The best auto refinance companies give you the chance to trade your current car loan for a new one. This move can make sense if you can qualify for a new auto loan with a lower interest rate, or if you want a lower monthly payment that fits in better with your current budget and income.
Note that you’ll need to have a strong history of on-time car payments to qualify for a refinance car loan and that your new rate will depend on your credit score, your income, and other factors.
If you are eager to save money on your auto loan, pay your loan off faster, or secure a car payment you can actually afford, read on to learn how to refinance your car loan for the best results.
Our Picks: 6 Best Auto Refinance Companies of March 2024
- LendingTree: Best Loan Comparison Site
- RateGenius: Best for Easy Online Quotes
- LightStream: Best for Great Credit
- PenFed Credit Union: Best for Competitive Rates
- RefiJet: Best for Large Loan Amounts
- LendingClub: Best for Fair Credit
Best Auto Refinance – Company Reviews
Table of Contents
Auto loan refinancing can make sense in a variety of scenarios, yet you’ll definitely have a better experience if you go with one of the top companies. The reviews shared below include all the major details on the best auto refinance companies and the loans they offer.
LendingTree is a popular loan comparison site with a catchy tagline: “When banks compete, you win.” This site makes it easy to check loan rates for a mortgage, personal loans, car loans, and more. That said, their auto refinancing portal is extremely helpful since it lets customers check their rates with multiple auto refinance companies in one place.
LendingTree auto loans come with incredibly competitive rates and terms, and you can choose to repay your loan over 24 to 84 months.
However, the exact rates and terms you’ll be offered will depend on the auto refinance lender you choose to go with. Also, note that individual auto refinance companies have set criteria for loan approvals that can vary.
RateGenius is another popular loan comparison site, and this company focuses on auto refinance loans instead of other financial products. We love that this institution has an average star rating of 4.4 out of 5 stars across more than 4,000 user reviews on Trustpilot, and that applicants only have to enter their information once. From there, they get to compare multiple loan options from several different companies, which can help them find the best deal.
Interest rates for RateGenius auto loans are competitive, and borrowers can choose to repay their loans over 36 to 72 months. RateGenius will also match your new loan to your current repayment plan if you prefer. This means that, if you currently have 42 months of car payments left, you can choose an auto refinance loan with a new monthly payment spread over the same 42-month timeline.
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LightStream is a direct lender that makes it easy to apply for an auto refinance loan. This company lets you borrow anywhere from $5,000 to $100,000, which makes it a good option if you want to refinance a car in nearly any price range. You can repay your auto loan over 24 to 84 months, and interest rates are highly competitive for those with a good credit score or better.
LightStream does not require an appraisal of your vehicle, nor do they have any age or mileage restrictions for their auto refinance loans. That makes this company a good option if you don’t want to jump through a ton of hoops to refinance your auto loan. You can even check your rate without any impact on your credit score, which is a major bonus.
PenFed Credit Union requires you to become a member to apply for their auto refinance loans, yet they don’t have any strict requirements that prohibit normal, everyday people from attaining membership. This credit union offers some of the best auto refinance rates of any financial institution, and they even let you borrow up to $150,000 to refinance especially expensive cars.
Auto loans for newer cars that are refinanced can be repaid over 36 to 84 months, yet a shorter repayment period (up to 72 months) is offered for cars that are model year 2020 or older or have more than 7,501 miles. Also note that existing PenFed auto loans are not eligible for refinancing with the same lender, which is fairly common.
ReFiJet is another loan comparison site that makes it possible for consumers to compare multiple auto refinance loan offers in a single sitting. This comparison site makes it possible to refinance auto loans in amounts up to $150,000, and borrowers can choose to refinance loans that last from 36 to 72 months.
Interestingly, RefiJet lets new customers skip their monthly payments for the first two months after refinancing their car loan. This perk will set you back slightly on your repayment schedule, but it can help you get caught up with other bills or set aside some extra cash for savings.
Unfortunately, RefiJet makes you fill out a contact form or call them to apply for a new loan, which means you can’t get started with an online application. They also limit their refinance loans to vehicles that are 10 years old or newer, and to cars that have less than 150,000 miles.
Finally, it’s worth noting that different types of car insurance may not be accepted by this lender. Specifically, RefiJet says you need to pay for “full coverage” auto insurance in order to be eligible for refinancing.
Lending Club is another auto refinance lender that lets borrowers check their rates without any impact on their credit scores. Loan amounts range up to $50,000, and applicants can choose to repay their new auto loans over 24 to 84 months.
The best part? LendingClub says applicants who apply online will get an answer almost immediately. The lender also says that past customers have saved an average of $89 per month by trading their original car loan for a new one.
That said, LendingClub has quite a few requirements for auto refinancing you should know about. For example, the car you want to refinance must be 10 years old or newer, and it must have less than 120,000 miles. The current car loan must also have at least 24 monthly payments left to qualify.
Auto Refinance Guide
There are several ways to save on transportation, with options that range from shopping around for the best car insurance to seeing if you can get a better deal on your auto loan. If you plan to trade the car loan you have for a new one, or if you’re wondering whether refinancing your car even makes sense, read on to learn more.
How Does Auto Refinance Work?
Auto refinancing is a process that involves trading the current auto loan you have for a new one. Generally speaking, applicants apply for auto refinancing and get approved, at which point the funds they receive are used to pay off the original loan. From that point forward, the auto refinance customer makes monthly payments on their new car loan until it’s paid off.
You may be wondering why you would refinance your car loan in the first place. Generally speaking, auto refinancing makes sense when you can get a better deal than you currently have, whether that means securing a lower monthly payment, a lower interest rate, or both. Some people also refinance their car loans in order to pay them off faster.
Is It Allowed to Refinance Your Auto Loan?
Refinancing your car loan is definitely allowed, although lenders in this space may have their own requirements that limit the age or type of cars that can be refinanced. Some lenders also have minimum and maximum auto refinance loan amounts, which can make it difficult to refinance an especially cheap (or especially expensive) car.
That said, many people also refinance their car loans with personal loans, mainly because they are not secured by collateral.
What Types of Refinancing Options Are Available?
Auto refinance loans come with different repayment timelines that depend on the lender. However, most companies in this space let borrowers refinance their auto loans over 24 to 84 months.
Auto refinance loans also come with fixed interest rates, fixed monthly payments, and set repayment schedules that never change. Auto refinance loans are also secured loans by nature, so they tend to offer more affordable rates and better terms than many other financial products.
Why It Makes Sense to Refinance Your Auto Loan
Refinancing your car loan may or may not make sense. It all depends on the parameters of the auto loan you already have and how they stack up to new car loans you can qualify for.
With that in mind, here are some scenarios where refinancing could make sense:
- Your credit score has improved, so you have the potential to secure a better loan with a much lower rate.
- Auto loan rates have gone down since you purchased your car, and you want to take advantage.
- You took a cut in pay and you need a new car loan with a lower monthly payment.
- You want to pay your car loan off faster, so you plan to shorten your repayment timeline.
- The original loan for your car doesn’t have the best rates and terms, and you want to upgrade.
At the end of the day, you should consider refinancing your car loan if you get a better deal somehow, either by accessing lower auto loan rates, improving your monthly payment, or getting on a path to pay your car loan off faster.
How We Found the Best Auto Refinance Companies
To find the best auto refinance companies for this ranking, we focused on car refinance firms that have an A- rating or better with the Better Business Bureau (BBB).
We also looked for companies that let applicants check their rates without any impact on their credit, as well as those that offer competitive rates and terms to consumers with a variety of credit profiles.
Separately, we read over user reviews to find auto refinance companies with mostly positive user experiences.
Summary of the Best Auto Refinance Companies
- LendingTree: Best Loan Comparison Site
- RateGenius: Best for Easy Online Quotes
- LightStream: Best for Great Credit
- PenFed Credit Union: Best for Competitive Rates
- RefiJet: Best for Large Loan Amounts
- LendingClub: Best for Fair Credit
Conclusion – Best Auto Refinance Companies
Auto refinancing provides an avenue for drivers to optimize their financial paths by trading in their current car loans for better terms. Success in this venture depends on timely car payments, credit scores, and other financial factors. Among the standout companies, LendingTree excels in loan comparisons, RateGenius is commendable for easy online quotes, LightStream caters to those with strong credit, PenFed Credit Union offers competitive rates, RefiJet suits those seeking larger loans, and LendingClub is a haven for fair credit applicants.
However, diving into the specifics of each option is crucial, as age, mileage restrictions, and other criteria play a part. With this knowledge, consumers can navigate the auto refinancing landscape confidently.
