Best Auto Loan Refinance Companies and Rates

Are you having trouble making your auto loan payments? Looking for ways to save money on your auto loan? How about paying off your car sooner? Applying for a refinance car loan is one of the best ways to achieve these goals.  

However, it’s not just as simple as applying for the first loan you come across. There are a few things to consider to get the most out of refinancing your car loan. We’ll show you what to consider and which top lenders can help you get there.

Reviews of the best auto loan refinance companies

Click the company’s name in the bulleted list to learn why we picked it as one of the best.

• Best for comparison shopping: RateGenius
• Best for flexible terms: iLending
• Best for no fees: LightStream
• Best for lifetime financing: Carputty
• Best for bad credit: OpenRoad Lending

RateGenius

Best for comparison shopping

4.9 _/5

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Why RateGenius is one of the best

RateGenius offers a straightforward online loan quote service, making it a practical choice for those who value convenience and accessibility. 

Its secure platform protects your valuable information throughout the application process. It connects you with various trusted lenders, increasing your chances of finding the best possible auto refinance loan rates.

Focusing exclusively on auto refinance loans, RateGenius boasts a high customer satisfaction rating and offers competitive interest rates with repayment terms from 36 to 72 months​​.

• User-friendly online loan quote service
• Guarantees secure and confidential application process
• Access to a wide network of trusted lenders

iLending

Best for flexible terms

4.8 _/5

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Why iLending is one of the best

As an online marketplace, iLending brings multiple loan offers to your screen. It makes the comparison easier, potentially saving you time and netting you the best deal. It offers competitive rates and terms, with the ability to choose from 12 to 96 months​​ of repayment.

Prequalifying does not impact your credit score, giving you a clear idea of your borrowing status without the negative effects of a hard credit pull.

• Skip a payment with some of its lending partners
• Up to 90 days of initial payment relief
• Check your rates without affecting your credit score

LightStream

Best for no fees

4.7 _/5

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Why LightStream is one of the best

LightStream offers competitive rates for those with excellent credit, making it an ideal option for borrowers looking to save on interest. And with its Rate Beat program, it promises to beat any rate a competitor offers by 0.10%.

LightStream offers loans from $5,000 to $100,000 without vehicle appraisal or age and mileage restrictions. Repayment terms range from 24 to 84 months, with competitive interest rates​​.

LightStream’s hassle-free online application and straightforward approval process ensure a smooth borrowing experience.

• Low rates for good credit borrowers
• Rate Beat program can offer lower rates than other lenders 
• Quick online application and response process

Carputty

Best for lifetime financing

4.6 _/5

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Why Carputty is one of the best

Carputty is an exceptional choice for lifetime vehicle financing. Once you refinance with Carputty, you gain access to a line of credit that can be used repeatedly for future automotive financial needs, including purchasing new vehicles or covering repairs. This means you can draw from your established line of credit rather than applying for multiple loans over the years.

The online application can be completed in minutes, and pre-approval doesn’t affect your credit score, reducing the initial financial impact. Once you’re part of the Carputty system, you benefit from their V³ Valuation™ tool, which helps track the value of your vehicles and informs you of the best times to buy or sell.

These features, combined with the assurance that your credit line and its terms can last a lifetime, position Carputty as a superior choice for those looking to refinance their auto loans with a view toward sustained, hassle-free management of their vehicle financing needs.

• Receive a line of credit of up to $250,000
• Use your funds to refinance and cover all expenses for multiple vehicles over time
• Check your rates without impacting your credit

OpenRoad Lending

Best for bad credit

4.5 _/5

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Why OpenRoad Lending is one of the best

OpenRoad Lending is a standout choice for individuals seeking auto loan refinancing, especially those with bad credit. It accepts credit scores as low as 480, making it accessible to many who might struggle to find financing options elsewhere.

Its online application checks your eligibility with several lenders and runs a soft credit check so your credit score won’t be impacted.

OpenRoad Lending takes a comprehensive approach to vehicle financing by offering additional services like GAP coverage and extended service contracts to its customers.

• Can find solutions for borrowers with credit scores as low as 480
• Refinance between $10,000 and $100,000
• Checking your rate doesn’t impact your credit

Should you refinance your auto loan with these companies?

Not sure when refinancing your auto loan makes sense? Consider a car loan refinance in the following scenarios:

• Lower interest rates: If you purchased your car when rates were high, but they’ve since dropped due to changes in the market, you could save a lot of money on interest by refinancing. This could be especially beneficial if you have multiple years remaining on your car loan.
• Improved finances: It’s not just market changes—if your financial situation has changed for the better, it might make sense to refinance. For instance, you might qualify for a lower interest rate if you have a stronger credit score and a lower debt-to-income ratio.
• Tight budget: On the flip side, if your finances have changed—maybe a lower salary or additional bills—and you’re struggling to meet your current monthly payment, it may be worth refinancing the car loan to a longer term. You’ll spend more over the life of the loan, but making your monthly payments more manageable may be the only way to avoid missed payments, repossession, and a big hit to your credit score.

While there are many car refinance options, the options we’ve identified as the best auto refinance companies should be your top choices. Here’s when each one makes sense:

• Lightstream: Choose Lightstream if your finances have improved. Borrowers with good to excellent credit can get low rates on auto loan refinancing through Lightstream.
• OpenRoad Lending: Choose OpenRoad if your finances are not the best they’ve been. Borrowers with bad credit who need to refinance their auto loan to lower their monthly payments have a good chance of approval through OpenRoad.
• Carputty: Choose Carputty if you’d benefit from an open line of credit to cover every aspect of vehicle ownership, from maintenance and repairs to purchasing a new vehicle down the road.
• RateGenius and iLending: Choose either RateGenius or iLending if you prefer an online auto loan refinance marketplace that lets you shop multiple lenders in one place for easy, side-by-side comparisons.

How to receive the lowest auto loan refinance rates

Not everyone is eligible for the lowest rates on an auto loan refinance. To qualify for a refinance car loan at all, you’ll typically need to meet the following requirements:

Item	Requirement
Minimum credit score	600
Maximum vehicle age	Eight years
Maximum loan-to-value ratio	125%
Maximum debt-to-income ratio	50%
Maximum vehicle mileage	100,000 miles

If you do qualify, here are some ways to get lower auto loan refinance rates:

Improve your credit score

Lenders are more likely to offer you a lower rate on your auto loan refinance if you have strong credit. Spend a few months focusing on on-time bill payments and reducing your credit card utilization. When your score has increased notably, apply for a loan refinance.

Prequalify with multiple lenders

Online loan marketplaces make it easy to get prequalified with a soft credit check and compare multiple car loan refinance companies in one place. This means you can find the option with the lowest fees and interest rates.

Reach out to your current lender

After shopping for an auto loan refinance, it’s worth taking the offer to your current lender. They might be motivated enough to keep your business that they’ll match—or beat—that refinance offer by lowering your rate.

How do you know if your auto refinance will save you money?

To determine if an auto loan refinance will save you money, you’ll need to compare two important factors:

• Your current monthly car payment and scheduled payoff date
• The payments you’ll get with the auto loan refinance (plus any fees) and the number of months of the new loan

These factors will vary depending on your remaining auto loan balance, your current interest rate, the new interest rate, your current loan term, and the new loan term. The best way to see this in action is using an auto loan refinance calculator.

The table below breaks down what a possible auto loan refinance may look like for:

• A remaining loan balance of $20,000
• A current APR of 8%
• A new APR of 5%
• 24 months left on current loan
• A new loan term of 36 months

	Current loan	Auto loan refinance
Balance	$20,000	$20,000
APR	8%	5%
Term	24 months	36 months
Monthly payment	$905	$599
Total amount left to pay	$21,709	$21,579

In this example, you’ll lower your monthly payment and pay less in interest over the life of the loan.

Remember that, in many cases, you won’t save money with an auto loan refinance. Instead, your goal may be to lower your monthly payments to make them more manageable, even if you pay more in the long term.

Ask the expert

Erin Kinkade

CFP®

I suggest you first decide the why behind your inquiry to refinance. I don’t recommend refinancing an auto loan unless you can obtain a lower interest rate and terms that fit your budget or you are doing debt consolidation (which is not necessarily part of a refinance). Once you determine your why and do your research, speak with a trusted financial professional, family, or friend to help you determine if refinancing will be an overall economic benefit for you. 

How do you know if your auto refinance will make your monthly payments more manageable?

Auto loan refinances may help you save money over the life of the loan, they may lower your monthly payments, and sometimes, they may do both! But how do you know if an auto refinance will make your monthly payments more manageable?

Term length is the biggest factor in this case. If you refinance at the same rate and simply extend the length of the loan, you’ll lower your monthly premium. But you can also refinance at a lower rate, keep the term length the same, and lower your monthly payment.

The tables below show examples of both:

Same rate, extending term length

	Current loan	Auto loan refinance
Balance	$15,000	$15,000
APR	10%	10%
Term	12 months	36 months
Monthly payment	$1,319	$484
Total amount left to pay	$15,825	$17,424

Lower rate, same term length

	Current loan	Auto loan refinance
Balance	$15,000	$15,000
APR	10%	5%
Term	24 months	24 months
Monthly payment	$692	$658
Total amount left to pay	$16,612	$15,794

Still need help? Using an auto loan refinance calculator is your best bet when determining how much an auto refinance can lower your monthly payments. 

How to apply to refinance your car

Here’s how to refinance your car loan in tk steps:

1. Check your credit: Ensure your credit score is high enough to qualify for a car refinance. If it’s not, spend time improving your credit by paying bills on time and reducing your credit card utilization. You can also check your credit report for errors.
2. Review your budget: Review your current income and expenses to determine how much you can afford to spend each month on a car payment. Make sure any refinancing options you’re considering keep you within that budget.
3. Get prequalified: Research the best auto loan refinance companies and get prequalified with a few with a soft credit pull. Compare rates, terms, fees, and other components of the refinance offer and choose the best one for you.
4. Apply: Gather the necessary documents and follow the steps online or in person if refinancing an auto loan with a bank or credit union. If approved, follow your lender’s steps for setting up your new loan with them. Ensure your old loan is paid off and closed before you stop making payments.

How long does it take to refinance an auto loan?

Refinancing a car loan can happen in as little as a day, though it’s common for the process to take up to a few weeks. Some lenders, especially online lenders, can approve your application within minutes and help you quickly set up a new loan account and pay off your existing loan.
That said, more traditional lenders may take a few days to review your application, and then paying off your old loan and transferring the debt to your new lender could take several more days (or even weeks).

If speed is a priority, check with your current lender. Many lenders will refinance their auto loans and may even offer special rates and deals. Since everything will be handled in-house, processing your refinanced car loan is typically much faster.

The table below shows you how long each step of the auto loan refinance process can take:

Step	Time It Takes
Prequalifying with a lender	Less than 10 minutes
Submitting application	Less than an hour
Getting approved	From a few minutes to a few days
Receiving funds	From a few hours to a few weeks

FAQ 

How does refinancing an auto loan affect my credit score?

Every time you apply for refinancing, it triggers a hard inquiry on your credit report that can lower your credit score. The benefits of refinancing can often outweigh the slight drop, making it an option worth considering.

What credit score do I need to refinance an auto loan?

Borrowers with a credit score of 600 or above may have the best chances for approval. However, lenders’ requirements can differ, so it’s crucial to shop around to find the right fit for your credit score.

Can I refinance my car loan with bad credit?

Having bad credit may limit your options, but online marketplaces and other tools can assist you in finding lenders willing to work with borrowers with less-than-perfect credit.

What fees are associated with an auto loan refinance?

Potential fees include an application fee, a lienholder fee, and a state re-registration fee. Always confirm any fees with your lender before proceeding with your refinance.

How often can I refinance my car loan?

There isn’t a set limit to how often you can refinance your auto loan. However, too much refinancing could damage your credit score.

Can I refinance my auto loan if I owe more than my car is worth?

While tricky, it’s not impossible. Some lenders may offer to refinance loans for more than a car’s value, but you might face higher interest rates or fees.

How we chose the best auto loan refinance companies

Since 2019, LendEDU has evaluated auto loan companies to help readers find the best auto loan refinance solutions. Our latest analysis reviewed 462 data points from 21 lenders and financial institutions, with 22 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Higher star ratings are ultimately awarded to companies that create an excellent experience and help borrowers receive lower rates or more manageable payments. This includes offering online eligibility checks, cost transparency, competitive interest rates with no fees, and unique benefits that support borrowers throughout repayment.

Recap of the best auto loan refinance lenders