Best Auto Loan Refinance Rates in January 2024

Get personalized rates for an auto refinance loan

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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Compare auto loan refinance rates and terms

Written by Amanda Push | Edited by Jessica Sain-Baird and Xiomara Martinez-White | Updated December 27, 2023
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LenderBest for…Starting APRLoan termsLoan amounts
Fast funding4.99%24 to 72 monthsFrom $5,000View Personalized Offers
OpenRoad LendingBad-credit borrowers7.90%36 to 84 months$10,000-$100,000View Personalized Offers
Southeast Financial Credit Union logo #1Short-term loans4.50%12 to 84 monthsNot specifiedView Personalized Offers
Navy Federal Credit Union logo #1Those with military ties4.54%Up to 96 monthsFrom $5,000View Personalized Offers
Special vehicle refinancing5.24%12 to 120 months$10,000-$150,000View Personalized Offers
Cash-back refinancing5.29%24 to 96 months$10,000-$150,000View Personalized Offers
Repayment flexibility5.20%24 to 84 monthsFrom $7,500View Personalized Offers
Using a co-borrower5.99%48 to 96 months$15,000-$150,000View Personalized Offers
Refinancing small auto loans6.84%Up to 84 months$250-$250,000View Personalized Offers
Debt protection5.94%36 to 84 monthsUp to $150,000View Personalized Offers
Refinancing large auto loans6.74%Up to 84 monthsUp to $500,000View Personalized Offers

Read more about how we chose our lenders for the best auto refinance rates.

Top lenders for auto refinancing

myAutoLoan: Best for fast funding

Starting APR4.99%
Loan amountsFrom $5,000
Loan terms24 to 72 months
Minimum credit score600
ProsCons

 Offers small loan amounts

 Funding within 24 hours

 May receive up to four loan offers

 Allows for co-applicants

 Not available in Alaska or Hawaii

 Maximum car mileage of 125,000

 No direct phone number or email address provided on website

OpenRoad: Best for bad-credit borrowers

OpenRoad Lending
Starting APR7.90%
Loan amounts$10,000-$100,000
Loan terms36 to 84 months
Minimum credit score460
ProsCons

 Those with bad credit scores may qualify

 Allows for co-borrowers

 Provides clear eligibility criteria for applicants

 Only offers loans up to $100,000

 May find shorter repayment terms elsewhere

 Self-employed consumers won’t qualify

South East Financial Credit Union: Best for short-term loans

Southeast Financial Credit Union logo #1

Starting APR4.50%
Loan amountsNot specified
Loan terms12 to 84 months
Minimum credit scoreNot specified
ProsCons

 Offers short-term loans

 Option to apply for joint loan

 No mileage or model-year restrictions

 Credit criteria not specified

 Loans require credit union membership

 Few brick-and-mortar branches

Navy Federal Credit Union logo #1
Starting APR4.54%
Loan amountsFrom $5,000
Loan termsUp to 96 months
Minimum credit scoreNot specified
ProsCons

 Long loan terms

 Provides discounts to active duty and retired military members

 Preapproval good for 90 days

 Doesn’t specify loan amounts

 Exclusive to those with military ties

 Must become member before you can apply for a loan

Auto Approve: Best for special vehicle refinancing

Starting APR5.24%
Loan amounts$10,000-$150,000
Loan terms12 to 120 months
Minimum credit score650
ProsCons

 Offers cosigner loans

 Provides special vehicle refinancing

 Offers 24/7 roadside assistance

 Doesn’t specify credit requirements

 May find shorter repayment terms elsewhere

 Doesn’t provide auto eligibility criteria

RefiJet: Best for cash back refinancing

Starting APR5.29%
Loan amounts$10,000-$150,000
Loan terms24 to 96 months
Minimum credit score580
ProsCons

 Offers cash back refinancing

 Those with bad credit may qualify

 Allows for co-borrowers

 Older cars may not qualify

 Unclear credit requirements

 Doesn’t post loan details on website

iLending: Best for repayment flexibility

Starting APR5.20%
Loan amountsFrom $7,500
Loan terms24 to 84 months
Minimum credit score525
ProsCons

 Can skip up to 90 days of payments

 Offers prequalification

 Bad-credit consumers may qualify

 No loan criteria provided on website

 Doesn’t post loan details on website

 Refi loans start at $7,500

Gravity Lending: Best for using a co-borrower

Starting APR5.99%
Loan amounts$15,000-$150,000
Loan terms48 to 96 months
Minimum credit score660
ProsCons

 Allows for co-borrowers on your loan application

 Offers prequalification

 Doesn’t charge fees

 High minimum loan amounts

 Doesn’t refinance cars older than 10 years old

 High minimum repayment terms

Consumers Credit Union: Best for refinancing small auto loans

Starting APR6.84%
Loan amounts$250-$250,000
Loan termsUp to 84 months
Minimum credit scoreNot disclosed
ProsCons

 Offers small loan amounts

 Non-U.S. citizens eligible for loans

 0.25% autopay discount

 Charges a membership fee

 CCU membership required to receive a loan

PenFed Credit Union: Best for debt protection

Starting APR5.94%
Loan amountsUp to $150,000
Loan terms36 to 84 months
Minimum credit scoreNot specified
ProsCons

 Flexible membership eligibility

 Offers debt protection services

 Allows for prequalification

 Credit union membership required

 Doesn’t offer much insight into its loan requirements

DCU: Best for refinancing large auto loans

Starting APR6.74%
Loan amountsUp to $500,000
Loan termsUp to 84 months
Minimum credit scoreNot specified
ProsCons

 Offers large loan amounts

 Provides multiple rate discounts

 No payments for 60 days

 May charge an administrative fee to refinance DCU auto loan

 DCU membership is required

 Few branch locations

How does refinancing a car loan work?

Refinancing an auto loan is moving an original car loan to (in many cases) a new lender with new terms that are better for your financial situation. The process to refinance a car loan will depend on each lender, but here are the steps you’ll generally follow.

  1. Check your credit. Your credit score and credit report will determine important factors like your annual percentage rate (APR) and whether you’ll even qualify to refinance. So if your score isn’t great, you may want to take some time to improve it before applying for an auto refinance loan.
  2. Get preapproved for a refinance loan. A preapproved car loan can show you what lenders, rates, terms and amounts you may be eligible for. Prequalification may also give you some bargaining power as you shop around.
  3. Compare offers. Don’t feel pressured to accept the first refinancing offer you get. Compare lenders and loan features to ensure you get a loan that best fits your financial situation. You can use an auto refinance loan calculator to determine what you can afford.
  4. Close on your loan. Once you come to an agreement with a lender, you’ll need to close on your loan by signing a contract. During this part of the process, your lender will run a hard credit pull on your credit history. This can cause your score to go down by a few points, though it’ll increase again over time as you make on-time payments.

Is refinancing a car loan a good idea?

Whether it’s a good idea to refinance a car loan will depend on factors like your credit score, market rates and how much you have left on your car loan. If your credit score is good and you still have quite a bit left on your current auto loan, consider applying to refinance.

However, if you don’t have good credit, or if market conditions are poor, it may not be a good idea. If you ultimately decide that refinancing your car loan is right for you, be sure to avoid these common car refinancing mistakes.

When should you refinance your car loan?

Borrowers refinance car loans for a variety of purposes. Before you commit to a lender, make sure to have a goal in mind for you to aim for. Here are a few common reasons consumers refinance their auto loans:

  • Your credit score increased. Improving your credit score can boost your chances of qualifying for better rates when you refinance your car loan. You can do this by making on-time payments for your current auto loan as well as reducing any other debt you have.
  • Market rates are low. If interest rates have dropped since you took out your car loan, you may want to consider refinancing to see if you can land better rates.
  • You’re struggling to make payments. If you’re struggling to keep up with payments on your original loan, consider refinancing for a longer term. This can help to lower your monthly car payments — just keep in mind that you’ll pay more in interest in the long run.
  • You have a high interest rate. If you applied for an auto loan through a car dealership, they may charge you higher rates than if you were to go through a different lender. Refinancing through a different type of lender can help you get lower rates.
  • You want a longer or shorter loan term. If you’re not happy with your current auto loan term, shop around to see if you qualify for longer or shorter repayment terms. Short-term loans come with higher monthly payments but less interest, while long-term car loans offer the opposite features.

Refinance a car loan with bad credit

Yes, you can refinance a car loan with bad credit, though your options will be far more limited than if you have good credit. You can shop around for lenders with low credit score requirements — some lenders even have credit scores requirements as low as 460. However, keep in mind that you’ll likely receive subprime rates.

If you’re struggling to keep up with payments but aren’t able to refinance your car loan, contact your lender and ask about any support or flexibility they can provide.

How we chose the best auto refinance lenders

We reviewed more than 44 lenders that offer auto refinance loans to determine the overall best 11 lenders. To make our list, lenders must offer competitive annual percentage rates (APRs). From there, we prioritize lenders based on the following factors:

  • Accessibility: We chose lenders with auto loans that are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification, preapproval and application processes.
  • Rates and terms: We prioritize lenders with more competitive starting fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

LendingTree reviews and fact-checks our top lender picks on a monthly basis. Not all lenders we reviewed can be found on LendingTree’s loan marketplace.

Frequently asked questions

Refinancing an auto loan can affect your credit score, since you’ll need to submit to a hard credit pull when you apply for a loan. This can cause your score to drop by a few points temporarily. However, as you repay your car loan, your score will gradually increase again.

It may be a good idea to refinance your car if you have good credit, market rates are low or you’re having a hard time keeping up with your current loan. It may be a bad idea, however, if you don’t have good credit or don’t have much left on your loan. Keep in mind that if you refinance, some lenders may try to sell you add-ons such as auto GAP insurance or an extended car warranty.

How soon you can refinance a car loan will depend on how long it takes for the car title to transfer to you. Typically, this takes 60 to 90 days. After that, you should be in the clear to refinance.

You can get out of your current auto loan if you trade in your car, refinance it or sell it. However, selling your car when you still have a loan can be complicated, as you’ll need to pay off your current lender so the title can be transferred to the new buyer.