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Auto Loans

5 Best Auto Loan Refinance Companies



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Best for Lowest Rates
Best for Variety of Financing OptionsBest OverallBest for Comparing Quotes from a Variety of LendersBest Reputation
PenFedRefiJetLightStreamRATEGENIUSBank of America
Our PartnerOur PartnerOur PartnerOur Partner
APR

Starts at 1.79%

Starts at 2.49%

Starts at 2.49%

Starts at 2.48%

Starts at 3.19%

Minimum Credit Score

610

600

660

550

Not disclosed

Loan Terms

36–84 months

36–72 months

36–84 months

36–72 months

48–72 months

Maximum Loan Amount

$100,000

$150,000

$100,000

$55,000

$150,000

Best for Lowest Rates
PenFed
Our Partner
View Rates
APR

Starts at 1.79%

Minimum Credit Score

610

Loan Terms

36–84 months

Maximum Loan Amount

$100,000

Best for Variety of Financing Options
RefiJet
Our Partner
View Rates
APR

Starts at 2.49%

Minimum Credit Score

600

Loan Terms

36–72 months

Maximum Loan Amount

$150,000

Best Overall
LightStream
Our Partner
View Rates
APR

Starts at 2.49%

Minimum Credit Score

660

Loan Terms

36–84 months

Maximum Loan Amount

$100,000

Best for Comparing Quotes from a Variety of Lenders
RATEGENIUS
Our Partner
View Rates
APR

Starts at 2.48%

Minimum Credit Score

550

Loan Terms

36–72 months

Maximum Loan Amount

$55,000

Best Reputation
Bank of America
View Rates
APR

Starts at 3.19%

Minimum Credit Score

Not disclosed

Loan Terms

48–72 months

Maximum Loan Amount

$150,000

Many people consider refinancing a vehicle when their budgets are under pressure. Refinancing your auto loan can help reduce your current interest rate and monthly repayment while decreasing the total interest you pay. A recent report from RateGenius indicated there was an “average interest rate reduction of 5.5% for every refinanced auto loan.”

Given the potential for lowering your debt, it’s certainly an option worth thinking about, especially with the bonus of saving in the long run. Although there are many reputable lending institutions in the industry, we’ve looked specifically at those that provide the most affordable rates while offering flexibility on loan terms and credit profiles. Read on to discover our picks for the 5 companies with the best auto refinance rates to maximize your savings and make refinancing your vehicle easier.

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The Most Important Factors for Finding Reputable Auto Loan Refinance Companies

If you’re considering refinancing your current auto loan, keep the following points in mind:

  • Prepayment penalties on your current loan
    Some lenders penalize you for settling your debt earlier than expected. If yours contains this clause, check whether this cost outweighs the benefits of refinancing your car.
  • Vehicle age and mileage
    Many companies won’t finance cars older than 10 years or with mileage exceeding 120,000.
  • The loan balance vs. the value of your car
    Most businesses won’t offer auto refinancing if your current loan is higher than the vehicle’s market value.
  • Credit score and history
    The state of your financial records will limit your choice of lenders. Some require an excellent credit history and score or will typically price the risk of your lower score into the deal. Essentially, you might end up paying more due to your credit profile if it’s weak.
  • Payment history
    If you’ve been making your current car payments, you should have no problem qualifying for refinancing. Unfortunately, many lenders are hesitant about taking on consumers who’ve defaulted on their monthly commitments; they appear far riskier than the average customer.
  • The amount you need to refinance
    Lenders often limit the amount they’re willing to fund you. Typically, the maximum amounts offered range between $100,000–150,000.

The 5 Best Auto Loan Refinance Companies

View Rates

Best Overall: Lightstream

LightStream offers hassle-free lending solutions to consumers in need. It provides flexible loan terms at low, fixed rates and transfers the cash directly into your bank account once the application has been approved. The process is simple and efficient, and you can do it online. LightStream has a convenient rate calculator that supplies the monthly payment, APR, and loan term based on the loan amount entered. This gives you a quick snapshot of the affordability of refinancing your car.

It doesn’t charge any additional fees or prepayment penalties (in the case of settling the debt earlier than agreed). LightStream extends a loan experience guarantee to its customers. Basically, if you’re unhappy with the process within 30 days of receiving your loan, it will send you $100. Typically, when a company offers this type of guarantee, it instills a higher level of confidence in its ability to provide a good service.

Pros
  • Offers affordable rates
  • No restrictions on the age or mileage of your car
  • Same-day deposit of funds if necessary (pending an approved application)
Cons
  • Only refinances loans between $5,000–100,000
  • Requires excellent credit histories and scores of 660 minimum—if yours is lower, you'll likely qualify for a loan at a higher interest rate
View Rates

Best for Lowest Rates: PenFed Credit Union

Based on our research and list of the best auto loan refinance companies, PenFed Credit Union provides the lowest interest rates to consumers in the market. You can finance up to 125% of the balance owed, with payment terms ranging from 36 to 84 months, so you’ll have control over how much you’ll need to settle monthly.

Penfed offers GAP protection; it writes off the difference between the amount your insurer pays out and your loan value (if the loan value is higher). This is useful if your vehicle is stolen or damaged. Additionally, its debt protection cancels your remaining loan balance or monthly payments due to a disability, death, or loss of employment.

Pros
  • Online calculator shows your proposed monthly repayment, loan term, and APR
  • Offers low rates of 1.79% for new cars and 2.39% for used ones
  • Refinances loans from as low as $500 (beneficial to those with small outstanding balances)
Cons
  • Requires scores of 610 minimum—lower ones may mean your application is denied, granted at shorter loan terms, or charged a higher APR
  • Membership required to initiate financing
View Rates

Best for Comparing Quotes from a Variety of Lenders: rateGenius

RateGenius connects consumers with over 150 lenders in the industry to provide you with the best auto refinance rates. Its online platform keeps the loan process user-friendly. After entering a few details, you can compare different offers or get a prequalification with a soft credit check. Alternatively, you can directly accept an offer after a hard credit check has been completed.

It applies leniency when considering credit profiles, so it could be a good option if you’re trying to increase your score but urgently need funds to save cash in the interim. rateGenius is staffed with loan experts who assist you through the entire process. If refinancing your vehicle overwhelms you, this company will help from start to finish.

Other than its origination fee of $395, there are no additional costs or prepayment penalties. This is a great choice if you’re wary of hidden costs or penalties for settling your debt earlier.

Pros
  • Excellent auto refinancing tools and resources available on its website
  • Compare quotes from multiple lenders to find the most cost-effective option
  • Get assistance across varying credit scores
Cons
  • Extends loans to a maximum of $55,000
  • Refinances vehicles under 12 years old with a mileage not exceeding 120,000
View Rates

Best Reputation: Bank of America

Our research concludes that Bank of America is one of the best auto refinance banks on the market. It has a strong focus on meeting its customers’ needs, offering competitive rates, a straightforward online application, and flexible loan terms. It claims to provide you with the outcome of your case within minutes. This is especially crucial if you have an urgent need (e.g., your monthly loan payment is due soon and you’re low on funds).

We also like that it’s the only business on our list that will consider refinancing existing loans held with the company. The bank has a 240-year history as a trusted financial institution, which is crucial when you’re considering borrowing.

Pros
  • Discounts offered to rewards members
  • Extensive resources on car loans and refinancing on its website
  • Funds your auto debt up to $150,000
Cons
  • Vehicles must be under 10 years old with fewer than 125,000 miles
  • Refinances cars valued at $6,000 or more
View Rates

Best Variety of Financing Options: RefiJet

RefiJet is a highly experienced auto refinance company that offers a wide range of financing options to its customers through a large network of lenders. It focuses on providing consumers with affordable choices so they feel in control of their financial situation. RefiJet is flexible with its credit requirements and lends funds to individuals with various credit profiles.

We believe it’s one of the best auto refinance options for those with low scores who’re keen to shave off some of the interest they pay in the long term. The company’s team of qualified agents works with you from the initial application to the completion of the process when the funds reach your account. You can get a prequalification in minutes, with no effect on your credit score.

This provides you with a basic idea of the coverage you’ll receive and the costs you’ll incur. RefiJet’s additional services include car lease buyout loans and cash-out refinancing—your current mortgage is replaced with a larger one, and you pocket the difference in value.

Pros
  • Offers affordable APRs
  • Covers motorcycles, cars, and other personal use vehicles
  • Helps consumers with varying credit histories
Cons
  • Vehicles can't be older than 10 years or have more than 150,000 miles
  • Full online applications aren't possible; however, staff will assist you with the paperwork

Other Auto Loan Refinance Companies We Considered

Auto Approve Review

Auto Approve is an auto loan broker that matches you with a suitable lending institution to save money on your current car loan. Although it wasn’t added to our list of the best auto refinance companies, we believe it’s a strong runner-up. This is because it works closely with banks and credit unions to find you the lowest rate possible.

Auto Approve claims to offer you the exact rate from the lenders without any markup. Basically, you’ll get a similar rate to the one you’d have received if you negotiated directly with the institution—without any of the hassle. Unfortunately, you must have an excellent credit history and score to qualify for its efficient services.

Pros
  • Rates start from as low as 2.25%
  • Offers loan terms ranging from 12 to 84 months
Cons
  • Doesn't refinance vehicles that are 10 years old or older
  • Low credit scores may affect your ability to obtain financing
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How We Found the Best Auto Loan Refinance Companies

When researching and compiling our list of the 5 best car refinance companies, these were the most important attributes we considered:

Annual percentage rate (APR)
We selected companies providing affordable interest rates that would also typically be lower than your current rate, aiming to save you money on a monthly and overall basis. The need to save money is one of the main reasons consumers consider refinancing their auto loans, and the institutions listed above can certainly help.

Loan details
We focused primarily on organizations that offer a flexible range of loan terms and cover large loan amounts. This gives you more control over how much you pay and offers suitable coverage if you have a large outstanding balance.

Credit Profiles
We included firms that provide refinancing to customers with varying credit histories and scores. We want you to have the option of refinancing, even if your credit score is not as high as you’d like it to be.

What You Need to Know About the Best Auto Loan Refinance Companies

FAQ

When should you refinance your car loan?

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You should refinance when the current interest rate is lower than the original rate you received or if you're struggling to meet your payments and need to reduce your monthly amount.

Is it worth refinancing my car loan?

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Yes. Refinancing generally offers lower rates than your current rate, and the remaining balance can be spread over a longer period. This helps because you'll pay less each month and lower your total interest.

Can I refinance my car with a credit score of 500?

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Yes, many companies, including those on our list, assist individuals with scores as low as 500 or with average credit profiles. That said, you might incur a higher interest rate due to the lower score.

How soon can you refinance a car loan?

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Many businesses claim to transfer the funds needed to refinance auto loans on the same day or within a few days of submitting the application.

How do you refinance a car?

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Complete an online application with one of the listed entities above. Once approved, choose an appropriate loan term and APR from the quotes you receive. The institution will transfer the funds to you to pay off your current vehicle loan. You'll then start paying off the new loan as agreed.

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