Are you struggling to make your car payment every month? Or maybe your monthly payment is manageable, but your interest rate is higher than it should be.
According to Statistic Brain‘s Auto Loan Financing and Leasing Statistics, the average auto loan interest rate is 4.16%. If your rate is far more than that, it’s a good idea to shop around and see what offers you can get through refinancing.
There are many online lenders available that offer auto loan refinancing and make the process convenient. When comparing them, you’ll want to consider vehicle restrictions, loan amounts, interest rates, fees, loan terms, and the loan approval process.
The right fit for you depends on your specific circumstances and which company best meets your needs. After reviewing and comparing dozens of options, here are our top five picks to help you in your search.
5 best auto refinance companies
Here are our picks for the best auto refinance companies of 2018.
Next up is Autopay which aims to make car loans simple, fair, transparent, and friendly. The average Autopay customer who refinances their auto loan saves $165 per month and reduces their APR by 50%.
The company is not a lender itself but matches applicants with lenders and coordinates loans. It partners with a network of financing institutions and credit unions across the country, each with its own criteria for approvals. This enables it to provide a wide spectrum of solutions to customers.
Loan amounts range from $2,500 to $100,000, and loan terms range from 24 months to 84 months. In addition to traditional refinancing, the company offers cash-back refinancing where you can get up to $12,000. It also offers lease payoff refinancing, which lets you pay off your lease early and keep your car at the end of your base term.
You can apply online in a matter of minutes and get an answer without hurting your credit score. The application requires a drivers license, insurance, proof of income, proof of residence, and a payoff letter.
Lending Club is a marketplace lending platform that connects borrowers with lenders. It has helped over 1.5 million customers reach their financial goals so far. Like the other leading companies, you can apply online without hurting your credit.
After you apply, LendingClub will communicate with its network of lenders. If you qualify, you will receive multiple offers. You can review the terms of each offer and choose the one that suits you best. The lender you choose will pay off your old lender and your new loan will be all set.
To qualify with LendingClub, your current vehicle needs to be for personal use, it must have under 120,000 miles, and it can be no more than 10 years old. RVs, motorcycles, salvaged vehicles, and commercial vehicles aren’t eligible.
Your existing auto loan can range from $5,000 to $55,000, but it must have been initiated at least one month prior and must have at least 24 months of remaining payments. As for costs, your APR will depend on several factors so will be revealed after applying, and there are no fees for origination, application, or prepayment.
It is unique because it offers an unsecured auto loan if your credit is excellent. For those who don’t qualify for an unsecured loan, you receive a secured loan for the vehicle like with most other lenders.
Additionally, LightStream has an unusually high loan amount limit, so this is a good option if your car loan is more than $40,000 to $50,000. It also has no restrictions on vehicles for which you seek the loan refinancing, which is good if you have an older car or one with high mileage.
If you are not fully satisfied with your loan, you can fill out a survey within 30 days, and LightStream will send you $100 through its loan satisfaction guarantee program.
As with the previous companies, LightStream is a lender with innovative proprietary technology which eases the lending process. You can complete the whole loan process from a computer or smartphone. Further, you can get pre-qualified without hurting your credit.
As for the loan terms, LightStream offers fixed-rate installment loans which don’t have any fees or prepayment penalties. Loan amounts range from $5,000 to $100,000, and loan terms range from 24 to 84 months.
The interest rate you get varies based on your loan term and credit profile. If you do not sign up for AutoPay, the rates increase by .50%.
This lender is one of the best for people with excellent credit and is still worth looking into if your credit is fair-to-good.
Lastly, is OpenRoad. This lender has helped tens of thousands of its customers to save more than $100 per month by refinancing their auto loans, and it has a 98% customer satisfaction rating.
OpenRoad refinances personal vehicles with 150,000 miles or less, are no older than 10 years, and which have a maximum loan-to-value that doesn’t exceed 120% of the vehicle’s wholesale value. Some other restrictions apply.
To get qualified, you will need to provide the account number and lien holder for your current loan, a copy of your vehicle registration, your vehicle identification number (VIN), and your car insurance information. Additionally, you may need to provide proof of income and proof of residence.
You can apply online in just a few minutes, and most will receive an answer within an hour.
SpringboardAuto makes refinancing your auto loan a breeze. You can find out within 60 seconds if you qualify and it won’t hurt your credit score. How? The company has an online platform where you can quickly fill out an application.
To apply, you will need to provide your name, current address, income information, and car details. Your vehicle must have less than 125,000 miles, be a 2010 model or newer, and be for personal use only. The payoff amount also can’t be more than $45,000.
Upon approval, you can use SpringboardAuto’s proprietary loan configurator tool to customize the loan to fit your needs. Adjust the loan term duration and down payment amount to see how it impacts your interest rate, monthly cost, and total price. It’s easy to see if you can save money or not.
The APR and origination fee will depend on several factors including the state you live in, your credit, your income, and more. The best way to figure out all the costs is to apply.
If you find the right deal for you, you can upload documents from your computer or smartphone and sign the loan electronically. SpringboardAuto will pay off your old loan, and you’ll begin paying the lender for your new one.
Note: The company has a list of vehicle makes/types it deems eligible and ineligible, so visit the website for up-to-date information to make sure you qualify.
While the above five companies were the top picks that we recommend you check first, these companies are also worth considering.
USAA is an organization that serves the active military, former military, cadets or midshipmen and families. You need to be in one of these groups to qualify for membership and access its financial services. It offers an easy application process, good rates, and charges no fees. In addition, it offers low-priced total loss protection, debt protection in cases of financial emergency and an extended vehicle protection program with no deductible. It’s a great refinance option if you are qualified to become a member.
- Vehicle restrictions: Not specified.
- Loan amounts: No set limits. Apply to find out how much you qualify for. It does list loan amounts in the following three tiers: less than $15,000, from $15,000 to $24,999 and $25,000 or more.
- Interest rates: Start at 2.49% and vary based on the loan term and your credit profile. A discount is available when you sign up for AutoPay.
- Fees: None.
- Loan term: 12 to 72 months.
- Loan process: Apply online and get a response in as little as five minutes. If approved, e-sign your loan and print your check instantly.
Up2Drive, a division of BMW Bank of North America, specializes in auto loans and refinancing. It has award-winning customer service, online tools to save time and industry-leading online security technology. Interest rates are competitive and the loan process is streamlined. However, the loan amount maxes out at $50,000 and some vehicle restrictions apply.
- Vehicle restrictions: Vehicles must have less than 100,000 miles and must be for personal use. Other restrictions apply.
- Loan amounts: $7,500 to $50,000.
- Interest rates: Start at 3.19% and vary based on credit profile. A .50 discount is offered when enrolling in AutoPay.
- Fees: None.
- Loan term: 36 to 72 months.
- Loan process: Apply online. If approved, you are sent a loan package with a check. You can then use that check to pay off your old loan.
Capital One is a well-known lender that offers a good all-around auto refinancing program. You can prequalify and receive offers without affecting your credit report. If you accept an offer, the loan can be processed quickly online. Capital One does have more restrictions on vehicles than other lenders and a lower loan amount limit. However, interest rates are competitive, no fees are charged and the loan process is convenient.
- Vehicle restrictions: Capital One only finances new and used cars, minivans, SUVs and light trucks that are for personal use. All vehicles must be 7 years old or newer. It also has restrictions on certain brands.
- Loan amounts: $7,500 to $40,000.
- Interest rates: Start at 2.99%.
- Fees: None.
- Loan term: 24 to 72 months.
- Loan process: Apply online. Capital One prequalifies you with no effect on your credit score. It sends you an offer and only if you select it is an inquiry posted on your credit report. You can then finalize the loan online and may need to send in supporting documents.
MyAutoLoan is one of our top picks because it gives borrowers options. It works differently than the other lenders because it isn’t providing the loan but is connecting borrowers with lenders. By visiting its website, you can fill out a simple form and, if approved, you receive offers from four different lenders. This way you can compare terms and choose the best fit for you.
- Vehicle restrictions: Restrictions vary by lender.
- Loan amounts: 8,000 to $99,000.
- Interest rates: Start at 1.99% and vary based on loan term and credit profile.
- Fees: None.
- Loan term: 24 to 72 months.
- Loan process: Online and fast. Fill in an offer form and submit it to receive four offers. Note that approval is not guaranteed. Once you choose an offer, you fill out the paperwork for that lender and may receive an online certificate or check in as little as 24 hours.
Find the right auto refinance company for you
If you have an auto loan that has a high interest rate, you should around and see whether there is a better deal out there. Many lenders, such as the five listed here, offer competitive rates to earn your business. If you would like to review these companies in greater depth, along with many others, head over to our auto loan refinance review page. You will find a list of companies, the rates offered and reviews by other consumers all in one place.