Top 5 Auto Refinance Companies (March 2023)
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Looking to refinance and lower your auto payments? We’ve reviewed and ranked the 5 best auto refinance companies based on lowest starting rates, customer reviews, ease of the application process, and number of customers helped.
Wallet Wisely's Top Auto Refinance Companies
Lender |
APR |
Loan Amounts |
Minimum Credit Score |
Vehicle Criteria |
Learn More |
|---|---|---|---|---|---|
|
Lending Tree |
2.69%+Â |
$5,000 - $100,000 |
650 |
<10 years and <120k miles |
 |
|
Auto Approve |
2.94%+ |
$10,000 - $50,000 |
640 |
<8 years and <100k miles |
|
|
Caribou |
4.99%+ |
$10,000 - $150,000 |
650 |
<10 years |
 |
|
Open Road Lending |
4.29%+ |
$10,000 - $100,000 |
580 |
<15 years and <160 miles |
|
|
Auto Credit Express |
3.99%+ |
$5,000 - $45,000 |
525 |
<10 years and <150k miles |
|
Types of Auto Refinancing Options
Auto loan refinancing is the process of taking out a new car loan to pay off the balance of an existing car loan.
Refinancing an existing car loan is helpful for customers who want to:
- Lower the current interest rate
- Lower monthly payments by extending the loan repayment term
- Leverage a good credit score to secure better terms
Refinancing is also beneficial when the buyer won’t be penalized for paying off a current loan early. Occasionally, financial institutions have early repayment fees and penalties. In this case, the benefits of the refinancing agreement should outweigh the consequences of ending the previous loan.
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How Does Auto Refinancing Work?
Auto refinancing works by replacing an existing car loan with a new one. Sometimes, buyers feel trapped in the original loan that they received through a car dealership at the time of purchase. When the interest rate is high or the terms are not favorable, customers may want to refinance at a later date.
The general refinancing process follows a simple format. This includes:
- Finding a new auto loan provider or refinancing company
- Applying and providing essential information during the application process
- Reviewing the approved terms and conditions
- Signing the new loan contract
Auto loan refinancing can be more simple and straightforward than the process to refinance a house. While it still signifies a major financial decision, the principal amount of each loan is often substantially less. This results in a faster and more efficient process that can usually be accomplished online.
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