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Best Auto Refinance Rates

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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.

Loan Term
  • All
  • 48 to 84 months
  • 36 to 72 months
  • 24 to 84 months
Min. Credit Score
  • All
  • 500
  • 510
  • 550
  • 575
  • 680
Min Cred Score
Min Rate Term
Min APR*
Cred Score
Rate Term
48 to 84 months
  • Average monthly savings of $150
  • Work with personal loan concierge to compare options
  • A+ BBB Rating
Cred Score
Rate Term
36 to 72 months
  • Great for customers with limited/no credit
  • Offers special military rates
  • A+ BBB rating
Cred Score
Rate Term
24 to 84 months
  • Below-average credit scores accepted
  • Great interest rates
  • Smooth and easy online experience
Cred Score
Rate Term
36 to 72 months
  • Average savings of $111/month
  • Secure, fully online platform
  • Refinancing available for cars, trucks, or SUVs
Cred Score
Rate Term
24 to 84 months
  • 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 ProviderStarting Refinance APRLoan AmountsMinimum Credit ScoreLoan TermsOverall Rating
Auto Approve5.24%$5,000-$85,00058012-84 months4.5
myAutoloan4.49%$5,000 minimum and up57524-72 months4.6
iLending4.49%Varies56012-84 months4.5
Consumers Credit Union7.04%No minimum or maximum620Up to 84 months4.6
Auto Credit ExpressVariesVariesNo minimumVaries4.4

*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

Quick Facts

Starting APR: 5.24%

Loan amounts: $5,000 to $85,000

Loan terms: 12 to 84 months

Availability: 50 states

Minimum credit score: None

What Stands Out

In addition to low rates for refinance auto loans, Auto Approve is one of the most flexible refinancing providers on the market. If you need to get a new loan for something other than your car or SUV, the company also allows you to refinance your ATV, boat, motorcycle, RV, and more.

Auto Approve Pros & Cons

Auto Approve ProsAuto Approve Cons
Low starting refinance loan ratesCharges an origination fee
Easy online application processNo auto refinancing for commercial vehicles
Financing available for alternative vehicles

myAutoloan: Best Loan Marketplace

Quick Facts

Starting APR: 4.49%

Loan amounts: $5,000 minimum

Loan terms: 24 to 84 months

Availability: 48 states (not available in Alaska or Hawaii)

Minimum credit score: 575

What Stands Out

As a loan marketplace, myAutoloan allows you to get offers from lenders and compare them all at once in the same place. This is one of the easiest ways to find the lowest refinance rates for your situation.

myAutoloan Pros & Cons

myAutoloan ProsmyAutoloan Cons
Simple, efficient online processNot available to borrowers in Alaska or Hawaii
Marketplace model lets you get multiple offers easilyHas several vehicle restrictions
Available to people with lower credit scores

iLending: Low Rates for Refinancing

Quick Facts

Starting APR: 4.49%

Loan amounts: Varies

Loan terms: Up to 84 months

Availability: 50 states

Minimum credit score: 560

What Stands Out

iLending is a versatile online refinancing loan broker that works with a multitude of lenders. This allows iLending to find competitive rates for a wide range of borrowers – even those with lower credit scores.

iLending Pros & Cons

iLending ProsiLending Cons
Helpful customer serviceNot a direct lender
Refinancing options for lower credit scoresLimited details available online
Low rates for good credit borrowers

Consumers Credit Union: Top Credit Union

Quick Facts

Starting APR: 7.04%

Loan amounts: No minimum or maximum

Loan terms: Up to 84 months

Availability: 50 states

Minimum credit score: 640

What Stands Out

As member-owned organizations, credit unions give borrowers alternatives to commercial lenders. Consumers Credit Union offers highly flexible refinance auto loans with no minimum or maximum at reasonable rates. To join, you only need to make a $5 donation to the organization’s charitable fund and maintain a $5 minimum balance in a savings account.

Consumers Credit Union Pros & Cons

Consumers Credit Union ProsConsumers Credit Union Cons
Flexible loan amountsRequires five references to apply for a loan
Offers mechanical repair coverage policy, similar to an extended car warrantyStarting APR is higher than many providers
Loan terms up to 84 months availableHigh minimum credit score requirement

Auto Credit Express: Best for Bad Credit

Quick Facts

Starting APR: Varies

Loan amounts: Varies

Loan terms: Varies

Availability: 50 states

Minimum credit score: None

What Stands Out

The reason you don’t see much specific information for Auto Credit Express is that it’s a specialty loan broker that deals primarily with bad credit and no credit borrowers. It’s a good option for those who may have trouble securing a refinance auto loan elsewhere.

Auto Credit Express Pros & Cons

Auto Credit Express ProsAuto Credit Express Cons
Good options for borrowers with bad creditMust work with a car dealer in the company’s network
Offers financing options for people with bankruptciesLoan rates and terms are highly variable
Special rates for military
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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.

What Are Current Auto Loan Refinance Rates?

While several factors influence your auto refinance rates, your credit score is by far the single most important. Credit-scoring agencies like FICO® and VantageScore provide a rating ranging from 300 to 850 that indicates your creditworthiness – or, how likely you are to repay your loan on time – to lenders. Loan providers then use this information to calculate your rates.

Your credit score has a profound impact on your refinance auto loan rates. Borrowers with lower credit scores pay significantly higher interest rates to refinance and may have a hard time finding credit approval. The table below shows the average auto refinance rates by credit score and loan term for both new and used cars based on data from RateGenius:

Credit Score Range36 Months48 Months60 Months72 Months

Factors That Affect Your Credit Score

Your credit score takes several factors into account, including:

  • Payment history: Any late or missed payments on your credit history can cause your score to go down.
  • Credit usage: Generally speaking, the less of your available credit you’re using, the higher your credit score will be. 
  • Credit mix: Having a diverse mix of credit products such as a mortgage, credit cards, and personal loans can benefit your credit score.
  • Account age: The older the average age of your credit accounts, the better your credit score.
  • New credit: Opening several new credit accounts in a short period of time can negatively affect your credit score.

Auto Loan Refinance Rate Factors

You can use guides and online tools to get a reasonable idea of what your refinance rates may be, but you won’t know for sure until you apply for a loan. That’s because financial institutions use a number of factors to determine the rates they charge you.

These include:

  • Credit score: Borrowers with good or excellent credit scores have access to the lowest refinancing rates. Those with lower scores on their credit report will see higher interest rates and may have a more difficult time finding a loan.
  • Market rates: The Federal Funds Rate is the rate at which lending institutions borrow money from the Federal Reserve. This rate has a major influence over the interest rates you pay to borrow money for an auto loan.
  • Loan term: Longer loan terms tend to come with higher interest rates.
  • Loan-to-value (LTV) ratio: How much you want to borrow compared to how much a vehicle is worth is known as the LTV ratio. Generally, the less you want to borrow against the value of the vehicle, the lower your interest rate will be.
  • Vehicle age: Lenders often charge higher interest rates on older model year vehicles and may have age restrictions on the vehicles they’ll finance.
  • Discounts: Discounts on your interest rate are also part of your overall APR. Many lenders offer discounts for setting up automatic payments, for example.

How Auto Refinance Rates Affect Monthly Payments

The table below shows how changes in your interest rate can affect both your monthly payments and the total cost of interest on a 72-month loan.

Loan AmountAPRMonthly PaymentTotal Interest Paid

Interest Rate vs. APR

It’s easy to confuse the terms “interest rate” and “APR” as the two are closely related. But there is an important difference.

Interest rate refers to the actual rate of interest charged on your loan. The APR in your lending contract includes not only the interest rate but also any additional costs and discounts. Ultimately, your APR reflects what you’ll actually pay to borrow money to refinance your auto loan.

Where To Find Low Car Loan Refinance Rates

Auto refinancing is a common lending product. As a result, you have plenty of options when it comes time to refinance. 

Commercial Banks

Commercial banks typically offer many refinancing options. Brick-and-mortar locations can provide in-person service for customers who prefer it. In addition, many larger institutions have user-friendly online banking services. People who have other accounts at a certain bank may find it convenient to manage their lending and other online banking services in one place.

Credit Unions

Credit unions are similar to banks, but they’re member-owned organizations instead of for-profit corporations. You may find lower interest rates at a credit union than you would at a bank, as well as fewer fees and penalties. Credit unions do require membership. However, there are many national credit unions that offer membership to anyone – often for just a small charitable donation.

Online Lending Providers

It’s become increasingly common to find lenders that operate solely online without any physical branches. Some of these are direct lenders that serve as the online face of a larger bank. Rather than direct providers, these online services help line you up with lenders that offer competitive refinancing rates for your situation.

Car Dealerships

It’s not nearly as common to get a refinancing loan at a car dealership as it is to get a purchase loan on a new car, but that doesn’t mean it’s impossible. Since your car dealer regularly works with lenders, they may have access to refinancing options as well. 

How To Get a Lower Refinancing Rate

Improving your credit score takes time, but there are still things you can do in the meantime to get a lower auto refinance rate. Here are some of the most effective:

  • Add a down payment: Putting down more money when you refinance lowers the LTV ratio even further. This can net you a lower interest rate.
  • Take on a shorter term: Refinancing to a shorter repayment term often means a higher monthly payment but also a better rate.
  • Add a co-signer: A co-signer is someone who agrees to take responsibility for your loan with you on a loan application. Having one can often get you lower rates.
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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.