2023 OpenRoad Lending Review: Auto Refinancing
OpenRoad auto refinancing at a glance
|Refinance auto loans|
|Loan terms||36 to 84 months|
|See Refinance Rates|
OpenRoad Lending has been connecting borrowers with its network of auto refinancing lenders since 2009. In fact, it has great starting rates for those with excellent credit, and they also work with borrowers with poor credit.
- Low rates: Rates start at just 4.29% for the most qualified borrowers.
- Poor credit accepted: Even if you have poor credit, OpenRoad may be able to connect you with a lender. You may be approved with a score as low as 460, but it will also depend on the rest of your financial situation.
- No application fees: There are no application fees with OpenRoad, though the end lender may charge origination fees or title fees, which will be rolled into your total loan amount.
- Allow for cosigners: If adding someone to your application would help your odds of approval, you can add a cosigner to your OpenRoad Lending application.
- Best for those who can’t get credit elsewhere: If your score is high enough that you qualify for OpenRoad’s lowest rate, you’ll want to shop around as you probably have good options elsewhere, too. If you have had trouble securing financing elsewhere, OpenRoad might be able to help, even if it can’t offer you 4.29% APR.
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OpenRoad pros and cons
While OpenRoad has low starting APRs and no application fees, there are some drawbacks to consider about this lending platform.
Low starting APRs
Can qualify for a loan even with poor credit, as low as a 460 FICO Score
No application fees
Mandatory opt-in for marketing calls and texts as a part of the application
Loans not available to self-employed applicants
Application process is not fully online — you may have to fax documents to OpenRoad to complete your application
If you’re self-employed, you probably aren’t eligible for a refinancing loan from OpenRoad. This includes any side hustle income you might have from driving for a company like Uber or Lyft, where you’re not paid as an actual employee.
The application process with OpenRoad isn’t nearly as simple as with many competitors. The company’s website doesn’t make information easily accessible and contains a lot of outdated information. Plus, to complete the application process, you may need to fax documents to OpenRoad, whereas many other lenders offer a fully online process.
Another big problem with OpenRoad’s application is that it requires you to sign up for marketing calls and texts. These solicitations won’t just come from OpenRoad — they can also come from OpenRoad’s lending partners and affiliates. You may be okay with these trade-offs if you have bad credit, since OpenRoad may accept applicants with scores as low as 460, which is much lower than many other lenders.
A closer look at OpenRoad auto refinancing
OpenRoad Lending issues auto refinance loans in amounts of $7,500 to $100,000, depending on your state. Rates start at 4.29% APR and you can apply for loan terms up to 84 months. There is no application fee, but there may be origination fees, and depending on your state, car title fees can range from $0 to $100. These fees will be rolled into your loan when you apply.
To qualify for OpenRoad auto refinancing, your vehicle will need to be 8 years old or newer, with no more than 140,000 miles. If your make and model are no longer being manufactured, you won’t qualify.
OpenRoad Lending won’t refinance trucks or other vehicles that are larger than three-quarters of a ton. Other vehicles that can’t be refinanced through OpenRoad include:
You can refinance up to 120% of the wholesale value of your vehicle. In rare cases, exceptions can be made to get the loan-to-value (LTV) ratio up to 175%. Keep in mind, however, that you may become upside down in your car loan if you finance more than the vehicle is worth.
How to refinance a loan with OpenRoad
You may qualify for refinancing with OpenRoad Lending even if you have bad credit. Granted, you won’t qualify for the lowest rates — or likely even good rates — with a lower credit score, but technically you may be able to qualify with a credit score as low as 460.
You won’t qualify if you’re self-employed. If you’re traditionally employed but work for Uber or Lyft on the side, you won’t be able to submit that supplementary income for consideration. With these provisions in mind, your gross monthly income must be $1,500 or more to qualify for OpenRoad financing.
Once you’re sure you meet these requirements, you can start your application.
Describe your financing goal
First, OpenRoad will ask you for the reason you’re refinancing. You’ll be able to pick from:
- Lower payment
- Lower rate
- Overall savings
Generally speaking, if you focus on a lower payment, you may end up with a longer loan term. This is likely to be more expensive in the long run because the longer you’re paying interest, the more of it you’ll pay over the life of your loan. In fact, one of the most common refinancing mistakes is extending the term of your loan.
The smartest option is to select the shortest term you can afford to keep your total cost of borrowing down — even if that results in a higher monthly payment. Just make sure you run the numbers and can actually afford the monthly refinance payment.
Provide personal and vehicle information
You will need to provide your contact and personal information, like address and Social Security number, along with employment and income information. If you are applying with a cosigner, you’ll need to submit their information, too.
Then, you’ll provide your vehicle’s information, including the year, make, model, current mileage, VIN and current lien holder.
Application and marketing consent
When you submit your application to OpenRoad Lending, make sure to read the fine print. In order to submit the application, you’ll need to consent to receiving marketing calls and texts from OpenRoad and its business partners. These calls are likely to be from the lenders that OpenRoad has matched you with, but it’s unclear if applicants will also receive calls from other third-party companies.
Once you submit your application, you should receive your offers within a few minutes. You’ll then be able to compare these offers and pick the best one for you. You may also want to compare these quotes to some from your local bank or credit union.
OpenRoad may also present you with offers for GAP insurance or extended warranties. Check to be sure you really need these, as they could be an unnecessary upsell, depending on your situation.
How OpenRoad loans compare
Even if you believe that OpenRoad can offer everything you’re looking for in an auto refinance loan, it’s smart to shop around with a few other lenders to compare offers. Be sure to check with your local bank or credit union, or even explore refinancing options with your current lender.
|Terms||36-84 months||24-96 months||24-84 months|
|Minimum credit score||460||No minimum||500|
Is an OpenRoad loan right for you?
OpenRoad Lending may be right for you if you have poor or fair credit and want to get multiple loan offers in one place. It also provides quotes with great market rates for those with the best credit profiles.
If you don’t want to opt-in to marketing calls and texts, you’re better off looking for quotes on refinancing elsewhere.
Frequently asked questions
You may be able to qualify for OpenRoad auto refinancing with a credit score as low as 460. To qualify for the best rates with any lender, however, you’ll need a higher credit score.
Once you get an offer from OpenRoad lending, the approval is good for 30 days. If you wait too long and have to apply again, the hard credit pull may negatively impact your credit score.
Any hard inquiry on your credit – including an auto refinance application – may temporarily lower your score by a few points. However, you’ll have an opportunity to raise your score every month thereafter if you make on-time loan payments.