When you refinance your auto loan, you are taking out a new one with a lower interest rate, a smaller monthly payment, and a lower total amount paid for the car. If you are searching for the best auto-loan refinance lender, then look no further, because in this write-up, I will provide a list of only the best auto-loan refinance lenders with competitive rates.
The best auto-refinance companies offer reliable service, dependable assistance, and openness to customers who are searching for competitive rates from different lenders, which include credit unions, banks, and financial lenders. Your interest rate will be determined by factors such as the amount of your current loan, your credit score, and your annual income.
7 Best Auto Loan Refinance Lenders
Below are some of the best auto-refinance companies that offer competitive rates and other perks.
RateGenius has over 200 lenders in its auto-refinance marketplace, which makes it very easy to shop around for the best rate. This platform is ideal for people with a high credit score of 660 or higher. Just like other auto refinance companies, the better credit score you have, the better rates you are offered.
However, there are other options for people with low credit scores. In addition, this lender permits co-borrowers, which can increase your chances of getting approved for refinancing if the co-borrower has a strong credit score.
PenFed Credit Union is one of the best auto loan refinance lenders because it does not charge origination fees or document fees and has a competitive annual percentage. Pentagon Federal Credit Union is a direct lender that has no additional fees added to its auto refinance loans.
Several auto-refinance marketplaces impose origination fees and document fees, and then the company handles the loan payoff. With PenFed, you are in charge of this task along with the changes to the vehicle title.
However, the lack of fees can help you reduce your total loan repayment. You can also check the loan offers on the lender’s website without having any negative impact on your credit score. PenFed enables borrowers to refinance their auto loans with up to $150,000 of their currency loan balance. However, to be eligible, the vehicle must not exceed more than 125,000 miles.
MyAutoloan is ideal for people who have a minimum credit score of 575 to get the best offers and low rates. The borrowers are also required to have a monthly income of at least $1,800.
This lender has a calculator on its website to give you an idea of what your rate would look like, and you can make use of this tool without providing any personal details.
When the customer fills out the loan form, they will receive up to four offers, which are guaranteed as long as the personal information they provide is accurate.
These terms and rates aren’t just a rough idea; they are the real prequalified offers. MyAutoloan also offers lease buyouts and cash-out refinances. The eligible borrowers can get a payment deferral of up to 90 days.
iLending is one of the few auto-refinance companies that handles making the essential title changes to your vehicle and paying your old loan. Most companies charge an origination fee or document fee for auto refinance loans.
However, this lender doesn’t. It stands out for having several services, such as paying off your old loan and changing the title on your vehicle. If your refinance loan is with a credit union and there is a requirement for the membership fee, then this is also covered.
iLending’s APR is very competitive, and it only requires a soft credit inquiry to be able to get potential loan offers. After submitting your information, you will be contacted by a loan consultant to discuss your needs. You might be able to skip 90 days of loan payments based on your financial needs.
5. OpenRoad Lending
OpenRoad Lending is one of the best auto-refinance options for borrowers with a low credit score. This is because it links customers to lenders that accept low credit scores. OpenRoad Lending works with customers who have low credit scores.
This lender’s minimum credit score requirement starts at 500. There are also agents available for people who have questions or need help throughout the auto-refinance process. OpenRoad Lending also accepts cars that are 15 years old, which is more flexible than the industry 10-year average.
Many lenders’ minimum mileage is 150,000; however, OpenRoad accepts autos with up to 160,000 miles. It also allows co-borrowers, as long as the person signing has a good credit score. This can also enhance your chances of getting low rates.
LightStream is one of the best auto-refinance programs for any type of vehicle because there are no restrictions on the model of the car, make, mileage, or year. It is among the few lenders with no restrictions on its auto-refinance loans.
There are also no limitations in terms of the vehicle make, model, age, or mileage, so customers can refinance both old, new, and classic cars. This company also works with other vehicles, such as motorcycles and ATVs.
LightStream offers unsecured loans, which means that you can keep your vehicle title, unlike when you are buying a secured loan.
The annual percentage rates for this lending company are also higher when compared to other companies. To get an estimate of your interest rate, you can use the rate calculator on the website.
LendingTree is among the best picks due to its varied lender network. Its large lender network covers a wide array of credit scores and auto refinance loan needs. It also offers a network of 40 lenders across the United States, which includes credit unions, banks, and other financial institutions.
After applying, there will be a soft credit inquiry, which won’t affect your credit score. On the website, you can find important lender information such as loan terms, minimum credit score required, and loan amounts.
However, some other information, such as closing costs, is not available. In addition, not all lenders are listed. Make sure that you check all this information before starting the loan application process.
The auto-refinance companies listed above are some of the best in the industry, and some of these companies offer perks above the industry standard.