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7 Best Auto Refinance Companies of 2023
By Stephanie Colestock MONEY RESEARCH COLLECTIVE
Auto Refi Rates tool allows for fast comparison-shopping
As low as 1.49%
N/A
Depends on the lender
Median score above 650
Customers report an average savings of $83 a month
As low as 2.99%
$12k-$100k
Depends on the lender
550
Refinance your car and save on car insurance
As low as 1.99%
Not disclosed
Varies by lender
Varies by lender
Offers traditional, cash-back and lease payoff refinancing
As low as 1.99%
$2.5k-$100k
24-84 months
600
The average price of a new vehicle in the U.S. is now the highest it’s ever been, and that trend shows no signs of reversing itself anytime soon. These high price tags have compelled many drivers to finance their new (or used) car purchases with an auto loan.
Over time, however, car owners may find that their vehicle loan isn’t the best possible financial product for them. If this happens to you, refinancing your existing loan could be a great way to reduce your interest rate, lower monthly payments, remove a co-borrower from your loan — or all three.
Though it may sound complex, refinancing — which involves replacing your current auto loan with a new loan and terms — can be a simple process that, in many cases, you can begin online in just a few minutes. Here’s a look at our seven choices for the best auto refinance lenders in 2023 and what you can expect from the refi process.
Our Top Picks for the Best Auto Refinance Companies
LendingTree: Best Overall
RateGenius: Best for Less-than-Ideal Credit
Upstart: Best for Truly Personalized Rates
Caribou: Best for Added Features
AutoPay: Best for Refinance Loan Options
LightStream: Best for Older or High Mileage Cars
OpenRoad Lending: Best for Cars with Negative Equity
Best Overall: LendingTree
- Easy, online application process
- Explore lender and loan options without affecting your credit score
- Expansive library of financial resources and tools
- Wide range of loan terms
- Available in all 50 states
- Refi offers can vary greatly from one lender to the next
- Loan limits
- Vary by lender
- APR
- As low as 2.24%
- Terms
- 12 to 96 months
As a trusted financial resource and lender aggregator, LendingTree gets our nod for the best overall auto refinance platform. Through LendingTree, you can not only shop around for the best rates and loan terms from a number of different partner lenders, but you can also utilize the site’s library of content, financial tools and other resources designed to educate and guide consumers.
LendingTree’s auto loan refinance process involves a quick online loan application with no hard credit check. Interest rates can be as low as 2.24% APR (annual percentage rate), depending on the lender and your specific loan needs. However, it’s difficult to gauge exactly what your loan and vehicle limits will be before going through this process, as they can vary widely from one Lending Tree’s partner to the next.
Best for Less-Than-Ideal Credit: RateGenius
- Competitive rates, even for borrowers with fair or poor credit
- Higher vehicle age and mileage limits than many other lenders
- Apply in minutes online or over the phone
- Co-applicants allowed
- Existing loans must have 24+ months of payments remaining
- Low maximum loan limits
- Hard credit inquiry required
- Approval can take as long as 48 hours
- Loan limits
- $10,250 and $55,000
- APR
- As low as 2.99%
- Terms
- 36 to 72 months
RateGenius offers auto loans to borrowers with a range of credit scores, with rates of just 11.84% APR even for borrowers with poor credit (a FICO score of 639 or less). This makes them our pick for borrowers with low(er) credit scores, as long as their vehicle and auto loan meet this lender’s other requirements.
To qualify for a refi through Austin-based RateGenius, existing auto loans must have a remaining balance of at least $10,250 and 24+ months of loan payments left. Your vehicle also has to be less than 12 years old and have less than 120,000 miles on the odometer to qualify. You can apply with a co-borrower – something many of the other refi lenders don’t allow. RateGenius requires your new loan to have an LTV (loan-to-value) of less than 125%, and for borrowers to have a debt-to-income (DTI) ratio that doesn’t exceed 50%.
Best for Truly Personalized Rates: Upstart
- Rates are customized
- No fees
- Mileage limits as high as 120,000
- Low credit score requirement
- Excellent consumer ratings
- 24+ payments must be remaining on your current loan
- Your car cannot be more than 10 years-old
- Not available in Nevada and Maryland
- Loan limits
- $9,000 to $60,000
- APR
- Varies by state, maximum of 29.99%
- Terms
- 24 to 84 months
While your credit history is a key factor anytime you apply for a new loan, Upstart offers “smarter rates” that take into account more than just your credit score. Their proprietary platform calculates your auto refi loan’s interest rate based on factors such as your credit rating, your employment, and even your level of education, making them our top pick if you want truly customized loan terms. A minimum credit score of just 510 is required for approval.
Upstart will refinance cars up to 10 years old with as many as 120,000 miles, as long as there are at least 24 payments remaining with the current lender. There are no origination, application or prepayment fees through Upstart, and loan limits go as high as $60,000. Upstart auto loan refinancing is available in all states except Maryland and Nevada. The company currently has a rating of 4.9 out of 5 stars on TrustPilot, with more than 35,000 consumer reviews.
Best for Added Features: Caribou
- Apply online without submitting your SSN
- Various add-on products available to make car ownership easier
- Vehicles up to 12 years old can be refinanced
- Possible loan fees
- Best rates only available in some states
- Loan limits
- Not disclosed
- APR
- 4.99% to 28.55%
- Terms
- 36 to 72 months
If you’re looking to refinance your auto loan to cut costs, but are also interested in other ways to save money on your car, Caribou is our top suggestion. This platform offers a variety of add-on features and services through its platform of providers and lenders. These added features include gap coverage, key replacement coverage, a network of trusted auto insurance carriers, and even cosmetic care packages to keep your car looking nice. Depending on the features you need, you may even be able to bundle services together to save more.
Though some refi lenders limit refinancing to vehicles that are less than eight or 10 years old, Caribou allows you to refi cars that are up to 12 years old. Your new loan’s terms can range from 36 to 72 months in length, though this may vary depending on the lender you choose. It’s also important to note that while Caribou refinance loans can have an APR as low as 4.99%, that rate is reserved for well-qualified borrowers with loan terms of up to 36 months and only in select states.
You can apply online in minutes without affecting your credit or even entering your SSN, and be matched with offers from Caribou’s trusted network of lenders. Once you choose a lender and refi loan, Caribou will charge your new lender a processing fee of $399. That lender may or may not pass this fee on to you, which could result in a more expensive refinance loan.
Best for Refinance Loan Options: AutoPay
- Rates starting at 2.99% APR
- Loan amounts from $2,500 to $100,000
- Soft pull online pre-approval
- Additional services and products available
- Wide range of loan limits
- Down payment can be required
- Prepayment penalties may apply
- Car must be 10 years old or younger
- Loan limits
- $2,500 to $100,000
- APR
- As low as 1.99%
- Terms
- 24 to 96 months
AutoPay is a flexible, online lending platform that allows you to do more than the typical refi lender does. Rather than merely offering to refinance your vehicle with a traditional refi loan, AutoPay lets you utilize a cash-back refinance or even apply for a lease payoff refi.
With cash-back refinance, you can pull out a portion of your vehicle’s equity (the difference in your vehicle’s market value compared to how much you still owe), up to $12,000. These funds can then be used to pay off high-interest debt, make a big purchase or take your family on vacation. With a lease payoff refi through AutoPay, you can also choose to keep a leased vehicle at the end of your agreed term, pay off your lease ahead of schedule or use the loan to avoid certain lease fees that you would otherwise incur.
Refinance loans from AutoPay are available on vehicles up to 10 years old with as many as 150,000 miles. You can get your rate online in minutes without hurting your credit, and loans are offered for as little as $2,500 or as much as $100,000.
Best for Older or High-Mileage Cars: LightStream
- Same-day funding is possible
- No mileage or age limits
- Autopay discount available
- AutoPay can only be added before loan funding
- Borrowers with good credit may find lower interest rates elsewhere
- Loan limits
- $5,000 to $100,000
- APR
- 8.24% – 15.69% APR w/ AutoPay
- Terms
- 24 - 144 months
If you’re looking to refinance an older vehicle – or even a younger vehicle with a lot of miles – LightStream may be the answer. This lender earns our nod for offering auto refinance loans on the same day your application is submitted, regardless of the vehicle’s mileage or age.
There are no fees and an autopay discount of 0.50% APR is available to help reduce your interest rate, as long as it’s applied before your new loan is funded. While there’s a wide range of loan limits, the lowest interest rates are still higher than some other lenders offer; because of this, borrowers with very good or excellent credit may be able to find more affordable refi loans from other lenders.
Best for Cars with Negative Equity: OpenRoad
- LTV of up to 175% allowed
- Mileage limits up to 140,000
- Cash-back refinancing is available
- Cars must be eight years old or newer
- Hard credit pull required
- Not available to self-employed owners
- Loan limits
- $7,500 to $100,000
- APR
- As low as 1.99%
- Terms
- 24 to 72 months
If you are upside down on your vehicle’s loan (meaning that you owe more on the car than it’s worth), you may find it difficult to refinance your auto loan. But OpenRoad Lending allows auto refinance loans with a loan-to-value (LTV) limit of 125%, making it our top pick for drivers with negative equity or high loan values.
For some borrowers who meet credit score requirements, the LTV can be bumped up to 175%. In some states, a cash-out refinance is even allowed; this enables you to pull some of your vehicle’s equity in cash.
While the to-be-refinanced vehicle does need to have a current loan with another FDIC or NCUA financial institution, it doesn’t matter how many car payments are left. As long as the car is eight-years-old or newer, has less than 140,000 miles, and requires a loan between $7,500 and $100,000, you’re eligible to apply for a refi through OpenRoad Lending. The company doesn’t offer a prequalification option, however. Checking your rates and potential loan terms will result in at least one hard inquiry.
To be eligible for OpenRoad Lending, you’ll need to have a gross monthly income of at least $1,500. It’s important to note that rideshare earnings — like driving for Uber — don’t count toward this requirement, even if it’s your primary source of income. OpenRoad also doesn’t accept applicants who are self-employed.
Other companies we considered
In addition to the top companies listed here, there are a few other lenders we also considered.
Offering both refinance loans and lease buyouts with competitive interest rates, RefiJet is worth considering for borrowers with a wide range of credit scores. Vehicles must be less than 10 years old, however, which limits the number of applicants who may qualify.
LendingClub is a loan marketplace that matches borrowers to loan offers from different lenders with competitive repayment terms. Interest rates can vary considerably, however, with low rates starting at just 2.99% but reaching 24.99% APR on the higher end. Vehicles must also be younger than 10 years old and have less than 120,000 miles to qualify.
Auto Refinancing Guide
Not sure if an auto refinance loan is right for you? Here are some of the most frequently asked questions.
How does refinancing a car work?
An auto loan refinance works the same way that student loan refinance, debt consolidation loans, or mortgage refinance does. Put simply, you’re taking out a new loan with new terms, a new monthly payment, and a new interest rate; this new loan will be used to pay off (or satisfy) and replace your existing loan.
The original account will be closed and moving forward, you will only be responsible for repaying your new refinance loan.
When can you refinance a car loan?
Many lenders will require you to wait between one month and six months after the purchase of your vehicle before you refinance your auto loan. You may also be required to have a certain number of payments remaining on your original loan (often 24+) in order to refinance.
Beyond that, you can pretty much refinance any time during your loan repayment period, as long as you meet the lender’s requirements regarding your vehicle’s age, mileage and loan amount. You’ll also need to meet certain credit score requirements, especially if you want a chance at qualifying for the best rates and loan terms (though borrowers should take note of auto loan rate discrepancies, even if they have a high score).
These requirements differ from one lender to the next and also depend on whether your lender uses VantageScore or FICO scores to assess your creditworthiness.
How to refinance a car loan
Here’s what to expect from the refi process once you decide that it’s the right move for you.
6 steps to apply for auto refinancing
If you’ve considered refinancing your auto loan, there are a few steps you’ll need to take.
- Gather your existing loan documents. A potential lender will want to know how much you currently owe on your existing loan, and how much your monthly payment is currently.
- Know your vehicle details. You’ll likely be asked to provide specifics about your vehicle, including your model and year, the VIN and your current mileage.
- Provide personal financial information. To qualify for a refinance loan, you’ll often be asked questions about your personal finances, employment history and income. This might mean providing a lender with information about your annual income, monthly debt obligations, existing liquid assets and more.
- Apply and shop for the best rates. When the time comes to find the best auto loan refinance, there’s no harm in rate-shopping multiple lenders. As long as you apply for each loan within a certain timeframe (typically 14 days), multiple inquiries on your credit will only count against your score once. This rate-shopping rule — along with using lender platforms to apply with many lenders at once — can help you find the best possible rate for your loan.
- Provide any required documentation. Once you’ve chosen a loan and lender, you may be asked to upload or fax certain documents. This could include a copy of your current loan statement, your recent pay stubs or W-2, and your bank statements.
- Begin paying down your new loan. After your refinance loan has been funded, you’ll want to keep an eye out for your first statement and due date. Then begin paying off your new loan as scheduled until the debt is fully satisfied (or you refinance again).
Documents needed for a refi
Depending on your lender, applying for and taking out a refinance loan can often mean providing a number of different documents. These often include the following:
- Proof of identity (your driver’s license, Social Security number/card, or other government ID)
- Proof of employment/income (current paystubs, W-2 or 1099 forms, past tax returns)
- Existing loan documents (including the account number and current loan balance)
- Current proof of insurance (and if you’re in the market for a new policy, check out our picks for the best car insurance companies)
How to refinance your car loan with bad credit
In general, the better your credit score, the better rates and loan terms for which you will qualify. But this doesn’t mean that you can’t still refinance your auto loan with bad credit; it just might be a bit more challenging.
Many lenders, such as RateGenius, offer refi loans to borrowers who have less-than-perfect credit. And if you already have a good relationship with your local bank or credit union, you may be able to request manual underwriting and still get approved for a loan. As long as you meet other requirements — such as your vehicle’s age and mileage, your income and debt balances, etc. — you may still qualify for a refinance loan. Just note that your interest rate will likely be higher the lower your credit score is.
In some cases, it can make sense to fix your credit (or at least, try to improve your score by a few points) before applying for a refinance loan. This can make you eligible for better loans and term lengths, and save you even more money along the way. You can tackle this on your own or even enlist the help of our best credit repair companies.
How We Chose the Best Auto Refinance Companies
Before deciding on our picks for the seven best auto refinance companies, we considered a slew of factors and features. We looked at the types of loans provided by each company as well as the interest rates they offered to consumers. We compared the loan terms and borrowing limits and looked at the different eligibility requirements that each lender (or lending platform) enforced. Lastly, we considered the types of vehicles that could be refinanced by each of these companies, as well as their availability throughout the country.
Summary of the 7 Best Auto Refinance Companies of 2022
LendingTree: Best Overall
RateGenius: Best for Less-than-Ideal Credit
Upstart: Best for Truly Personalized Rates
Caribou: Best for Added Features
AutoPay: Best for Refinance Loan Options
LightStream: Best for Older or High Mileage Cars
OpenRoad Lending: Best for Cars with Negative Equity
Stephanie Colestock is a DC-based personal finance writer with nearly 11 years of freelance writing experience. She covers a wide range of finance-related topics and is currently working toward her CFP®️ certification. Her work appears on sites such as Business Insider, MSN, Fox Business, CNET, Investopedia, and more.