Stuck with a high-interest car loan? You could be overpaying by thousands in extra interest. The best auto refinance companies in 2025 can help you lower your rate, shrink your monthly payment, and keep more of your money.
Refinancing replaces your current loan with a new one that ideally comes with better terms. If your credit score has improved or interest rates have dropped since you got your loan, it could be the right time to make a move.
This guide breaks down the top auto refinance lenders, what they offer, and how to choose the one that fits your situation best.
8 Best Auto Refinance Lenders
Below, we’ve rounded up the best auto refinance lenders, so you can compare options and find the right fit.
1. Auto Credit Express
- Minimum credit score: 500
- Loan term: Up to 72 months
- Loan amount: $5,000 minimum
2. Consumers Credit Union
- Minimum credit score: 620
- Loan term: Up to 84 months
- Loan amount: Up to $600,000
3. Upstart
- Minimum credit score: 510
- Loan term: 24 to 84 months
- Loan amount: $9,000 – $60,000
4. MyAutoLoan
- Minimum credit score: 575
- Loan term: 24 to 84 months
- Loan amount: $5,000 to $100,000
5. Caribou
- Minimum credit score: 600
- Loan term: 24 to 84 months
- Loan amount: $5,000 to $125,000
6. PenFed Credit Union
- Minimum credit score: Not disclosed
- Loan term: 36 to 84 months
- Loan amount: $500 to $150,000
7. LendingClub
- Minimum credit score: None
- Loan term: Varies by lender
- Loan amount: $5,000 to $55,000
8. Gravity Lending
- Minimum credit score: 500
- Loan term: 36 to 120 months
- Loan amount: $10,000 to $250,000
How to Choose the Right Auto Refinance Lender
Not all lenders offer the same savings. The right auto refinance lender can lower your rate, cut your monthly payment, or help you pay off your car faster—but only if you know what to look for.
Compare APRs, Not Just Interest Rates
Your APR (annual percentage rate) includes both the interest rate and any lender fees. It’s the real cost of the loan. A lender with a low interest rate but high fees can end up being more expensive than one with a slightly higher APR and no extra costs.
Look for lenders that offer prequalification with a soft credit check so you can compare real APR estimates without hurting your credit score.
Watch for Fees That Kill the Deal
Low rates don’t always mean low cost. Some lenders tack on fees that wipe out your savings:
- Origination fees – Charged just to create the loan
- Prepayment penalties – Punish you for paying off the loan early
- Title transfer or state fees – Sometimes hidden in the fine print
Always ask for a full fee breakdown before you sign anything.
Pick the Right Loan Term for Your Goals
Refinancing lets you reset your loan term—but longer isn’t always better. Here’s how to choose:
- Shorter term (24–48 months): Higher monthly payments, less interest overall
- Longer term (60–84+ months): Lower monthly payments, but more interest over time
If you’re refinancing to save money long-term, a shorter term usually wins. If you need breathing room in your budget, a longer term can help—just weigh the trade-off.
Look for Rate Discounts That Save You More
Some lenders offer ways to shave even more off your interest rate:
- AutoPay discount – Save up to 0.25% just for setting up automatic payments
- Loyalty discount – Banks or credit unions you already use may give you a lower rate
- Credit union perks – Membership-based lenders often have lower rates and fees
Even small rate reductions can save you hundreds over the life of your loan.
Choose a Lender With Strong Customer Reviews
Competitive rates don’t mean much if the lender is hard to work with. Before committing, check:
- Ratings on Trustpilot, BBB, and Google
- Complaints about customer service or loan processing delays
- Whether terms and fees are clearly disclosed
You want a lender that’s fast, responsive, and transparent from start to finish.
How to Refinance Your Auto Loan
Refinancing your auto loan can lead to lower monthly payments or serious interest savings—but only if you follow the right steps. Here’s how to do it the smart way:
Step 1: Check Your Credit and Fix Any Errors
Start by pulling your free credit reports from all three major credit bureaus at AnnualCreditReport.com. Look for errors, outdated accounts, or missed payments that could be dragging your score down.
Even small improvements can help you qualify for a lower rate. Most lenders use your FICO score, but each has its own minimum requirements.
Step 2: Shop Around for the Best Rates
Don’t settle for the first offer you see. Compare refinance rates from banks, credit unions, online lenders, and marketplaces.
Look for lenders that offer prequalification with a soft credit check. This lets you preview rates and terms without hurting your score.
Be sure to compare:
- APR (not just the interest rate)
- Loan term options
- Estimated monthly payments
- Total loan cost including fees
Step 3: Gather the Right Documents
Lenders will need basic info about you, your vehicle, and your current loan. Have these ready:
- Driver’s license (or government ID)
- VIN number (from your car or registration)
- Proof of income (pay stubs or tax returns)
- Current loan statement
- Vehicle registration and insurance
Having everything upfront helps speed up the approval process.
Step 4: Submit Applications Within a 30-Day Window
Applying to multiple lenders in a short time—ideally within 30 days—helps protect your credit score. All hard inquiries during that period typically count as one.
Once approved, you’ll receive offers you can compare side by side.
Step 5: Compare Offers and Crunch the Numbers
Don’t just focus on the monthly payment—look at how much you’ll save (or spend) over time. Here’s a quick example:
| Scenario | Before Refinance | After Refinance |
|---|---|---|
| Loan balance | $30,000 | $30,000 |
| Interest rate | 8.5% | 4.5% |
| Monthly payment | $684 | $627 |
| Total interest over loan life | $6,115 | $3,432 |
| Savings | $2,683 |
On the flip side, a lower rate isn’t always a win if you extend your loan too long. Example:
- Original loan: $10,000 at 6% with 3 years left
- New offer: $10,000 at 5% over 6 years
- You pay less monthly—but $3,893 more in interest overall
Always run the numbers to be sure you’re actually saving.
Step 6: Review the Terms Before You Sign
Before you accept, go through the loan agreement line by line. Look for:
- Prepayment penalties
- Unexpected fees
- Balloon payments or changing terms
Once you sign, your new lender will pay off your existing loan, and you’ll start making payments under the new terms.
Bottom Line
If your credit score has gone up, you’re stuck with a high interest rate, or you’re simply looking to lower your monthly payment, refinancing your auto loan could be a smart move.
Many lenders let you check your rate with a soft credit pull—no risk to your credit score and no down payment required. It’s one of the easiest ways to potentially save hundreds (or even thousands) over the life of your loan.
The key is to compare multiple offers and do the math. The right refinance deal could mean more money in your pocket every month—without stretching your budget.
Frequently Asked Questions
Can I refinance my auto loan if I’m behind on payments?
Most lenders require you to be current on your auto loan before refinancing. If you’re behind on payments, it’s best to bring your account up-to-date first. Some lenders may offer hardship programs or alternative financing options if you’re struggling to make payments.
Can I refinance my auto loan more than once?
Yes, there’s no limit to how many times you can refinance a car loan, as long as you meet the lender’s requirements. However, refinancing multiple times in a short period could lower your credit score and result in paying more interest in the long run.
Will I need a co-signer to refinance my auto loan?
If your credit score is low or your income doesn’t meet the lender’s requirements, you may need a co-signer to qualify for refinancing. If your financial situation has improved since taking out the original loan, you may be able to refinance without a co-signer or even remove one from your existing loan.
Can I refinance if my car has high mileage?
Most lenders have mileage limits for refinancing, typically ranging from 100,000 to 150,000 miles. If your car exceeds the lender’s limit, refinancing may be more challenging, but some lenders specialize in high-mileage vehicle loans.
