Top 5 Auto Refinance Companies (March 2023)
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%+ |
$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.
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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