Compare auto loan refinance lenders in June 2024
When comparing auto loans, pay close attention to the available APR and loan term. The APR (annual percentage rate) is the interest rate at which you will repay your loan. The term is the amount of time that you agree to pay it back. These two aspects are especially important for a refinance loan to ensure you avoid the risk of becoming upside-down on your new loan.
| Lender | APR | Term |
|---|---|---|
| LightStream | 7.49%-15.44%* with AutoPay | 24 to 84 months |
| Autopay | Starting at 4.99% | 12 to 96 months |
| Caribou | 15.00%-28.55% | Not specified |
| Upstart | 9.32%-29.99% | 24 to 84 months |
| RefiJet | 5.29%-21.99% | 24 to 96 months |
| LendingClub | 4.99%-24.99% | 24 to 84 months |
Loan details presented are current as of April 10, 2024. Check the lenders’ websites for more current information. The auto loan lenders listed here are selected based on factors such as APR, loan amounts, fees, credit requirements and more.
A closer look at our top auto loan refinance loan lenders
Not all refinance auto lenders are created equal. Some boast an online-only experience, while others are geared for in-person support. Many lenders also have specific eligibility requirements around vehicle age or loan amount. Consider the ins and outs of our top auto loan refinance lenders.
Best for fast funding
LightStream
Rating: 4.1 stars out of 54.1Bankrate's editorial team scores lenders based on crucial factors like APR ranges, loan amounts, total loan costs including fees and discounts, customer experience and tools such as mobile apps. The options expressed are the opinion of the Bankrate staff. Our partners compensate us, but partner relationships do not influence our reviews or scoring.Info
Apply on partner site
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 7.74%–15.94%
- Loan amount:
- $5,000– $100,000
- Term lengths:
- 2 to 7 years
- Min. annual income:
- Not disclosed
Overview:LightStream offers an easy-to-navigate online interface for unsecured loans. You can apply for repayment terms from 24 to 84 months and a high maximum refinancing amount of $100,000.
Why LightStream is the best for fast funding: If you are in a precarious financial position and need funding right away, LightStream is a great option. With same-day funding available and no additional origination fees, LightStream offers a quick online application process and a higher maximum loan amount than competitors.
Pros
- Fast funding
- Mobile application available
- High loan amount
Cons
- Unsecured loans
- Must refinance at least $5,000
- No prequalification
Who this lender is best for: Someone looking to refinance their vehicle quickly and at a high amount.
Impact on financial wellness: With no prequalification offered, drivers will undergo a hard credit pull upon application submission.
Time to receive funds: As soon as the same day you apply.
Fees: LightStream has no fees.
Additional requirements: LightStream only approves applicants with good to excellent credit scores.
Special features: LightStream offers loan terms ranging from 24 to 84 months. The fast-funding timeline coupled with a range of repayment options will give you the freedom to lower your monthly payment.
Bankrate 2024 Award winner for best auto loan online lender
Autopay
Rating: 4.2 stars out of 54.2Bankrate's editorial team scores lenders based on crucial factors like APR ranges, loan amounts, total loan costs including fees and discounts, customer experience and tools such as mobile apps. The options expressed are the opinion of the Bankrate staff. Our partners compensate us, but partner relationships do not influence our reviews or scoring.Info
- Min. credit score:
- 580
- Fixed APR From:
- 4.99%
- Loan amount:
- $8,000– $150,000
- Term lengths:
- 1 to 8 years
- Min. annual income:
- Not disclosed
Overview: Autopay presents borrowers with a range of loans directly from its network. The process is completely online and streamlined, empowering drivers to walk away with a new loan as soon as one business day.
Why Autopay won for best online lender: The online loan marketplace allows borrowers to seamlessly compare loan options side by side. This can all be done without a hard credit pull, keeping your score intact — a major perk.
Pros
- Large range of acceptance criteria
- Cash-back refinancing offered
- Ability to compare multiple loans
Cons
- Lowest APR only for excellent credit borrowers
- Possible down payment
- Unspecified credit requirements
Who this lender is best for: Best for someone looking to refinance their vehicle in one sitting with the assistance of a knowledgeable loan expert.
Impact on financial wellness: Following a full loan application after being matched with a lender, borrowers will undergo a hard credit pull.
Time to receive funds: Funding with Autopay can be available as soon as one business day.
Fees: Additional fees vary by each lender.
Additional requirements: Autopay’s website does not list vehicle requirements, but you’ll likely have to provide details when you apply.
Special features: Available in all 50 states, Autopay works with a large network of lenders with a high maximum loan amount that allows for borrowers from a range of financial backgrounds to refinance.
Best online experience
Caribou
Rating: 4.3 stars out of 54.3Bankrate's editorial team scores lenders based on crucial factors like APR ranges, loan amounts, total loan costs including fees and discounts, customer experience and tools such as mobile apps. The options expressed are the opinion of the Bankrate staff. Our partners compensate us, but partner relationships do not influence our reviews or scoring.Info
Apply on partner site
- Min. credit score:
- 640
- Fixed APR From:
- 5.99%–28.55%
- Loan amount:
- $10,000– $125,000
- Term lengths:
- 2 to 7 years
- Min. annual income:
- Not disclosed
Overview:Through a number of lender partners, Caribou considers a driver's credit history to match them with a potential lender. The process can be done completely online and simply requires vehicle information.
Why Caribou is the best for shopping online: Caribou’s app and online experience make it very easy to compare different lender rates side by side. Even with its online presence Caribou encourages drivers to speak with its team members who can assist with specific questions seven days a week via phone, email or appointment.
Pros
- Customer service available seven days a week
- Insurance bundling option
- Prequalification offered
Cons
- Not available in all states
- Processing fees
- Undisclosed requirements
Who this lender is best for:Drivers looking to lower their monthly rates and compare potential loans directly online.
Impact on financial wellness:Following your application approval, a hard credit pull will affect your credit score.
Time to receive funds:The funding timeline varies by lender.
Fees: Borrowers can expect a $499 processing fee separate from lender expectations.
Additional requirements: You will need a credit score of at least 640 and at least $2,000 in monthly income. Your car should be under 120,000 miles.
Special features:Caribou encourages drivers to bundle their new loan with other driving needs such as insurance or extended protection.
Bankrate 2024 Award winner for best for auto refinance
LendingClub Auto
- Min. credit score:
- 600
- Fixed APR From:
- 4.99%–24.99%
- Loan amount:
- $4,000-$55,000
- Term lengths:
- 3 to 5 years
- Min. annual income:
- Not disclosed
Overview: LendingClub boasts an easy application process that can help borrowers secure a lower rate.
Why LendingClub won for best auto refinance: The lender not only has competitive rates compared to other lenders but also offers the option to prequalify, which can help you lock in your rates online.
Pros
- Minimal fees
- Option to prequalify
- Instant offer available
Cons
- Potentially high maximum APR
- Not available in all states
- Restrictions for some vehicles
Who this lender is best for: Online applicants.
Impact on financial wellness: Borrowers will undergo a hard credit pull following prequalification.
Time to receive funds: Up to 15 days following application.
Fees: LendingClub may charge late payment fees.
Additional requirements: Vehicles must be under 11 years old and have 120,000 miles or less. The existing loan must be at least one month old and have at least 24 months of payments remaining. Certain vehicles are ineligible.
Special features: LendingClub has an instant offer available, an especially good route for those desperate to refinance quickly.
What car refinancing is and how it works
Refinancing a car loan is essentially just taking out a new car loan — so the steps for applying are mostly the same. You'll need your driver's license, Social Security number and proof of income and insurance, as well as details about your car. If approved, you'll use the funds from your new loan to pay off your old car loan, then begin making monthly payments with your new interest rate and terms.
When should you refinance your car loan?
Refinancing your car loan comes down to saving you money. If you are struggling to afford your vehicle payments or think you could receive more favorable terms, it’s a good idea to consider refinancing your current loan. Here are the main scenarios where refinancing is the right choice.
- Your credit has improved: Competitive rates are reserved for drivers with very good or excellent credit — scores of 740 and above. So, if your credit score has risen since you signed off on your initial loan agreement, refinancing could save you money on your monthly payments.
- You financed through a dealership: Dealer financing likely did not present you with the best available rates and terms. You might be able to get a better deal if you shop elsewhere and refinance your initial vehicle loan.
- You can’t afford your monthly payments: If you are struggling to make your monthly vehicle payments and are at risk of losing your vehicle, it is a good idea to refinance your loan. This way you can extend your terms to lower your monthly costs. Keep in mind that you will have to pay more interest over the life of the loan.
- You have positive equity: If you have positive equity in your vehicle, or the value of your vehicle is worth more than you owe, the cash-out refinance process could present you with some extra money and improved loan terms.
- You have issues with your current lender: If you are struggling with your lender, refinancing may help avoid future problems. But look out if there are prepayment penalties enforced, which could outweigh your savings.
- Interest rates dropped: Even if there hasn’t been a boost in your credit, if interest rates have changed with the prime rate then you may be able to secure improved rates — especially if a lot of time has passed.
How to refinance an auto loan
To successfully refinance your auto loan, follow these steps:
1. Decide if refinancing is the right financing move: There are two main situations whererefi makes sense: you can secure a better rate or you need a lower monthly payment.
2. Review your current loan: Most lenders required a minimum of $3,000 to $5,000 in order to refinance, check your payoff amount along with your terms before starting the process.
3. Check your credit score: Check your credit scoreto see if it has improved since your original loan approval. The higher your credit score, the better your new rate will be.
4. Estimate your car's value: Estimate yourvehicle’s valueand compare it with how much you owe on your loan. If you’re upside-down — meaning you owe more than the car’s worth — you’ll struggle to refinance.
5. Determine your savings: Available interest rates vary by lender so shop around with at least three different providers. Be sure to compare potential rates with your current loan.
6. Get your paperwork in order: Gather the necessary documentation and details of the current loan so you can walk away with better rates and terms.
Pros and cons of refinancing an auto loan
The choice to refinance your auto loan requires some consideration on the state of your finances and vehicle. Weigh the benefits and drawbacks of refinancing before moving forward with it.
Pros
- Potential to decrease monthly cost.
- Ability to sign off on more competitive interest rates.
- Likelihood of paying off auto loan sooner.
- Accessing quick cash.
Cons
- Potentially high interest rates.
- Additional fees incurred.
- Risk of becoming upside-down on loan.
How to choose the best lender
Choosing the best lender comes down to saving you money — either overall or month to month. It’s recommended that you get quotes from at least three lenders before deciding which is right for you. When shopping for an auto loan, compare APRs (annual percentage rates) across multiple lenders. Look for lenders that keep fees to a minimum and offer repayment terms that fit your needs. Pay close attention to the following factors:
What to know before applying for a refinance auto loan
As with any loan, it is best to shop around at different lenders before making your final decision. Each lender has its own methodology when determining your interest rates and terms — so compare to see which best fits your needs.
While every lender measures risk differently, interest rates depend greatly on your credit. Do your homework ahead of time to get a clear picture of what lenders are looking for and the terms you will be offered based on your credit history. This research can help you avoid common refinancing mistakes.
Bankrate tip
When comparing lenders pay close attention to any prepayment penalties that you may incur. Factor that in when calculating if refinancing will save you money.
FAQs about auto loan refinance
How we choose our best auto loan refinance lenders
Bankrate's trusted auto loans industry expertise
Read our full methodology
57years
in business
31
lenders reviewed
16
loan features weighed
496
data points collected
The Bankrate team assessed more than 30 auto refinance lenders to find the best. Bankrate considered 16 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.
