PenFed is our top choice if you want to refinance your auto loan. With rates starting at 5.44% for new cars, you can borrow as much as $150,000 for as many as 84 months. Refinancing replaces your existing loan with another one and can help you get a better rate, especially if you have a high-interest auto loan. You may prequalify for refinancing or you may need to apply directly with a lender. Before you do, it's a good idea to determine the value of your vehicle so you know how much you need. After researching 21 leading auto loan lenders, we identified the six 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 new car loans for those with deep subprime credit—meaning a credit score between 300 and 500—was 14.08%. Best Auto Refinance Loans for June 2024 Best Auto Refinance Loans for June 2024 The Bottom Line Compare Providers How to Choose Pros and Cons How to Refinance Alternatives Why You Should Trust Us FAQs 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 and you can refinance from as little as $500 to as much as $150,000.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. Another perk is that PenFed offers refinancing for up to 125% of the vehicle’s value. You can use this to borrow against your car and get cash for upcoming expenses or to consolidate high-interest debt. While some credit unions are limited to select groups, the 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. If you’re an existing customer, you may be eligible for discounts or other benefits. Customers can refinance their auto loans and qualify for competitive rates with PNC Bank. 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 780 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 connects you with offers from its partner lenders. If you have good credit, you may be offered some very low rates. 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 because 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. Members can qualify for a 0.25% rate reduction. Consumers Credit Union will refinance more than just your typical car or truck as it also offers refinancing for motorcycles and recreational vehicles. Some credit unions have strict membership requirements, but this one doesn’t require membership for auto loans. 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 LightStream could be a good choice for borrowers who want a quick and easy refinancing option. It's also a good choice for those who own older or high-mileage vehicles. These loans are similar to personal loans, which means they’re unsecured. As such, they 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, it 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. Anyone can join this credit union and its rates and terms make it worth the effort. If you want 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. When you refinance your auto loan, you replace your original loan with a new one. This may be with the same lender or another one. Most people refinance their auto loans to get better terms, including a better repayment period and/or a better interest rate. The purpose of an auto refinance loan is to lower the amount of money you pay each month. Like other loans and credit products, you are subject to a credit check. Lenders are often able to decide whether to approve the loan fairly quickly, especially since the vehicle is used as collateral. The new lender pays off the original loan once the loan is approved and the vehicle's title is transferred to them. Payments are then made to the new loan issuer until you either pay off the loan or refinance it again. 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: 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 $47,000, it’s no surprise that roughly 80% of new cars were financed with auto loans. 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. Source: Experian: What Auto Loan Rate Can You Qualify for Based on Your Credit Score? Pros Lower monthly payment Lower interest rates Repay sooner Cons Additional fees More money in interest Owe more than vehicle's worth See if you pre-qualify with certain lenders before you apply to refinance your auto loan. With a pre-qualification, you provide a prospective lender with basic information for credit without impacting your credit score. The lender(s) may give you an offer based on a soft credit check. You can complete an application for approval if you accept the offer, at which time the lender will pull a credit check. Once approved, your loan is funded and you can begin repaying the new lender. 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. As we mentioned above, refinancing an auto loan may not be the right choice for everyone. If you find yourself in one of the scenarios we highlighted earlier or you don't want to go through the refinancing process, you may want to consider some of the alternatives. 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. We used this data to review each company for fees, repayment terms, income requirements, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999 and has helped millions of readers around the world become educated on personal finance. 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. 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. 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. That depends on your personal situation. But it's usually a good idea to wait for at least a year before you try to improve your repayment options with an auto refinance. Consider your financial situation and how much you have left on the loan before you refinance your car loan. 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. One of the biggest disadvantages of refinancing a car loan is that you may end up paying more in interest over the life of the loan even if you secure a lower interest rate. This is especially true if you end up with a longer term for your car loan, such as going from a 36-month term to a 72-month term. You may also end up paying more if you get a variable rates and interest rates go up. Most lenders have a minimum loan amount that they're willing to refinance. These amounts tend to vary, so it's always a good idea to do your research as you look for potential lenders. Keep in mind that most lenders usually refinance larger amounts because they can make more money from these loans. We researched and reviewed 21 lenders to find the best seven co-signer and co-borrower loan opportunities you see above on this list. While we write individual reviews for most companies, we do not always write reviews for companies we would not recommend. Below are the companies we researched along with links to individual company reviews to help you learn more before making a decision: Alliant Credit Union, AUTOPAY, Bank of America, Capital One, CarMax, Carvana, Chase Auto, Consumers Credit Union, Credible, First Tech FCU, LendingClub, LendingTree, LightStream, NASA FCU, Navy Federal, OpenRoad Lending, PenFed, PNC Bank, U.S. Bank, USAA, Vroom. 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 our editorial policy. Experian. "What Auto Loan Rate Can You Qualify for Based on Your Credit Score?" Penfed Credit Union. "Refinance." PNC. "Auto Loan Refinance." PNC Bank. "Auto & Car Loan Refinance." PNC Bank. "2023 Annual Reoport," Page 121. PNC Bank. "Refinance an Auto Loan." Autopay. "Auto Loan FAQ." Autopay. "Auto Loan Refinance." Consumers Credit Union. "Rates." LightStream. "Auto refinancing." Open Road Lending. "Auto Refinance and Car Loan Rates." OpenRoad Lending. "About Us." OpenRoad Lending. "Auto Refinance Questions." OpenRoad Lending. "Refinance Your Vehicle." Federal Trade Commission. "Auto Loan Refinancing Scams." 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?" Kelley Blue Book. "Average New Car Price Tumbling." Experian. "State of the Automotive Finance Market Q4 2023," Page 6. Consumer Financial Protection Bureau. "Worried About Making Your Auto Loan Payments?" myFICO. "How Are FICO Scores Calculated?" 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." 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. "What Auto Loan Rate Can You Qualify for Based on Your Credit Score?" Penfed Credit Union. "Refinance." PNC. "Auto Loan Refinance." PNC Bank. "Auto & Car Loan Refinance." PNC Bank. "2023 Annual Reoport," Page 121. PNC Bank. "Refinance an Auto Loan." Autopay. "Auto Loan FAQ." Autopay. "Auto Loan Refinance." Consumers Credit Union. "Rates." LightStream. "Auto refinancing." Open Road Lending. "Auto Refinance and Car Loan Rates." OpenRoad Lending. "About Us." OpenRoad Lending. "Auto Refinance Questions." OpenRoad Lending. "Refinance Your Vehicle." Federal Trade Commission. "Auto Loan Refinancing Scams." 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?" Kelley Blue Book. "Average New Car Price Tumbling." Experian. "State of the Automotive Finance Market Q4 2023," Page 6. Consumer Financial Protection Bureau. "Worried About Making Your Auto Loan Payments?" myFICO. "How Are FICO Scores Calculated?" 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." Related Terms Private Party Auto Loan: What It Is, How It Works, How to Get One A private party auto loan is a type of loan that you can use to finance the purchase of a car from an individual. Many financial institutions offer these loans, including banks, credit unions, and online lenders. more What Is a Business Auto Loan? How to Finance Company Vehicles A business auto loan is a type of secured loan that companies or individual owners can use to purchase vehicles for business purposes. It can be less expensive than an unsecured loan, and its interest costs may be tax-deductible. more Interest Rate Reduction Refinance Loan (IRRRL): Overview An interest rate reduction refinance loan (IRRRL), offered by the U.S. Department of Veterans Affairs (VA), helps veterans and their families get lower rates and refinance their loans. more Rate-and-Term Refinance: Definition, Examples, Vs. Cash-Out Rate-and-term refinance refers to the refinancing of an existing mortgage for the purpose of changing the interest rate or loan term without taking additional cash out. more No Cash-Out Refinance: Meaning, Overview, Special Considerations A no cash-out refinance is when a loan's terms are refinanced but no cash is allocated for the borrower as spending or expense money. Learn how a no cash-out refinance works. more Private Student Loans: What They Are, How They Work Private student loans are offered through third-party lenders, and they don't come with the protections afforded to federal student loan borrowers. moreBest Auto Refinance Loans for June 2024
Best Overall : PenFed
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Best Big Bank : PNC Bank
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Best Refinance Loan Marketplace : AUTOPAY
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Best Credit Union : Consumers Credit Union
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Best Online Lender : LightStream
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Best for Low Minimum APR : OpenRoad Lending
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The Bottom Line
Compare the Best Auto Refinance Loans
Company Interest Rate Maximum Loan Amount Loan Terms Best Overall: PenFed Credit Union 5.44%-6.79% (new); 6.79%-7.74% (used) $150,000 36–84 months Best Big Bank: PNC Bank 6.99%–13.64% $100,000 12–84 months Best Refinance Loan Marketplace: AUTOPAY As low as 4.67% $100,000 24–96 months Best Credit Union: Consumers Credit Union Starting at 6.54% $350,000 60–84 months Best Online Lender: LightStream 7.49%–15.44%* with autopay $100,000 2–7 years Best for Low Minimum APR: OpenRoad Lending 1.99%–24.99% $100,000 24–72 months Guide to Choosing the Best Auto Refinance Loan
What Is an Auto Refinance Loan?
When to Refinance Your Auto Loan
Factors to Consider for Auto Refinance Loans
Auto Loan Rates by Credit Score
Credit Score Average APR (New Car) Average APR (Used Car) Super Prime: 720+ 5.18% 6.79% Prime: 660-719 6.40% 8.75% Non-prime: 620-659 8.86% 13.28% Subprime: 580-619 11.53% 18.55% Deep Subprime: 579 and below 14.08% 21.32% Pros and Cons of Auto Loan Refinancing
Pros Explained
Cons Explained
How to Refinance Your Auto Loan
Alternatives to Auto Loan Refinancing
Why You Should Trust Us
Frequently Asked Questions
When Can You Refinance Your Car Loan?
Does Refinancing Your Car Loan Hurt Your Credit Score?
How Many Times Can You Refinance Your Auto Loan?
How Long Should I Wait to Refinance My Auto Loan?
Can You Refinance If You Owe More Than What the Car Is Worth?
What Are the Downsides to Refinancing Your Auto Loan?
Is There a Minimum Amount that I Can Refinance for an Auto Loan?
Companies We Reviewed
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Best Auto Loan Rates and Financing for June 2024 Best Auto Loans for Fair Credit of 2024 Best Used Car Loans for 2024 Private Party Auto Loan: What It Is, How It Works, How to Get One Best Motorcycle Loans of 2024 How Soon Can You Refinance a Car Loan?
