Which Are The Best Companies for Auto Loan Refinancing

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 2016 Auto Loan Financing and Leasing Statistics, the average auto loan interest rate was 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 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.

Lightstream

Lightstream is the online consumer lending division of SunTrust bank. It is unique because it offers an unsecured auto loan if your credit is excellent. For those who don’t qualify for ank unsecured loan, you receive a secured loan for the vehicle like with most other lenders. 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 sends you $100 through its loan satisfaction guarantee program.

  • Vehicle restrictions: None.
  • Loan amounts: $5,000 to $100,000.
  • Interest rates: Start at 2.49% to 7.24%. Interest rates are fixed. The 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%.
  • Fees: None.
  • Loan term: 24 to 84 months.
  • Loan process: Online and very easy. Apply online, e-sign your loan agreement, set up your loan for funding and receive funds in as little as one business day.
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USAA

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

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.
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Capital One

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 affect 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

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.
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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 review page. You will find a list of companies, the rates offered and reviews by other consumers all in one place.

Auto Lender Recommendations

LenderMinimum APRLoan Amount 
2.19% APR$5K to $100KApply
1.99% APRUp to $15K
(Military only)
Apply
5% APR$7.5K to $45KApply
5.99% APR$20K to $35KApply