Best Auto Loan Refinance Rates in July 2024

Get personalized rates for an auto refinance loan

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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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Written by Amanda Push and Lauren Nicholson | Edited by Jessica Sain-Baird | Updated July 1, 2024

 
You can refinance a car loan to get a better interest rate, a lower car payment or a different term. Some people use an auto refinance to shorten their loan term and save money on interest, while others stretch out the term to lower their payments. We systematically rated and reviewed dozens of lenders to show you the top auto refinance loans on the market.

Southeast Financial Credit Union: Best for accessing lowest refinancing rates

4.50%

Up to $100,000

12 to 84 months

600

Pros

  • Offers long-term loans
  • No mileage or model-year restrictions
  • In addition to cars, also refinances ATVs, RVs, boats, motorcycles and jet skis

Cons

  • Loans require credit union membership
  • Few brick-and-mortar branches

What to know

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If you want to get a cheaper auto loan by refinancing with lower rates, Southeast Financial Credit Union (SFCU) offers the lowest starting annual percentage rate (APR) of any lender on this list. You’re not limited to traditional car refinancing, either — SFCU refinances special vehicle loans like RV loans and boat loans. And unlike many lenders, SFCU doesn’t limit car mileage or model year.

As is the case with most credit union auto loans, you’ll need to become a member to get a refinance loan. That said, qualifying is easy and costs a total of $10 or less.

How to qualify

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To qualify for a refinance loan with Southeast Financial Credit Union, you’ll need a credit score of at least 600.

You’ll also need to become an SFCU member, which requires creating a savings account with a $5 deposit and qualifying with one of the below:

  • Donate $5 to Autism Tennessee
  • Be a current or retired Southeast Financial Select Employee Group employee
  • Be a relative of a Southeast Financial Credit Union member
  • Live, work, worship, go to school or volunteer in a qualifying Tennessee or Kentucky community, Tishomingo County, Miss., or Corinth, Miss.

Autopay: Best for comparing refinance rates

4.67%

$2,500-$100,000

24 to 96 months

550

Pros

  • Prequalify without hurting your credit
  • Allows co-applicants
  • Provides clear eligibility requirements

Cons

  • Lenders may charge origination fees (vary by state)
  • Maximum APR is not disclosed

What to know

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Autopay is a lender marketplace that offers loans for auto refinancing, new auto purchases, cash-out refinances and lease buyouts. Along with lenders RateGenius and Tresl, Autopay is owned by The Savings Group.

Autopay’s customer service is available six days a week.

Read our full Autopay marketplace review.

How to qualify

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Along with a minimum credit score of 550, Autopay requires the following:

  • Driver’s license
  • Insurance
  • Proof of income (paystubs, tax returns)
  • Proof of residence (i.e. utility bill, lease agreement)
  • Payoff letter

Individual lenders may have their own additional requirements.

Gravity Lending: Best for refinancing with a co-borrower

4.99%

$15,000-$150,000

48 to 96 months

660

Pros

  • Allows for co-borrowers on your loan application
  • Offers prequalification
  • Doesn’t charge fees

Cons

  • Loans start at $15,000
  • Doesn’t refinance cars over 10 years old
  • Shortest loan term is 48 months

What to know

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If you don’t have great credit, it can be difficult to qualify for a loan unless you have a co-borrower or cosigner. Gravity Lending allows borrowers to apply for auto refinancing with a second person to improve their chances of approval and potentially get lower rates.

But if you need to refinance a small auto loan over a short term, look elsewhere. Gravity Lending only refinances loans that are at least $15,000, and loan terms start at 48 months.

How to qualify

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To qualify for an auto refinance with Gravity Lending, you’ll need a car that is less than 10 years old and a credit score of at least 660.

During the application process, you’ll need to provide the following:

  • Valid driver’s license
  • Proof of income
  • Proof of residence
  • Proof of insurance
  • Vehicle information

RefiJet: Best for cash-back refinancing

5.29%

$5,000-$150,000

24 to 96 months

500

Pros

  • Offers cash-back refinancing
  • Those with bad credit may qualify
  • Allows co-borrowers

Cons

  • Doesn’t refinance cars over 10 years old
  • Loans start at $5,000

What to know

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If you take out a RefiJet auto refinance loan, you have the option to cash in on the equity you’ve built up while paying off your vehicle — this is known as cash-out auto refinancing. Those with bad credit may qualify for a loan through RefiJet, especially since you can add a co-borrower to your application.

If you have an older car or need to refinance a small loan, consider other lenders. Your car needs to be 10 years old or newer, and you need to refinance a minimum of $5,000 to get a loan with RefiJet.

Read our full RefiJet auto loan review.

How to qualify

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To qualify for a RefiJet auto refinance loan, you’ll need to meet these requirements:

  • Minimum credit score: 500
  • Minimum income: $1,900 single or $2,200 joint
  • On-time car payments
  • Vehicle must be less than 10 years old
  • Employed or have a verifiable source of income
  • Valid driver’s license, registration and full coverage insurance

PenFed Credit Union: Best for debt protection

5.44%

Up to $150,000

36 to 84 months

Not specified

Pros

  • Easy to become a member
  • Offers debt protection services
  • Allows for prequalification

Cons

  • Credit union membership required
  • Doesn’t offer much insight into its loan requirements

What to know

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In the case of death, disability or loss of employment, PenFed Credit Union offers the option of debt protection for a small monthly fee. In these instances, PenFed can cancel your loan balance or monthly payments with no penalties.

Unfortunately, PenFed doesn’t offer much insight as to what it requires if you want to refinance your auto loan. You’ll also need to become a PenFed member before you can receive your loan funds.

Read our full PenFed Credit Union auto loan review.

How to qualify

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PenFed requires that any vehicle you refinance has less than 125,000 miles on it. Aside from that, PenFed doesn’t offer much more information on how to get an auto refinance loan.

To become a PenFed member, you will need to open a savings account with the credit union and make a $5 deposit.

iLending: Best for repayment flexibility

5.49%

$5,000-$150,000

12 to 96 months

560

Pros

  • Can skip up to 90 days of payments
  • Offers prequalification
  • Bad-credit consumers may qualify
  • In addition to cars, also refinances boats, RVs, motorcycles and ATVs

Cons

  • Loans start at $5,000
  • May charge administrative fees
  • Unclear car eligibility requirements

What to know

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With an iLending auto refinance loan, you have the option to skip up to 90 days of payments if your budget won’t allow you to make your car payment that month. Applying for a loan won’t impact your credit score — and even if you have fair or bad credit, you may still be able to get a refi loan through iLending.

While iLending refinances special vehicles like RVs and boats in addition to cars, it doesn’t specify maximum age or mileage restrictions.

How to qualify

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To refinance your vehicle with iLending, you’ll need:

  • Minimum credit score: 560
  • Minimum credit history: six months and one credit account (credit card, mortgage, loan)
  • Minimum income: $1,500 per month (varies)

myAutoLoan: Best for fast funding

5.74%

Starting at $5,000

24 to 72 months

600

Pros

  • Funding within 24 hours
  • May receive up to four loan offers
  • Allows co-applicants

Cons

  • Not available in Alaska or Hawaii
  • Maximum car mileage of 125,000
  • No direct phone number or email address provided on website

What to know

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myAutoLoan isn’t a direct lender, but it can provide consumers with at least four offers from lending partners. If you’re approved for a refinance auto loan, you may receive your funds within 24 hours. And if you don’t have good credit, myAutoLoan does allow you to use a co-applicant to boost your odds of approval.

However, if your car has more than 125,000 miles on it, you won’t qualify for a car refinance loan through myAutoLoan. Consumers’ ability to contact myAutoLoan is also limited to an online request form, with no direct phone number or email provided on the website.

Read our full myAutoLoan review.

How to qualify

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You’ll need to meet these criteria to qualify for an auto refinance loan on myAutoLoan’s network:

  • Minimum $18,000 annual gross income
  • 600 minimum credit score
  • Must live in continental U.S.
  • Car cannot have more than 125,000 miles
  • Vehicle must be 10 years old or newer
  • Must have at least $5,000 left on current loan

Auto Approve: Best for special vehicle refinancing

6.24%

$10,000-$150,000

12 to 84 months

620

Pros

  • Allows co-borrowers
  • Special vehicle refinancing
  • Check rates without affecting credit

Cons

  • Unclear auto eligibility criteria
  • Loans start at $10,000
  • Charges administrative fees

What to know

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Auto Approve isn’t a direct lender — instead, it connects consumers with lenders in its network. If you have a powersports vehicle, you may be in luck: Unlike many auto refinance lenders, the lenders that work with Auto Approve will refinance motorcycles, RVs, boats and ATVs.

Unfortunately, Auto Approve doesn’t provide much information on mileage or model-year restrictions, and it may charge upfront administrative fees (often called origination fees) to close on your loan.

Read our full Auto Approve auto loan review.

How to qualify

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To qualify for a car refinance loan with Auto Approve, you’ll need a credit score of at least 620. During the application process, you will have to provide the following:

  • Driver’s license
  • Proof of insurance
  • Vehicle registration
  • Proof of income
  • Contract for current auto loan

OpenRoad: Best for refinancing with bad credit

6.49%

$7,500-$100,000

36 to 72 months

460

Pros

  • Those with bad credit scores may qualify
  • Allows co-borrowers
  • Provides clear eligibility criteria for applicants

Cons

  • Only offers loans up to $100,000
  • Can find shorter repayment terms elsewhere
  • Self-employed consumers won’t qualify

What to know

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With a minimum credit score requirement of just 460, OpenRoad Lending provides flexibility for borrowers with less-than-perfect credit. (However, OpenRoad Lending connects consumers to companies on its lending platform, so you’ll still need to meet other criteria to qualify.)

This company also allows consumers to apply with a co-borrower. This can improve your chances of qualifying and help you land lower rates, especially if you have a bad credit score.

Read our full OpenRoad Lending auto loan review.

How to qualify

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To qualify for a loan through OpenRoad Lending, you’ll need to meet the following criteria:

  • 460 minimum credit score
  • Gross monthly income of at least $1,500
  • Remaining loan must be between $7,500 and $100,000
  • Vehicle must be eight years old or newer
  • Car can’t have more than 140,000 miles on it

Consumers Credit Union: Best for refinancing small auto loans

6.79%

$250-$500,000

Up to 84 months

580

Pros

  • Refinances small loans
  • Non-U.S. citizens eligible for loans
  • 0.25% interest rate autopay discount

Cons

  • Charges a membership fee
  • CCU membership required to receive a loan

What to know

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Consumers Credit Union (CCU) offers a flexible range of loan amounts — from $250 to $500,000 — so even those with small auto loans can refinance if they need to. CCU also allows for non-U.S. citizens to apply for loans, has a low minimum credit score and offers a 0.25% interest rate discount for setting up automatic payments.

Still, like other credit unions, you’ll need to become a member of CCU in order to receive your loan funds. You’ll also have to pay a nominal one-time fee of $5.

Read our full Consumers Credit Union auto loan review.

How to qualify

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To refinance your car loan with Consumers Credit Union, you’ll need a credit score of at least 580.

To become a CCU member, you’ll have to provide a one-time $5 membership fee. You’ll also need to open a Member Share/Savings account and make a $5 deposit.

Auto refinance rates

Auto refinance rates from the lenders on this page start as low as 4.50% depending on the lender and your credit. But it’s hard to tell what rates you’ll get without prequalifying or applying with a lender.

We’ve compiled the average refinancing rates for LendingTree marketplace users so you can estimate the rates you’ll likely qualify for based on your credit score.

Credit tierAverage APR
Excellent credit (720+)7.80%
Good credit (680 - 719)8.77%
Fair credit (640 - 679)9.71%
Poor credit (300 - 639)11.11%

Source: LendingTree user data from Q1 of 2024.

Your credit score determines your APR and whether you’ll even qualify to refinance. Check your score for free with LendingTree Spring to see what kinds of refinancing loans and rates you’re likely to get.

How to refinance a car loan

Refinancing an auto loan is moving your original loan to a new loan with terms that are better for your financial situation. Here’s how it works.

  1. Get preapproved for a refinance loan. A preapproved car loan shows you what lenders, rates, terms and amounts you may be eligible for. Prequalification may also give you some bargaining power as you shop around.
  2. Compare offers. Don’t feel pressured to accept the first refinancing offer you get. Compare quotes with an auto refinance loan calculator to make sure you’re choosing the right loan.
  3. Apply and close on your loan. As part of the formal application 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 will increase over time as you make on-time payments. You’ll close on your loan by signing a contract.

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Refinance car with bad credit

You can refinance a car loan with bad credit, though your options will be limited to lenders with low eligibility requirements.

Keep in mind that you’ll likely qualify for high interest rates, which may defeat the purpose of refinancing to get lower rates and payments. If you’re willing to stretch out your loan term — and pay more in interest over the course of your loan — in order to get lower monthly payments, refinancing with bad credit may be worth it to you.

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

Should I refinance my car?

Borrowers refinance auto loans after buying a car for a variety of reasons. Here’s when to consider refinancing your car loan:

  • Your credit score has increased. Improving your credit score can boost your chances of qualifying for the lowest rates when you refinance your car loan. You can raise your score by making on-time payments on your existing loan and by reducing other debts.
  • Market rates are low. If interest rates have dropped since you took out your car loan, you may be able to land better rates with a refinance.
  • You’re struggling to make payments. If you can’t keep up with your current loan, consider refinancing for a longer term. This can help lower your monthly car payments. 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, it may charge you higher rates than if you were to go through a different lender. You may find lower rates by refinancing.
  • You want a longer or shorter loan term. If you’re not happy with your current auto loan term, shop around for a loan with longer or shorter repayment terms. Short-term loans come with higher monthly payments, but you’ll pay less in interest. Long-term car loans have lower monthly payments, but you’ll pay more in interest.

Try our auto loan refinance calculator

The best way to decide whether refinancing your loan is worth it is by plugging your current loan and any loan offers into a loan calculator.

How we chose the best auto refinance lenders

We reviewed more than 44 lenders and financial institutions that offer auto refinance loans to determine the overall best 11 lenders. To make our list, lenders must offer competitive 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

Each lender has different criteria for an auto refinance loan. In general, you’ll need to meet the lender’s minimum credit score and income requirements, and your car may need to fit its mileage and model-year restrictions. That said, you can refinance your car with bad credit — you’ll just likely pay high interest rates.

Refinancing a car loan means replacing your old loan with a new loan that has terms that benefit you in some way. The new loan can either be with a different lender or the same lender. People typically refinance to get lower rates and/or monthly payments, or to shorten their loan term (and pay less in interest).

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.

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.