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Auto refinance loan rates and terms

LenderStarting APRTermsLoan AmountsMin. Credit Score
iLendingDIRECT 2.14%36 - 96 monthsFrom $7,500510
Caribou2.32%48 - 84 months$581 - $7,500581
RefiJet2.49%24 - 120 monthsVaries500
Gravity Lending2.74%24 - 96 months$10,000 - $150,000None
Auto Approve2.94%12 - 120 months$8,000 - $150,000None
LightStream5.49%* with AutoPay
and Excellent Credit
24 - 84 months**$5,000 - $100,000Unspecified

How does an auto loan refinance work?

Refinancing replaces your current vehicle loan with a new auto loan, one with a different payment, interest rate or term.

  • Check your credit score

    A lower-than-expected score might mean there are mistakes on your credit report. Double-check that everything is right and take care of any discrepancies before you apply for auto refinancing. You can view your credit score for free on LendingTree.

  • Apply online

    Fill out one form on LendingTree and get up to five auto refinance offers from lenders based on your credit. Have your current auto loan information on hand, including your monthly payment amount, APR, loan term and payoff.

  • Compare offers

    When lenders compete for your business, you win. Compare the different rates, payments and terms you qualify for and see which one’s best for your budget. Don’t forget to use a car loan refinance calculator to help run the numbers.

  • Save money

    Success! Enjoy your lower payment, lower APR or ability to pay the loan off faster. It feels great to meet your goals.

Is refinancing right for you?

See how much you may save with a refinance car loan. Use our car refinance calculator to compare your best auto refinance offer with your current auto loan to see how much you could save.

When should you refinance your car loan?

  • Your credit score has improved
  • Interest rates have gone down
  • You got a promotion at work and want to pay your loan off faster
  • You want more wiggle room in your budget and want to reduce your monthly payment
  • It’s been two years since you purchased your car
  • You didn’t shop around for your loan when you first purchased your car

Frequently asked questions

Refinancing your auto loan is worth doing if it can save you money. Every car payment you make at a higher interest rate than you deserve is a waste of money. Even if you stay at the same rate but refinance to a longer term, a lower monthly car payment could help alleviate budget pressure. But be aware that if you do lengthen your loan, you may end up paying a lot more in interest in the long run. Read about the common refinance mistakes that people make so you can avoid them.

Not at all, if it benefits you. The refinance company may try to sell you add-on products like guaranteed auto protection (GAP) insurance or an extended warranty, which can tack on thousands to your car loan. Don’t buy them if you don’t want them.

Applying for any type of auto loan means a credit inquiry. When a lender performs a hard credit pull, your credit score will most likely take a temporary dip. But it’s unlikely to be a severe drop and the impact should be short-lived.

Yes, it is possible to be approved for a refinance loan with bad credit but again, you want to make sure refinancing with a bad-credit refinance company is to your benefit. Like you would with any loan, make sure you apply to a few lenders, not just one, so that you know what you qualify for and get the best deal for you. It may even be possible to refinance after bankruptcy.

You might get a lower APR if:

  • Your credit score improved since you first got your auto loan. Making your auto loan payments on time and in full for six months to a year may further prove your creditworthiness.
  • Interest rates have dropped since you took out your original loan or you received a bad rate with your original loan.
  • Your car is worth more than your loan.

If you haven’t been able to make on-time payments, refinancing may still be a way to lower your monthly bill. An alternative is to ask your current lender to modify your monthly payment.

A cash-out auto refinance is similar to a traditional auto refinance loan with one major twist: The new loan exceeds the total needed to pay off your existing car loan and you pocket the difference. This only works if your car is worth more than the remaining balance, or payoff amount we discussed earlier. It also means you’re taking on more debt and taking a chance that you could wind up underwater on your car loan.

It should cost you less than $100 and possibly nothing. Most auto loans do not have a prepayment penalty or an origination fee. The only thing that may cost is the fee to change the lienholder on the title, depending on your state’s rules, and some of your time. Given that refinancing could potentially save you a lot of money, it’s probably worth it.

Trading in your car and buying another (less expensive) one is an alternative to refinancing, but it’s not your only choice. You could sell your car or simply pay it off faster.

* Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rates range from 4.99%-19.99% APR w/AutoPay. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.

** Payment example: Monthly payments for a $10,000 loan at 5.49% APR with a term of 3 years would result in 36 monthly payments of $301.91.