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A refinance auto loan can help you save money – but only if you get one at the right time and with the best lender for your financial needs. Our finance team took an in-depth look at the auto refinancing market to help guide you through the process.
In this article, we’ll name five providers from our industry-wide review that offer some of the best auto loan rates for refinancing. You’ll also find everything you need to know about auto loan refinancing, including how rates work and how to apply.
Key Takeaways
- Between 4.49% and 7.04%, the best auto refinance rates are offered by Auto Approve, myAutoloan, iLending, Consumers Credit Union, and Auto Credit Express.
- Current auto refinance rates can be found within the range of 4.67% and 13.43% depending on credit score and other factors
- You can find low auto refinance rates at a variety of banks, credit unions, and online lenders
Compare Auto Loan Refinance Rates
Compare which options fit your budget, credit score, and term length below.
- All
- 48 to 84 months
- 36 to 72 months
- 24 to 84 months
- All
- 500
- 510
- 550
- 575
- 680
Refinance Loan
Cred Score
Rate Term
APR*
- Average monthly savings of $150
- Work with personal loan concierge to compare options
- A+ BBB Rating
Refinance Loan
Cred Score
Rate Term
APR*
- Great for customers with limited/no credit
- Offers special military rates
- A+ BBB rating
Refinance Loan
Cred Score
Rate Term
APR*
- Below-average credit scores accepted
- Great interest rates
- Smooth and easy online experience
Refinance Loan
Cred Score
Rate Term
APR*
- Average savings of $111/month
- Secure, fully online platform
- Refinancing available for cars, trucks, or SUVs
Refinance Loan
Cred Score
Rate Term
APR*
- No application fee
- Lending platform that partners with banks
- Approval and loan terms based on many variables, including education and employment
Who Has The Best Auto Refinance Rates?
Currently, the best auto refinance rates currently are offered by both myAutoloan and iLending at a starting APR of 4.49%. Auto Approve, Consumers Credit Union, and Auto Credit Express also have some of the lowest vehicle loan rates as well. However, we recommend getting multiple refinancing offers to determine the best option for your financial situation. Below are key details and ratings we gave each lender in our industry-wide study.
Compare Auto Refinance Rates
Below we’ve pulled together the lowest auto refinance rates and the loan terms for each of our top lenders:
| Refinance Auto Loan Provider | Starting Refinance APR | Loan Amounts | Minimum Credit Score | Loan Terms | Overall Rating |
| Auto Approve | 5.24% | $5,000-$85,000 | 580 | 12-84 months | 4.5 |
| myAutoloan | 4.49% | $5,000 minimum and up | 575 | 24-72 months | 4.6 |
| iLending | 4.49% | Varies | 560 | 12-84 months | 4.5 |
| Consumers Credit Union | 7.04% | No minimum or maximum | 620 | Up to 84 months | 4.6 |
| Auto Credit Express | Varies | Varies | No minimum | Varies | 4.4 |
*The overall ratings in this chart reflect the company’s score in our industry-wide insurance study and are not specific to refinancing. Rates and terms are current as of 9/10/23.
Lowest Car Loan Refinance Rates Lenders
In each section below we will break down our top picks for the lowest auto refinance rates, their loan terms, what makes them stand out, and their pros and cons.
Auto Approve: Best for Refinancing
What Does it Mean to Refinance an Auto Loan?
When refinancing an auto loan, you take out a new loan to pay off your existing one. Your refinance loan will come with a new interest rate, term length, and loan agreement. There are a few reasons why you might want to do this:
- Lower monthly payments: Refinancing your vehicle loan to get a longer term can lower your monthly debt obligation.
- Shorter loan term: On the other hand, you can choose to refinance to a shorter loan term. This will result in higher monthly payments, but you’ll pay off your loan sooner.
- Better interest rate: For a variety of reasons, you may now have access to lower interest rates. Refinancing allows you to take advantage of that situation and save money.
- Financial strategy: You can also use refinancing as a tool to help you achieve other financial goals, such as paying off another type of loan.
What To Look For in a Refinance Auto Loan
There’s more to auto loans than interest rates alone. When you’re shopping for a refinancing provider, you’ll also need to consider:
- Annual percentage rate (APR): The rate you pay to borrow money, including fees, determines the overall cost of the loan.
- Loan term: You can choose the length of time you have to pay back your loan. Lenders typically offer options up to 84 months.
- Origination fee: Many lenders charge a fee to open, or originate, your loan.
- Payment-related fees: Lenders charge different fees for late or missed payments.
- Prepayment penalty: Some auto loans come with a penalty for paying them off early.
Auto Loan Refinance Rates: A Complete Guide
When you choose to refinance your vehicle, the rate you get on your new auto loan is one of the most important considerations. Across a multi-year loan term, even a slight difference in your rate can have a significant impact on how much interest you pay.
What Is a Good Auto Refinance Rate?
A good auto refinancing rate currently would be anything between 4.67% and 6.15%. These rates are reserved for those with excellent credit scores and you may be able to get lower if you are in this credit band. However, the rate that is best for you will depend on your current financial situation.
Best Auto Refinancing Rates: Conclusion
Taking out a refinance auto loan can be a smart, money-saving move for many people. However, it’s not always the right time to do so. Before attempting to refinance your vehicle loan, make sure it will work out in your favor. You can use tools like car loan calculators to help you determine whether it’s a good choice.
When it comes time to apply, remember that shopping around will help you find the best rates, terms, and conditions for your situation.
Best Car Refinance Rates: FAQ
Below are some frequently asked questions about the best auto refinance rates:
What are the best companies with the lowest auto refinance rates?
Based on our extensive research, the best auto refinance companies with the lowest rates include Auto Approve, myAutoloan, ILending, Consumers Credit Union, and Auto Credit Express. These companies have affordable rates, great customer service, and a great reputation in the industry.
What are auto refinance rates today?
The average auto refinance rate today across all credit scores is 8.72%. However, this is just an average so the rate you’ll get depends on your unique financial situation.
Is refinancing a car worth it?
Refinancing a car is worth it in many situations. If you can afford to take on higher monthly payments with a shorter term or you have access to a lower interest rate, you could save money over the life of the loan. However, auto refinancing won’t always save you money and could cost you in some situations.
When should you refinance your car loan?
Most experts suggest waiting at least six months to a year before refinancing your car loan. This allows time for your credit score to recover from taking out the initial loan and improve from making regular monthly car payments.
Does refinancing a car hurt your credit?
Refinancing a car loan may hurt your credit score temporarily, as does taking out any kind of loan. However, this effect is temporary. Your credit score should bounce back after a few months and could improve after an extended period of making regular payments.
What’s a good score to refinance a car?
A good score to refinance a car is any score that’s significantly higher than the score you had when you took out your current auto loan. A score above 700 is likely to get you access to the lowest rates.
What are the disadvantages of refinancing a car loan?
The disadvantages of refinancing a car loan include any loan origination fees or one-time costs, additional interest if you extend your loan term, and a temporary negative impact on your credit score.
Our Methodology
Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best auto loan providers.
- Industry Standing: Trust and reliability are two of the most important qualities in a lender. Our team considers current industry ratings from organizations such as the Better Business Bureau (BBB) along with factors such as a company’s age.
- Availability: We examine how easy it is for borrowers to get a loan from each provider. Lenders that offer loans to meet a variety of customer needs receive high ratings.
- Loan Details: Our researchers comb through the fine print to learn about the loan amounts, term lengths, and types of loans each provider offers.
- Rates and Discounts: We take an in-depth look at the range of rates each provider offers for borrowers of different credit scores. Our team also factors in the discounts available with each lender.
- Customer Service: Our team considers customer reviews and complaints when determining this score. We also consider the ease and availability of help online, over the phone, or in person.
