Ashley HarrisonDeputy Editor, Education
Ashley is a deputy editor of Education at Forbes Advisor. She graduated from Utah Tech University with a bachelor’s in English with an emphasis in creative writing. Ashley worked as an editorial assistant and then editor on loans and mortgages conten...
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Ashley HarrisonDeputy Editor, Education
Ashley is a deputy editor of Education at Forbes Advisor. She graduated from Utah Tech University with a bachelor’s in English with an emphasis in creative writing. Ashley worked as an editorial assistant and then editor on loans and mortgages conten...
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Written By
Ashley Harrison
Ashley HarrisonDeputy Editor, Education
Ashley is a deputy editor of Education at Forbes Advisor. She graduated from Utah Tech University with a bachelor’s in English with an emphasis in creative writing. Ashley worked as an editorial assistant and then editor on loans and mortgages conten...
See Full Bio
Ashley HarrisonDeputy Editor, Education
Ashley is a deputy editor of Education at Forbes Advisor. She graduated from Utah Tech University with a bachelor’s in English with an emphasis in creative writing. Ashley worked as an editorial assistant and then editor on loans and mortgages conten...
See Full Bio
Deputy Editor, Education
Rachel WitkowskiCorrespondent/Editor
Rachel Witkowski is an award-winning journalist whose 20-year career spans a wide range of topics in finance, government regulation and congressional reporting. Ms. Witkowski has spent the last decade in Washington, D.C., reporting for publications i...
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Rachel WitkowskiCorrespondent/Editor
Rachel Witkowski is an award-winning journalist whose 20-year career spans a wide range of topics in finance, government regulation and congressional reporting. Ms. Witkowski has spent the last decade in Washington, D.C., reporting for publications i...
See Full Bio
Rachel Witkowski
Rachel WitkowskiCorrespondent/Editor
Rachel Witkowski is an award-winning journalist whose 20-year career spans a wide range of topics in finance, government regulation and congressional reporting. Ms. Witkowski has spent the last decade in Washington, D.C., reporting for publications i...
See Full Bio
Rachel WitkowskiCorrespondent/Editor
Rachel Witkowski is an award-winning journalist whose 20-year career spans a wide range of topics in finance, government regulation and congressional reporting. Ms. Witkowski has spent the last decade in Washington, D.C., reporting for publications i...
See Full Bio
Reviewed
& 1 other
Updated: Aug 6, 2024, 7:21pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
If you’re looking to save money with a lower rate or pay your loan off faster with a shorter term, auto loan refinancing can help. When it’s time to find the right lender to refinance your auto loan, you should first compare multiple options. This includes reviewing each lender’s interest rate, fees, maximum loan amount and the minimum credit score needed.
Forbes Advisor evaluated more than 20 auto refinance lenders based on criteria such as loan cost, eligibility requirements and customer experience. We also looked at the minimum annual percentage rate (APR) for each lender. Although your exact loan terms and the rate you receive depend on your personal financial profile, these seven lenders scored the highest based on general criteria and had the lowest rates.
Read More
Auto Loan Basics
- Best Auto Loan Rates
- Best Auto Loan Refinance Lenders
- Auto Loan Calculator
- Car Loan Payoff Calculator
Why you can trust Forbes Advisor
Featured Partner Offers
1
Gravity Lending
APR range
4.99% to 14.99%
Minimum Credit Score
640
Loan amounts
$10,000 to $200,000
Best Auto Loan Refinancing Rates 2024
LendingClub
3.6
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
APR range
Starting at 4.99%
Loan amounts
$4,000 to $55,000
Minimum Credit Score
510
On Fiona.com’s Website
Starting at 4.99%
$4,000 to $55,000
510
Editor’s Take
LendingClub offers terms from 24 to 84 months and auto loans between $4,000 to $55,000. The maximum amount you can refinance is on the low side compared to other lenders, so keep that in mind if you have a higher loan balance.
To qualify for an auto refinance with LendingClub, you must have at least 24 months of payments left on your current vehicle and it must be for personal use only. The vehicle must also be no more than 10 years old and have mileage under 120,000.
Pros & Cons
- No origination fee or prepayment penalty
- Low minimum credit score
- Fast funding available
- Low maximum loan amount
- Not available in all states
Details
Availability
LendingClub auto loans are available in most states except Alaska, Hawaii, Maine, Mississippi, New Hampshire, New York, North Dakota, Vermont, West Virginia and Wyoming.
Turnaround time
LendingClub offers funding in two days or more.
Credit requirements
LendingClub requires a minimum credit score of .
Navy Federal Credit Union (NFCU)
3.3
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
APR range
Starting at 4.54%
Loan amounts
$5,000 minimum (no maximum)
Minimum Credit Score
Does not disclose
On Fiona.com’s Website
Starting at 4.54%
$5,000 minimum (no maximum)
Does not disclose
Editor’s Take
Navy Federal Credit Union (NFCU) was initially founded in 1933 by a group of U.S. Navy Department employees, but has since grown to include members from each branch of the U.S. military as well as their family members. Auto refinancing through NFCU starts at $5,000 with no set maximum, and repayment terms range from 12 to 96 months. A key perk that differentiates NFCU’s auto loan product from competitors is that it offers $200 to qualifying borrowers who refinance their auto loan with NFCU if it came from another lender.
Like other credit unions, NFCU doesn’t require you to be a member to apply for refinancing, but you’ll have to join if you are approved and want to accept the loan. To be eligible for membership, you (or one of your family members) must have ties to the U.S. military, Department of Defense or National Guard.
Pros & Cons
- No set loan maximum
- $200 cashback for refinancing your auto loan from another lender
- Terms up to 96 months
- Must join the credit union to finalize the loan
- Charges late fees
- Autopay discount not offered
Details
Availability
NFCU auto refinance loans are available in all 50 states as well as Washington, D.C. You can also apply online or through their mobile app.
Turnaround time
If you are approved, you can expect your loan to be funded within one to seven days. Keep in mind that a check will be either sent to your address or made available for pick up at a local branch, which could take longer compared to funding from other online lenders.
Credit Requirements
NFCU does not disclose a minimum credit score on its website but you might need a credit score of at least Does not disclose to qualify, according to other external websites that evaluate the lender.
Consumers Credit Union (CCU)
3.6
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
APR range
Starting at 6.54%
with autopay
Loan amounts
Up to $600,000 (no minimum)
Minimum Credit Score
None
On Consumers Credit Union’s Website
Starting at 6.54%
with autopay
Up to $600,000 (no minimum)
None
Editor’s Take
Consumers Credit Union (CCU) is an Illinois-based nonprofit organization that provides a variety of banking and lending products, including auto loan refinancing. Borrowers can refinance loan amounts up to $600,000, according to a credit union representative. The high loan limit is helpful if you’re looking to refinance a large amount. Repayment terms are very flexible and go up to 84 months.
If you are approved, CCU will send the funds directly to your previous lender to pay off your old loan. You can also take advantage of a 0.25% rate discount if you sign up for automatic payments.
Keep in mind that while you don’t have to be a CCU member to apply for refinancing, you’ll have to join the credit union if you are approved and want to accept the loan. Anyone who pays a one-time $5 fee to the Consumers Cooperative Association is eligible for membership.
Pros & Cons
- No minimum loan amount
- 0.25% autopay discount
- Same-day funding available
- Must join the credit union to finalize the loan
- Membership requires $5 fee
- Charges late fees
Details
Availability
CCU auto loans are available in all 50 states as well as Washington, D.C. Keep in mind, though, that you’ll have to meet membership eligibility requirements to finalize a loan.
Turnaround time
If you’re approved for a loan, CCU offers funding as soon as the same day. The funds will be sent directly to your previous lender.
Credit Requirements
CCU doesn’t have a specific minimum credit score. Approval will depend on various factors in the applicant’s financial history, such as debt and income.
PenFed Credit Union
3.3
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
APR range
Starting at 5.44%
Loan amounts
$500 to $150,000
Minimum Credit Score
PenFed does not disclose this information
Learn More
Read Our Full Review
Starting at 5.44%
$500 to $150,000
PenFed does not disclose this information
Editor’s Take
PenFed auto loans have terms from 36 to 84 months, but if you’re refinancing a used vehicle the maximum term is 72 months. The credit union offers auto refinancing amounts from $500 to $150,000, which is a good option if you need to finance a smaller amount.
PenFed also permits cash-out refinancing, allowing you to borrow more than you currently owe on your car to use for other expenses. You can borrow up to 125% of the amount needed in the U.S. and up to 110% in Puerto Rico and Virgin Islands. You can also apply for a PenFed loan completely online.
Pros & Cons
- Low minimum loan amount for some terms
- Offers cash-out refinancing
- 100% online application process
- Requires credit union membership
- Does not disclose minimum credit score needed to qualify
- Charges a late payment fee
Details
Availability
PenFed offers auto loans in all 50 states.
Turnaround time
PenFed offers funding in one day or less after you close on the loan.
Credit requirements
PenFed does not disclose the minimum credit score needed to qualify for their auto loans.
United Services Automobile Association (USAA)
3.2
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
APR range
Starting at 5.64%
Loan amounts
$5,000 to $500,000
Minimum Credit Score
560
On Fiona.com’s Website
Starting at 5.64%
$5,000 to $500,000
560
Editor’s Take
USAA offers auto loans from $5,000 to $500,000 with repayment terms from 12 to 84 months.
If you apply for a USAA auto refinancing loan, you’ll likely receive an approval decision within five minutes. If approved, you may have the funds within 24 hours.
To be eligible for a USAA loan, you must be a U.S. military member or veteran—spouses and children are also eligible—and be a member of the credit union.
Pros & Cons
- 0.25% autopay discount
- Borrowers with poor or fair credit might still qualify
- Fast approval and funding times
- Must join the credit union to finalize the loan
- Poor Trustpilot reviews
- Charges late fees
Details
Availability
You have to join the credit union to finalize a USAA auto loan, but loans are available in all 50 states as well as Washington, D.C.
Turnaround time
When applying online, most USAA borrowers can get an approval decision within minutes. If approved, you can receive the funds within one business day.
Credit requirements
USAA requires a minimum credit score of 560.
Bank of America
3.4
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
APR range
Starting at 7.44%
Loan amounts
$7,500 minimum (no maximum)
Minimum Credit Score
580
On Fiona.com’s Website
Starting at 7.44%
$7,500 minimum (no maximum)
580
Editor’s Take
Bank of America offers auto refinancing terms of 48, 60 and 72 months if you apply online, but the bank says you can discuss other terms with a loan officer after submitting your application. The bank offers loan amounts ranging around $7,500 to $100,000, according to different websites. However, keep in mind that the vehicle you plan to refinance can’t be older than 10 years.
Bank of America offers rate discounts from 0.25% to 0.50% if you already have a relationship with them—like a checking or savings account. You can also apply for an auto refinance loan with the bank completely online.
Pros & Cons
- Rate discount for bank customers
- Fast funding available
- No prepayment penalty
- No prequalification available
- Charges a late payment fee
Details
Availability
Bank of America offers auto loans in all 50 states as well as Washington, D.C.
Turnaround time
Bank of America typically offers funding within one business day.
Credit requirements
Bank of America requires a minimum credit score of 580.
LightStream
3.3
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
APR range
Starting at 7.49*
with AutoPay and Excellent Credit
Loan amounts
$5,000 to $100,000
Minimum Credit Score
660
On Fiona.com’s Website
Starting at 7.49*
with AutoPay and Excellent Credit
$5,000 to $100,000
660
Editor’s Take
LightStream offers auto refinance terms from 36 to 84 months and loan amounts from $5,000 to $100,000 , which could make LightStream a good option if you’re looking to borrow a large amount. The lowest rate above is based on a borrower with excellent credit, and includes a 0.50% discount that LightStream offers to borrowers who sign up for autopay.
You can apply for LightStream auto refinancing online and get funds deposited directly into your account. LightStream does not impose any vehicle restrictions on the borrower, either. No matter the year, make, model or mileage, you could still qualify.
Pros & Cons
- Same-day funding offered
- Offers autopay discount
- No late payment fees or prepayment penalty
- No prequalification process
- Must have good to excellent credit to qualify for best rate
- Poor TrustPilot customer reviews
Details
Availability
LightStream offers auto loans in all 50 states.
Turnaround time
LightStream offers same-day funding and can fund your loan as soon as the same day you apply.
Credit requirements
LightStream requires a minimum credit score of 660. However, you will need an excellent credit score in order to get the lowest interest rate offered. Conversely, the maximum APR is 20.49%.
Summary: Best Auto Loan Refinancing Rates
What Is a Good Rate to Refinance a Car Loan?
Since auto loan rates are constantly changing, it’s difficult to know when refinancing will be worth it. The best thing to consider is whether or not rates have decreased since you took out your original loan.
If you can get a lower rate than what you currently have, it might be a good time torefinance your auto loan. A lower rate could limit the amount of interest you pay over the course of your loan term and reduce your monthly payments.
Related:Best Auto Loan Rates
Can I Refinance a Car Loan With Bad Credit?
Yes, you can refinance yourauto loan with bad credit—some lenders work with scores as low as 520. Just keep in mind that your credit score still matters. So, if your credit is bad, even if you find a lender willing to refinance, your interest rate will be much higher than if you had good credit. Typically, lenders look for a minimum credit score of 670 or higher.
If your score is too low to qualify for an auto refinance, or if the rate you receive is too high, you can always considerrefinancing with a co-signer.
How to Refinance a Car Loan
Here are the steps you should follow to refinance your auto loan:
- Get your paperwork together.Collect all of your current auto loan paperwork and vehicle information, like your vehicle identification number (VIN) and current mileage.
- Compare multiple lenders.You can start with your current auto loan lender and see if they offer refinancing. But don’t just go with the first lender you see—compare multiple lenders and their terms first so you can make an informed decision. Look for lenders that offer low rates, minimal fees and terms that work for you.
- Apply for the loan.Once you choose a lender, fill out their auto refinance application. Before you sign, the lender will make sure you understand all the terms, including interest and any fees you’ll have to pay.
- Close on the loan.If you’re approved for the loan, your current auto loan will be paid off and the lender will send you all of the official paperwork. Once it’s paid off, you’ll start making monthly payments on the new loan.
Featured Partner Offers
1
Consumers Credit Union (CCU)
APR range
Starting at 6.54%
Loan amounts
Up to $600,000 (no minimum)
Minimum Credit Score
None
Methodology
We reviewed 22 popular auto refinance lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We looked for lenders with low rates who had a 3.2-star rating or above. We chose the best lenders based on the weighting assigned to each category:
- Loan cost:30%
- Eligibility and accessibility:25%
- Loan details:20%
- Customer experience:15%
- Application process:10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges, applicable fees and available discounts. We also looked at minimum credit score requirements, maximum accepted mileages, whether each lender accepts co-signers or co-borrowers and the geographic availability of the lender.
Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online application options, mobile apps and turnaround time.
Where appropriate, we awarded partial points depending on how well a lender met each criterion. Note that these rankings only comprise lenders that offer direct lending to consumers; companies that partner with multiple lenders or offer a lending marketplace were not included.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our.
Forbes Advisor Contributor Jamie Young contributed to this article.
Is it worth refinancing a car loan for 1% less?
Any amount you can save in interest is direct savings. If you can shave even 1% off of your current interest rate, that could save you at least $1,000.
For example, let’s say you took out a $25,000 auto loan at a 7% interest rate. You get the balance down to $20,000 and decide to refinance with a 6% interest rate. Just by lowering your rate by 1%, you’ll save over $1,500 in interest over the life of the loan.
See how much you could save using ourauto refinance calculator.
Is it best to refinance a car loan with your current lender?
Many banks and credit unions offer interest rate discounts for current customers. These loyalty discounts are usually about 0.25%, but can be higher with some lenders. If the rate with the discount gets you a low rate that you’re happy with, refinancing with your current lender could be your best option.
However, some lenders will offer you a better deal to move your business to them instead. So, shop around and refinance with a lender that offers the best terms for your situation. You should aim to compare loans from at least three lenders before deciding to stay with your current lender.
Next Up In Auto Loans
- Best Auto Loan Rates
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Auto Loan Basics
- Best Auto Loan Rates
- Best Auto Loan Refinance Lenders
- Auto Loan Calculator
- Car Loan Payoff Calculator
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