If you’ve visited a car dealership lately, you know how expensive new vehicles are right now. With the average price of new cars surpassing $41,000, it’s no surprise that over 80% of new cars were financed with auto loans. If you have a high-interest auto loan, refinancing to get a better rate can be a smart financial decision. We researched 25 leading auto loan lenders and identified the best auto refinance loans based on their rates, fees, terms, and eligibility requirements (borrower and vehicle). Depending on when you took out the loan and your credit profile, your car loan may have a high rate. According to a report by Experian, the average rate for those with deep subprime credit—meaning a credit score between 300 and 500—was a whopping 13.42%. Best Auto Refinance Loans Best Auto Refinance Loans Final Verdict Auto Loan Rates by Credit Score How to Choose FAQ Methodology Pros & Cons Pros Loans can be funded on the same day you apply Low loan minimum Low rates Finance up to 125% of vehicle’s value Membership open to the public Cons Longer loan terms have different restrictions Cannot refinance an existing PenFed loan Must join credit union Why We Chose It PenFed is our top auto loan refinance lender for a variety of reasons. Most lenders will take at least a day to disburse your loan funds, but PenFed Credit Union is fast—according to customer support, your auto loan funds can be sent the same day you apply. PenFed allows a broad range of loan amounts, as well; you can refinance as little as $500 or as much as $150,000.And to top it off, its minimum rates are almost as low as they come, giving you a chance to refinance and save a lot of money if you have good credit. The maximum amount you borrow isn’t limited to your car’s value; PenFed offers refinancing for up to 125% of the vehicle’s value. You can use this option to borrow against your car and get cash for upcoming expenses or to consolidate high-interest debt. And while some credit unions are limited to select groups, Penfed Credit Union’s membership is open to the general public. You can join PenFed by opening a savings account with as little as $5, and PenFed will even provide the funds if you’re approved for an auto loan. PenFed’s auto loan refinancing program cannot be used to refinance an existing PenFed loan. And if you opt for a longer loan term, such as 84 months, you’ll pay a significantly higher interest rate. Borrower Qualifications PenFed does not disclose its income or credit requirements, but it does allow you to pre-qualify for a loan and view your options without affecting your credit score. Vehicle Qualifications Pros & Cons Pros Co-applicants permitted Loan amounts up to $100,000 Financial hardship options Cons High-mileage cars ineligible for refinancing Unclear fees and penalties Good to excellent credit required Why We Chose It Many borrowers like the comfort of working with a large bank to take out a loan. When you borrow from a major bank like PNC, you know that the lender is reputable and reliable, and if you’re an existing bank customer, you may be eligible for discounts or other benefits. With PNC Bank, customers can refinance their auto loans and qualify for competitive rates. And if you sign up for automatic payments with a PNC checking account, you can qualify for a 0.25% interest rate reduction. PNC also has hardship options for borrowers who experience financial difficulties like unemployment, illness, or other unexpected life events. You may be eligible for a loan modification that makes your payments more affordable, or other solutions. Borrower Qualifications PNC’s annual report showed that the majority of approved auto loan borrowers had a score of 720 or higher. Vehicle Qualifications Pros & Cons Pros Accepts a wide range of credit levels Multiple refinance options Allows co-applicants Cons Does not disclose eligibility requirements Origination fees may apply Why We Chose It Shopping around for auto loan refinancing can be time-consuming, but AUTOPAY can simplify the process. After you fill out just one form, AUTOPAY will connect you with offers from its partner lenders, and if you have good credit you may be offered some very low rates. AUTOPAY’s lenders have competitive rates and terms as long as 96 months. AUTOPAY offers flexible loan amounts with fairly low minimums; you can borrow as little as $2,500. And AUTOPAY’s partners provide the following refinancing options: Loan terms, rates and fees vary by lender, but many of AUTOPAY’s partners charge origination fees. While some lenders offer loan terms as long as 96 months on refinanced auto loans, think twice before opting for such a long term. You’ll pay much more in interest—use our auto loan calculator to see how your loan term affects your total repayment cost. Borrower Qualifications Vehicle Qualifications Pros & Cons Pros Autopay discounts Loan options for motorcycles and other vehicles Membership not required for a loan (according to customer support), but open to the general public Cons Unclear borrower requirements Must provide Social Security number to view rates Higher rates for older cars Why We Chose It Credit unions are nonprofit organizations that can be excellent resources for loans. Because they’re nonprofits, they often have lower rates and fees than other lenders. Consumers Credit Union members can qualify for a 0.25% rate reduction. And Consumers Credit Union will refinance more than just your typical car or truck; it also offers refinancing for motorcycles and recreational vehicles. Some credit unions have strict membership requirements, but Consumers Credit Union doesn’t require membership for auto loans. If you would like to join, you can pay $5 to the credit union’s sponsor, the Consumers Cooperative Association, and deposit and maintain a minimum balance of at least $5 in a Consumers Credit Union savings account. Borrower Qualifications Consumers Credit Union doesn’t disclose its minimum credit score and income requirements. And to view rates, you must provide your Social Security number. Vehicle Qualifications Pros & Cons Pros Quick loan funding No appraisals No restrictions on vehicle age or mileage Cons Higher interest rates Very good to excellent credit required Cannot refinance LightStream loans Why We Chose It For those looking for a quick and easy refinancing option—or those who own older or high-mileage vehicles—LightStream could be a good choice. Its auto refinancing loans are similar to personal loans, meaning they’re unsecured. While these loans have higher rates than you may find elsewhere, LightStream doesn’t have any limitations for vehicle age, model, or mileage, and the application process won’t be as rigorous. Plus, LightStream boasts rapid loan disbursem*nts. You could receive the loan funds as soon as the same day you apply. Not everyone can qualify for a loan through LightStream. The lender typically only accepts borrowers with very good to excellent credit, but you can apply with a co-applicant to improve your odds of qualifying for a loan. Borrower Qualifications Vehicle Qualifications Pros & Cons Pros Low APRs available Works with borrowers with fair credit High maximum mileage Cons Will not work with self-employed borrowers May charge origination fees Not available in all states Why We Chose It Since its launch in 2009, OpenRoad Lending has grown to provide auto loan and refinancing options. Through its network of lenders, borrowers with fair credit can qualify for loans, while applicants with the best credit may qualify for extremely low rates. And while some lenders limit refinancing to vehicles with 80,000 miles or less, OpenRoad offers refinancing for vehicles with mileages as high as 160,000 miles. OpenRoad Lending has some unusual drawbacks. It isn’t available nationwide, and it will not work with self-employed borrowers. And income from Uber or other rideshare companies does not count towards OpenRoad Lending’s income requirements. Borrower Qualifications Vehicle Qualifications Refinancing an existing auto loan can be a good way to save money or lower your monthly payments. The best auto refinance loans offer competitive interest rates and allow you to customize your loan term to meet your budget. PenFed is our recommended first stop; although it's a credit union anyone can join, and its rates and terms are attractive enough to make it worth the effort. If you’re looking for the security of a big bank, PNC allows you to refinance up to $100,000, and you can have as long as seven years to repay the loan. For those who want a cash-out refinance option or a variety of offers, AUTOPAY is a marketplace that lets you view rates from multiple lenders. When evaluating your options, it’s wise to get quotes from multiple lenders so you can find the lowest auto loan refinance rates based on your creditworthiness. Getting a good auto loan doesn’t have to take long, but it’ll pay to explore your options. Auto loan refinancing scams are common. Red flags to watch out for include upfront enrollment fees or advising you to stop making payments on your existing loan. Source: Experian: State of the Automotive Finance Market Q4 2022 By refinancing your auto loan, you can replace your existing loan with a new one with different terms. Auto loan refinancing can be advantageous in the following scenarios: Refinancing isn’t for everyone, particularly if you’re in one of the following scenarios: When comparing auto refinance lenders, keep the following factors in mind: If you can’t afford your auto loan payments, contact your lender right away. You may be eligible for a loan modification or payment deferral. Refinancing an auto loan is usually more time-consuming than refinancing an unsecured personal loan or student loan. Because auto loans are secured, there are some extra steps you need to complete. Shop around: Rates, terms, and fees vary by lender, so shop around and request quotes from multiple companies. Fill out an application: Once you find a lender, you can complete an application. Many lenders allow you to apply online, but you’ll need to provide the following documents: Review terms: The lender will review your application and assign your vehicle a value based on industry data. If the lender approves your application, it will send you a loan agreement that outlines the loan terms and fees. Sign the agreement: Carefully review the loan agreement, paying particular attention to origination fees and prepayment penalties. If everything looks good to you, sign the agreement and return it to the lender. The lender will pay off your existing loan for you, and will send you instructions on how to make payments toward the new loan. Although you can refinance immediately after buying your vehicle if you’d like, it may not make sense to refinance so soon. Every time you apply for a loan, your credit score will dip, and taking out a new loan can cause your score to decrease. Instead, it may be a better idea to wait a few months to improve your credit and establish a positive payment history before exploring your refinancing options. There isn’t a limit on how many times you can refinance an auto loan. However, refinancing may involve origination fees and transfer fees, so it may not be a financially wise decision. And it also can be a time-consuming process; refinancing can take about two weeks to complete in some cases. Generally, lenders determine how much you can borrow based on your car’s current value. If you owe more on your existing loan than your car is worth, you may find that fewer lenders are willing to work with you. Because you’re upside-down on the loan, there is more risk to the lender; if you default on the loan, the lender would get a smaller amount back by selling the car and incur a loss. Some lenders will refinance cars that are worth less than the outstanding loan amount, but they typically charge much higher rates. Refinancing a car loan can affect your credit score in the following ways: However, the impact to your credit is temporary. Over time, you can improve your score by making the payments on your new loan on time every month. And the money you save by refinancing at a lower rate is typically worth the minor credit damage. Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of auto loan lenders. To rate providers, we collected hundreds of data points across more than 20 auto loan lenders, including interest rates, fees, loan amounts, borrower requirements, and vehicle requirements, to ensure that our reviews help users make informed decisions for their borrowing needs. We also conducted a survey of 1,016 auto loan borrowers for attitudes and opinions about lenders and the loan process. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Experian. "State of the Automotive Finance Market-Q4 2022." PNC Bank. "Auto & Car Loan Refinance." PNC Bank. "Annual Report 2022: 10-K." PNC Bank. "Refinance an Auto Loan." Autopay. "Auto Loan Refinance." OpenRoad Lending. "About Us." OpenRoad Lending. "Auto Refinance Questions." Federal Trade Commission. "Auto Loan Refinancing Scams." Experian. "State of the Automotive Finance Market Report." Experian. "When's the Best Time to Refinance Your Car Loan?" Equifax. "Should I Refinance My Car?" Consumer Financial Protection Bureau. "Can I Prepay My Loan At Any Time Without Penalty?" Consumer Financial Protection Bureau. "Worried About Making Your Auto Loan Payments?" Local Government Federal Credit Union. "Upside Down In Your Vehicle Loan?" PenFed Credit Union. "How Many Times Can You Refinance a Car Loan?" Chase. "How to Refinance a Car." myFICO. "How Are FICO Scores Calculated?"Best Auto Refinance Loans of 2024
Best Overall : PenFed
Best Big Bank : PNC Bank
Best Refinance Loan Marketplace : AUTOPAY
Best Credit Union : Consumers Credit Union
Best Online Lender : LightStream
Best for Low Minimum APR : OpenRoad Lending
Final Verdict
Auto Loan Rates by Credit Score
Credit Score Average APR (New Car) Average APR (Used Car) 781-850 4.75% 5.99% 661-780 5.82% 7.83% 601-660 8.12% 12.08% 501-600 10.79% 17.46% 300-500 13.42% 20.62% Guide to Choosing the Best Auto Refinance Loan
When to Refinance Your Auto Loan
Auto Refinance Loans: Factors to Consider
How to Refinance Your Auto Loan
Frequently Asked Questions
When Can You Refinance Your Car Loan?
How Many Times Can You Refinance Your Auto Loan?
Can You Refinance If You Owe More Than What the Car Is Worth?
Does Refinancing Your Car Loan Hurt Your Credit Score?
Methodology
Best Auto Loans for Fair Credit Best Motorcycle Loans for April 2024 Best Used Car Loans for 2024 Best RV Loans of April 2024 Best Private Party Car Loans