may be charged a prepayment penalty that could cost several months’ worth of interest. For example, if your original lender charges 60 days of interest as a prepayment penalty, you may end up paying close to $400 on a $15,000 balance.

In short, this is very common in dealership loans but less so with credit union loans. Be sure to check your original contract to avoid any surprise prepayment penalties.

GAP Insurance Re-Purchase Fees

If you had GAP insurance on your old loan, your new lender may require it again, which usually runs about $300 to $800, depending on the lender (and is rolled into the current balance). If your original GAP policy expires and you may only receive a small refund, whereas your new lender can charge you $500 or more on a new policy, be careful.

If you want the lowest GAP rates, credit unions are usually the ones to offer them. Avoid dealerships and subprime lenders altogether.

Cash-Out Refinancing Fees

Cash-out refinancing for cars involves numerous fees, including origination and verification fees. For example, if you want $2,000 in cash-out funds, a lender may pitch you a 9.5% APR refinance over a 7% APR refinance, along with required extended warranties, which can add hundreds of dollars to the loan.

All the temptations to cash out are there; consider these fees only if the money is vital.

Will Checking My Refinance Auto Loan Rates Affect My Credit Score?

If you’re simply checking your refinance auto loan rates, that will not affect your credit score, as long as your lender uses a soft credit check during pre-qualification. This lets you see estimated rates for what you’re shopping for.

A hard inquiry is triggered only when you officially apply for the loan. However, credit bureaus will treat multiple auto loan inquiries within a 14 to 45-day time frame as a single inquiry, so you shouldn’t suffer too much from rate shopping. This means you can compare as many lenders as you’d like without worrying about your score dropping.

How to Find Refinance Auto Loans and Avoid Scams?

Here are some tips on how to find legit refinance deals without falling victim to the worst scams:

Avoid “Title Transfer Assistance” Fees

Always watch out for “title transfer assistance fees.” Lenders sometimes charge hundreds of dollars more than what your state DMV charges. Always check the state DMV website to learn your title transfer fee and compare it with the lender’s. The exact state fee on your contract should always be clearly disclosed.

If your auto refinance lender refuses to provide a cost breakdown or explain how it compares to state DMV pricing, then walk away.

Avoid Upfront Payment

If you’re being charged a combination of loan release fees, “expedited underwriting charges,” anything in between, then it’s best to run. Oftentimes, scammers collect these fake fees and disappear off the map, or claim multiple fees and then have the application denied.

Legit lenders like Tresl, RefiJet, and RateGenius will always roll real fees into the actual loan or mention them and provide disclosures after approval.

Don’t Let Them Inflate Your Vehicle Value

Sometimes, lenders will inflate your vehicle’s value by thousands above its actual price. All of our recommended lenders will always ask that you use verified sources, such as Kelley Blue Book, to assess your vehicle’s book value based on mileage and condition. If your lender’s valuation is too high, then it probably is.

Watch Out for “Cash-Back Refinance”

One of the biggest games in the refinancing auto loan business is “cash-back auto refinancing,” which promises cash back in your pocket while reducing your monthly payments. However, it’s very common for scam lenders to add additional fees and unnecessary service contracts, all to inflate your loan balance.

Remember that legit refinance lenders like RefiJet, Tresl, RateGenius, LightStream, and iLending will never do this.

Review All Loan Disclosures Before Signing

Always keep in mind that legit lenders will outline all your loan terms and conditions, such as APRs, monthly payments, and total repayment costs, in an easy-to-read format. Always look for contracts with clear, itemized breakdowns and no vague language.

At the same time, you should always request a complete disclosure form before signing a contract. Have the lender regurgitate as many specifics as possible to ensure there are no hidden prepayment penalties or rate markups, and no unnecessary add-ons like GAP insurance. The more transparent the lender is, the better off you’ll be.

Use Pre-qualification to Protect Your Credit

When shopping for auto loans, you should pre-qualify, period. Marketplaces like SuperMoney and lenders like Capital One Auto Finance allow you to see all estimated APRs and loan-term rates, and you can see which ones you’re eligible for using only a soft inquiry. Protect your score to stay protected.

Under no circumstances should you let scammers and predatory lenders push you into a hard inquiry. Multiple hard credit pulls within a short period can drop your score as much as 20 points, which could disqualify you from top APR terms with other lines of credit, such as auto loans and mortgages.

Don’t Consider Refinancing For 84 or 96-Month Terms.

Under no circumstances should you ever agree to 84-month or 96-month refinancing terms, which allow lenders to create false low monthly payments and disguise higher total interest costs. Remember that you should never be pressured into the longest possible loan with repayment terms that do not match your ability to repay.

Double Check GAP and Warranty Rollovers

Don’t make the mistake of rolling your previous GAP coverage or extended warranty into your new loan without checking first. Often, scammers’ll ask you to purchase new protection packages at exorbitant prices, all added to the principal cost without your knowledge.

A legit auto refinance lender will always check whether you have existing GAP or warranty transfers automatically before pitching anything. Transparency around add-ons is one of the most essential things for refinance auto lenders, as costs can quickly spiral out of control.

What Refinance Auto Loans Should I Avoid and Why?

Here are five different types of refinance auto loans you should avoid and why:

Car Title “Refinance” Loans

Never take out title loan rollovers. Scammers will often claim they can “refinance” your existing auto loan into a lower payment, but they’re actually offering a title loan with APRs that commonly go from 150% to 300%+ while continuing to owe your original auto loan (thinking one auto loan is being replaced with another)

With these loans, your vehicle becomes collateral, and your balance is rolled over every 30 days, making payoff extremely difficult. Plus, a single missed payment can result in your car being repossessed.

“Guaranteed Approval” Auto Refinance Loans

Under no circumstances should you fall for any promises of guaranteed approval. Legit lenders will always check your eligibility, including your credit, income, and vehicle information. To “unlock your guaranteed offer,” these lenders often charge a variety of fees, including processing and vehicle inspection fees that don’t make sense. In some cases, they may even ask for your bank login information.

Extensive “Origination” or “Broker” Fees

Unregulated online auto loan brokers are primarily known for hiding origination fees of up to $2,500 or 10% of the loan amount. All of our recommended lenders fully disclose fees upfront, whereas unregulated brokers hide disinformation. Remember, you should never pay thousands to refinance a loan.

Cash-Out Refinance Loans With Crazy Vehicle Valuations

Watch out for predatory lenders who inflate your vehicle’s value to approve larger loans. For example, it’s not uncommon to get approved for a $20,000 cash-out loan for a car worth $12,000, which is primarily known for higher APRs and aggressive payment terms with super strict repossession clauses that could part you from your vehicle with even a single missed payment.

If your lender is not willing to explain the loan-to-value (LTV) rules correctly, run like the plague.

Mandatory Add-Ons

Try to avoid any refinancing auto loans that try to upsell you too hard on extras like extended warranties and insurance packages. Although it’s possible to be pitched and upsold too, it’s not okay for lenders to hide these charges in your finance balance, which can bump up your principal by as much as $5,000 without you knowing.

Adjustable-Rate Auto Refinance Loans

Adjustable-rate auto refinance loans will only raise your APR every 3 to 6 months. Typically, lenders only target poor-credit borrowers who are fooled into paying a low introductory rate, only to be bait-and-switched later. It’s not uncommon for a loan starting at 6% APR to jump to 19.99% or even 29.99%, making monthly payments virtually impossible.

How We Picked These Lenders

With auto refinancing, understand that different lenders are for different things. Beyond providing competitive rates and transparency, our criteria help identify companies that also excel in soft pre-qualification, no upfront fees, exceptional customer support, flexible approval, and more.

Let’s explore in depth each of the criteria we used to research lenders for this guide:

Rates, Fees, and Terms

We only prioritize auto refinance lenders that clearly disclose their APR ranges, repayment terms, and all potential fees before any application. Nowadays, many lenders hide fees and other mandatory add-ons in the fine print, burying upfront cost breakdowns and providing complete transparency.

Plus, there should be clear illustrations of how your loan-to-value (LTV) affects your loan terms, and over time, pre-qualification estimates must match the final loan disclosure as closely as possible. For example, if there’s a promotional 5.99% APR with an approval at 8% APR, it’s a highly deceptive marketing practice, so we always make sure that advertised ranges fall WITHIN realistic APRs.

Legitimacy and Licensing Verification

All of our recommended lenders have a valid NMLS registration and a verifiable physical address. Today, there’s no shortage of unlicensed lead-generation and approval services that pretend to be auto refinance lenders.

At the same time, all of our auto refinance lenders also comply with TILA, ECOA, and the FTC Act regulations. The Truth in Lending Act (TILA) is a federal law that mandates how auto lenders disclose information, such as APR and the total cost of the loan. In contrast, the ECOA prohibits lenders from discriminating against borrowers based on race, gender, or other protected characteristics.

Lastly, Section 5 of the Federal Trade Commission Act also prevents dealerships from engaging in deceptive marketing practices, such as false APRs, hidden fees, or unauthorized loan products. Trust that all of our recommended lenders do not engage in such practices.

Soft-Pull Pre-Qualification

At ElitePersonalFinance, we’re huge on protecting your credit. All of our recommended lenders must offer a soft-pull pre-qualification tool that lets you compare multiple offers (including a side-by-side view of estimated APRs, terms, and eligibility rules) without affecting your credit score.

At the same time, we understand that none of our lenders rely on teaser rates. All legit lenders on our list provide realistic rate estimates you can trust for the most accurate estimate-to-approval possible.

No Upfront Fees or “Application Charges”

Nowadays, there are too many unnecessary fees charged, often called “processing,” “rate lock,” or “application review.” All of our recommendations do not require any upfront payment before processing your loan. Plus, we try to avoid lenders who pitch too many warranties or GAP insurance.

If add-ons are recommended, we prefer that lenders not pressure borrowers or mark them as required on any loan application. At the very least, optional add-ons only with no pressure tactics!

Customer Support

We prioritize lenders that offer an easy, intuitive digital experience, including fast document uploads, real-time status updates, and clear vehicle listings. Plus, we also prioritize different levels of support, with a preference for lenders that offer a combination of live chat, email, phone, and weekend availability.

All of these contact methods are essential, as there are many complex subjects to discuss, such as LTV requirements and payoff calculations.

Approval Flexibility and Vehicle Eligibility

All of our recommendations work with different income levels, vehicle ages, and mileage ranges.
Each auto refinance lender has different rules regarding the vehicles it accepts. For example, many lenders reject vehicles older than 10 years or with more than 120,000 miles, although a few accept cars up to 20 years old with no mileage limit. You should find the lender that meets your vehicle criteria here.

At the same time, we’re big fans of lenders who give rebuilt-title or high-LTV vehicles a chance, especially for those who’ve recently had a credit boost. Personalized approvals always take precedence over meeting the minimums in our book.

Frequently Asked Questions

How long should I wait before refinancing my car loan after buying a vehicle?

After purchasing your vehicle, wait at least 60 days before applying for a refinance loan. This allows enough time for your title to transfer and for your original lender to finalize loan processing. Your credit score has a recent hard inquiry to cool down.

Once your initial loan data is fully settled, you’ll notice higher approval odds.

Does refinancing my auto loan hurt my credit score?

Refinancing triggers a hard inquiry, but it should only drop your credit score by a few points for a short period. However, keep in mind that if you conduct multiple auto loan inquiries within a 45-day window, they are treated as a single inquiry. We highly recommend using marketplaces like SuperMoney or Caribou.

Can I refinance a car loan if my vehicle is almost paid off?

Yes, it is possible to refinance an auto loan if your vehicle is almost paid off, but it may not be worth it if the remaining balance is too small. Most auto refinance lenders, like OpenRoad, RefiJet, and RateGenius, typically require a minimum balance of $7,500 to $10,000. If you’re less than that, it makes more sense to pay off the loan early, unless you have a very high APR or extra years left on your term, in which case refinancing makes more sense. Additionally, each lender has its own minimum guidelines, so always check and compare multiple lenders to see which ones qualify.

How soon can I get the new, lower payment after refinancing?

Expect most lenders to settle the new refinance loan within 3–10 business days, depending on how quickly you submit all supporting documentation, such as insurance and proof of income. Your refinance lender will send the payoff to your old lender. At this point, your new loan will kick off, with your first payment due within 30 to 45 days, allowing you extra financial flexibility that month.

Can I refinance a car loan if my income has changed?

Yes, it is possible to refinance a car loan if your income has changed. It’s all about showing lenders that you’re stable before you’re offered a better APR. If your income went down, qualification is still possible, but the lender might offer a longer repayment term to lower your monthly payment rather than dropping the rate.

However, if your income has increased, refinancing becomes easier, especially if you use platforms like iLending or Upstart that evaluate your cash flow history.

Is it possible to refinance a car loan that is upside down?

Refinancing an upside-down loan is possible, but you need to have an excellent to good credit score. Not too many partners allow negative equity or roll-ins. Always remember that your approval odds drop if you owe more than the vehicle’s current value.

Can I refinance if my car title hasn’t arrived yet?

Yes, it is possible to refinance your car’s title if your current lender still holds the title and your state DMV has it properly recorded. You don’t need to have the physical title on hand. All you need to show is that you do not have any title loan liens or errors. The transfer request will be facilitated by the refinance lender working with your original lender after the loan is paid off.

Do I need to get my car inspected or appraised to refinance?

Do not expect your lender to require a physical inspection. However, you will be asked to provide vehicle details, such as your mileage, trim, and condition. In some cases, you may even be asked for photos if your vehicle has high mileage. Digital valuations, such as Black Book or NADA Guides, can also serve as substitutes for actual inspections.

If you do have an inspection, you’ll generally need to provide detailed photos of the vehicle’s condition rather than attend the garage or auto shop in person.

How many times can I refinance my auto loan?

You can refinance your auto loan as many times as you want. However, the more you refinance, the less likely you are to see the right improvements. It’s not uncommon for borrowers to refinance a second time after improving their credit score within a year to a year and a half, which offers enough time for good habits to kick in and improve their score.

Conclusion

Refinancing an auto loan can be a smart financial move, but it isn’t for everyone. Whether you’re looking to cut down on your monthly payment, secure lower APRs or take out your vehicle’s equity, rely on our comprehensive guide to learn highly recommended lenders, which factors play a role in determining how much you can save, and best practices on comparing offers so that you can enjoy financial flexibility and long-term savings with your next refinancing auto loan.