Best Auto Refinance
Based on In-Depth Reviews

Best for Personal Service

As an auto loan refinance marketplace, Auto Approve helps you find refinance options for your auto loan. What makes this marketplace unique is their focus on offering a personal experience through a dedicated personal consultant. This helps to significantly cut down on the thing that you may dread about auto loan refinancing--having to complete a small mountain of paperwork. That alone is a major benefit to consumers.

The consultant will guide you through the loan process, offering personalized advice, options, and rates based on your circumstances. Once you decide on what lender option works for you, they’ll deliver your complete loan package, pay off your previous loan, and take care of all of the DMV paperwork for you.

Screenshot, Auto Approve website, February 22, 2023.

Additionally, Auto Approve offers loans for other motorized vehicles, including trucks, SUVs, RVs, motorcycles, and boats. A minimum of $2,000 monthly income is needed to apply, and your vehicle can’t be older than ten years and must have less than 100,000 of mileage to qualify for refinancing.

Resources

Auto Approve's website has an FAQ section and a calculator that allows people to estimate how much they could save by refinancing their auto loan. In addition, the company publishes an extensive blog of interest to people who are looking to refinance their car loans and even drivers in general. Articles discuss sucn topics as leasing versus buying a car, auto insurance, and how to manage credit.

Auto Approve is not a direct lender and works with dozens of lenders to find customers their best refinancing deal. The company doesn't provide a list of its partner lenders, but that's due to the fact that lenders are always under review and the list may grow or shrink frequently.

Best for Bad Credit

As the best option for customers with bad credit, Auto Credit Express connects you with dealerships nationwide that can tackle your bad credit, either through their own finance department or through an indirect lender. The application process takes around three minutes, asking personal information and performing a soft credit inquiry. Once Auto Credit prequalifies you, they send the information to partnered dealers around your area who perform a hard credit pull. 

 Screenshot of Autocreditexpress.com's highlights. August 19, 2019.

Depending on the company you’re matched with, the lender can ask for additional information that includes proof of income (at least $1,500 per month), proof of residency with a current utility bill, proof of employment history (at least three years), proof of a working landline or cellphone under your name, and six to eight references with their personal information (names, addresses, and phone numbers). If a lender approves your loan, they can also ask you to include a down payment of at least ten percent of the car’s selling price.   

Excellent Blog and Video Resources

Auto Credit Express offers excellent resources, ranging from basic tools like car loan estimators and payment calculators, to more in-depth material such as blog articles and videos. The company’s blog has over a thousand articles that deal with different subjects, including bad credit auto loans, bankruptcy, car buying, car maintenance, credit repair, and leasing. While some of these blog posts are simplistic and generic, most are comprehensive and offer specific advice. Additionally, the website has more than 100 videos that deal with various topics including credit terminology and how to get a bad credit auto loan. It also offers a monthly newsletter that includes articles, resources, products, and auto loan advice. 

Best Bank

Capital One is the best bank option for auto loans thanks to its low APR, versatile loan term options and loan amounts. Loans start as low as 4,000 and have no maximum, since the loan itself depends on the vehicle you choose. Refinance has different parameters, with $7,500 loan minimum and a $50,000 maximum. Term lengths range from 24 months to 74 months, a flexible range that gives customers the option to make the payment that best fits their needs. APRs vary between new and old cars, starting at 3.99% for new cars and 4.53% for older models. Additionally, although Capital One’s loan types are limited, offering only single, joint, and refinance loans, they don’t require a hard credit pull until you actually contact a dealer after pre-approval.

Easy Pre-approval Process

Capital One’s 5-step questionnaire, makes it easy to get your auto loan pre-approved, simply answer a few personal questions that include name, physical address, date of birth, and social security number.  If you qualify for pre-approval, you can then search for the car you want from their list of 1,042 participating dealers across the United States. The pre-approval terms only work for 30 days, so if you miss the deadline, you’ll have to apply again. 

Bear in mind that even if you qualify, it doesn’t mean that you’ll get financing. Additionally, Capital One does consider personal income when issuing auto loans, so if you don’t have at least $18,000 in annual income ($1,500 per month) you won’t qualify for their pre-approval process.

Excellent Resources and Customer Support

Capital One’s website has ample resources you can use to familiarize yourself with the car industry. Their auto learning center has a large list of articles that are updated monthly and are divided into categories that include managing your money and getting the best deals. Capital One also has an FAQ section with detailed answers and online tools that include a car payment calculator and a car finder that lets you look up cars near you from up to 42 makes.

Screenshot of CapitalOne's Learning Center. August 19, 2019.

Additionally, Capital One has the fastest and most helpful customer support out of the companies on our list. Their representatives were knowledgeable and answered all our questions promptly, and constantly asked if we had any questions. 

Drawbacks

One major drawback about Capital one is that they only offer new and used car loan options for individual and joint borrowers. This means that customers wanting to apply for other types of auto loans, like private party and lease buyouts, won’t be able to do so with Capital One. Additionally, since financing is exclusive to participating dealers, there is less room to shop around, especially if you live in states like Arizona and Louisiana, who only have two dealers. Also, there are 15 states where there aren’t any participating dealers at all.

We must also mention that Capital One was hacked on July 19, 2019, leading to the leak of sensitive information from approximately 100 million US customers and 6 million Canadian customers. Although Capital One quickly notified federal authorities and has since invested more in cybersecurity, it goes to show that even big banks like Capital One aren't completely safe from hacking. 

Best Aggregator

Caribou is an auto loan aggregator that partners with lenders with the goal of providing a one-stop shop for competitive auto refinancing loans. They allows users to check rates for free without impacting your credit score by submitting a soft credit inquiry, with no need to submit your social security number.

Caribou refinances all passenger vehicles, from cars to trucks to SUVs. The company usually present pre-qualified offers within minutes of you submitting your free quote request, and claims you could save more than a hundred dollars a month.

The company has a wide range of ways to contact them for live assistance, including toll-free numbers, e-mail, and a live chat option with which you can get answers to frequently asked questions through a bot or begin chatting with a representative within minutes of requesting it. This helps the company help you find the best auto refinance loan for your particular situation.

Caribou enjoy an A+ rating from the Better Business Bureau and is accredited by the institution. The company also  is a verified company and has received a high rating from Trustpilot, receiving a 4.2 out of a possible 5.

For those looking to compare rates from different loan companies in a fully online process, Caribou makes it as easy as possible with a good interface and dedicated live chat with quick response time. For auto refinance loans, it is hard to beat the ease and speed of Caribou.

Best Online Lender

Carvana stands out from the online auto loan crowd for selling vehicles themselves and offering premium cars at cheaper prices, all without extra or hidden fees. The company’s website has a catalogue of used vehicles you can browse, complete with detailed information about each vehicle, including sales price, VIN, equipment details, accident history, and safety rating. 

If you decide on a vehicle or if you want to check if you pre-qualify for an auto loan, you can fill in their auto loan form, which Carvana uses to do a soft credit inquiry. Once complete, Carvana will provide competitive rates that are valid for 45 days. Carvana’s pre-approval qualifications are straightforward, requiring you to be at least 18 years or older, have at least $10,000 of yearly income and have no active bankruptcies.

Third-Party Financing and No Payment Penalties

If you’re interested in one of Carvana’s cars but don’t want to take a loan with them, you have the option of financing the vehicle through a third-party lender. Carvana supports almost every bank or credit union, with the exception of Capital One, Road Loans, and Car Finance Capital. Unfortunately, the company only finances single-buyer loans, so customers with low credit scores or low incomes won’t be able to benefit from a co-signer. Also, Carvana doesn’t charge any prepayment penalties, so you can pay off your loan sooner without any worries.

Convenient Customer Experience

Carvana offers a convenient customer experience, since all of their used cars come with a 7-day money-back guarantee. This means that if you aren’t satisfied with your purchase for whatever reason, you can return it in seven days for a full refund. Additionally, all cars come with a 100-day, 14,189-mile limited warranty that covers the repair and assembly of most of your vehicle parts, with the exception of interior or exterior cosmetic imperfections, parts that wear and tear through time, and regular maintenance, such as oil and engine tune-ups.

 Screenshot from Carvana’s Pick Up section. August 19, 2019.

If you’re interested in a vehicle but live outside of Carvana’s service area, the company is willing to help you out. If you have to book a flight to get your vehicle, Carvana will subsidize up to $200 of your total flight cost. Also, if you want a vehicle delivered to a specific center (called “Vending Machines”), Carvana will arrange for white glove transportation, meaning the vehicle will receive the utmost care when being transported. Customers can also rely on Carvana’s customer support, available 7 days a week from 8 AM to 9 PM EST through chat and over the phone. 

Drawbacks

Carvana’s greatest downside is that their services are only available in 22 cities across the United States: Atlanta, Nashville, Charlotte, Houston, Austin, San Antonio, Frisco, Raleigh, Jacksonville, Tampa, Birmingham, Orlando, Gaithersburg, Tempe, Warrensville Heights, Philadelphia, Indianapolis, Bridgeville, Oak Brook, Kansas City, and Greensboro. This limits their availability and, although it’s great that Carvana does its best to extend their services to interested customers, it still might not be enough if you have limited income and can’t afford to travel. 

Finally, if you’ve made up your mind about a specific vehicle at a dealership, you won’t be able to use Carvana’s loan services, since their financing only applies to the vehicles they sell.

Best Captive Lender

GM Financial stands out from other competitors on this list by offering car loans for personal and business use. The company offers lease buyouts to purchase cars of GM’s make, which includes Chevrolet, Buick, GMC, and Cadillac. GM Financial also lets customers lease vehicles, and has a unique business lease program called The Right Lease®, which offers cheaper leasing costs for businesses and adds extras like reduced maintenance costs. 

You can get pre-approved for an auto loan by filling out their online form and stating the model you’re interested in and its year, make, and trim. After you fill in your physical address, GM Financial will map out all the dealers in your area with the selected car, and if you’re satisfied with the vehicle, you can submit your application for pre-approval. If GM Financial pre-approves you,  you can then go to the dealer to complete the purchase.  

Auto Loan Calculators and Helpful Resources

Among the captive dealers that we vetted, GM Financial had the best resources for customers, including a blog with articles that's updated monthly, and covers more than 15 loan-related topics. Additionally, the company has its own loan payment and affordability calculators, as well as instructive video clips.

Screenshot of GM Financial’s financial articles’ section. August 19, 2019.

The most useful tool is the dealer finder, which allows you to search for and locate all the certified dealers in your area. Other resources include a budgeting worksheet and a credit education brochure (both downloadable).

Drawbacks

Since GM Financial is a captive lender, it only offers auto loans for vehicles of the General Motors make.

However, GM Financial’s greatest drawback is that their website doesn’t show, offer or promote any specific data regarding their auto loans, leaving you to guess minimum APRs, loan amounts, loan terms, and income requisites. We called the company to ask about this issue and the service representative we spoke to stated that, “we can’t inform a set number due to the various rates and terms that our dealers offer.”

Since loan amounts and APRs depend on the GM dealer that you choose, you’ll have to do a little shopping around through nearby dealers to get the best rates.

Best Marketplace

LendingTree stands as one of the best auto loan marketplaces, offering a variety of loan types for new and used cars, Recreational vehicles (RV’s), and motorcycles, as well as auto loan refinancing and lease buyout agreements. 

Screenshot LendingTree's auto rate comparison widget. August 19, 2019.

Through LendingTree, customers will also find flexible loan amounts and APR rates thanks to their large list of partners (91). APR rates and loan amounts vary by lender, with loans starting as low as $1,000 and capping at $300,000, the highest in this list. Term lengths also vary by lender, although most offer from 12 months to 84 (seven years). Since LendingTree doesn’t offer rates directly, their services are completely free.  

Easy Qualification Process

To qualify for LendingTree’s auto loan services, customers need to answer up to twenty-six questions ranging from the type of loan they're looking for to personal information such as their name, physical address, and phone number. After completing the online questionnaire, LendingTree will share your personal information with their partners and match you with up to five lenders who will provide you with rate quotes by email, phone or text message. 

Excellent Resources and Customer Support

One of LendingTree’s best features is their helpful resources, which include an auto loan calculator, a car deal searcher, and auto lender review articles. The auto calculator helps you estimate payments, including title and registration fees, total sales taxes, and total interests, while the car deal search tool lets you explore deals on new cars in your area from up to 16 makes. Auto lender reviews are found on the resource section of their website and include reviews from various lenders, including some found on this list. Finally, LendingTree also offers useful articles to help customers get a better understanding about the car loan process.

Drawbacks

Although LendingTree is free to use, the marketplace has its share of drawbacks. First, unlike all other marketplaces on this list, to use their services (even their car deal searcher), you have to create an account with LendingTree. This might not be a problem for some customers, but it could be for many who would prefer to receive quotes without having to subscribe to a marketplace’s services. 

Also, it’s important to note that LendingTree is one of two marketplaces on this list that makes a hard credit inquiry when you request rate quotes.  Marketplaces usually use a soft credit pull to check your credit score and match you with partners, but LendingTree is an exception. The company doesn’t explain why they need to do a hard credit pull, although they state that the lenders you’re partnered with can also request a hard credit inquiry.

Best for Cursory Information

Customers looking to get the gist of what an auto loan entails, including information on financing, APR ranges, and no-credit car loans, can click on MyAutoloan’s articles and read them in less than three minutes. This is helpful for customers who want to know about a topic on-the-go, or who want a quick refresher about a certain subject.

Additionally, My Auto Loan’s resource center has other useful resources, including an auto loan finance glossary and guides for financing your car and improving your credit. The website also has calculators to estimate loan and payment amounts, as well as interest rates.

Screenshot of a helpful article from MyAutoloan.com. August 19, 2019.

5 Types of Auto Loans

My Auto Loan’s lending partners offer five types of auto loans: new and used auto loans, private party, refinance, and lease. MyAutoloan is the second marketplace on this list that does a hard credit pull on your credit score to match you with partners, so keep this in mind before applying. When you’re matched with partners, you’re provided with up to four offers, one less than most other marketplaces on this list.

The minimum loan amount My Auto Loan offers is $8,000, while the maximum depends on the lender. APR rates also depend on the lender, so the better your credit score, the lower your rates will be. My Auto Loan’s term lengths are among the lowest, with a minimum of 24 months and a maximum of 84 (7 years). However, to apply, you need a minimum income of $1,800 a month and you can’t have a current bankruptcy.

Best Credit Union for Auto Refinancing 

One thing that banks and non-traditional lenders have in common: they're for-profit companies that are under no obligation to put their customers' interests first. Credit unions, on the other hand, aren't subject to corporate earning mandates and other profitability standards. They're pledged to the well-being of their members and, as a result, can be a great resource for low-priced financial products of all kinds, from checking accounts to auto loans. When you seek to finance or refinance an auto loan through PenFed, you're required to become one of the credit union's members. And with membership, come privileges, including access to the more favorable loan terms credit unions often offer.

Broad Range of Loan Options

Some auto refinancing companies don't want to bother with loaning small amounts of money. But even auto owners who don't have a huge loan balance may want to refinance. At PenFed, car owners can finance as little as $500. That's not to say the credit union leaves fancy car drivers out in the cold: you can finance up to $100,000 through PenFed. You can also refinance 100% of your auto debt. In addition, the company offers flexible loan terms of up to 84 months, exceeding the maximum loan length of some other lenders. PenFed will refinance both new and used car loans and offers purchase financing for both vehicle categories.

Screenshot from penfed.org 2/22/21

Interest Rates and Qualification Requirements

PenFed provides a "rates as low" figure on its website. The loan you're offered by the credit union may not reflect that rate, of course, since many factors go into determining loan offers. But if you know the amount of loan you want to borrow, the loan term you prefer, and your credit score, you can use the loan calculators PenFed provides to get a ballpark estimate of your loan payment.

Like traditional banks, credit unions have to limit the risk involved in lending money. But because they may not be subject to the same strict return on investment requirements traditional banks must meet and, again, their focus is on serving their members, sometimes credit unions are a good choice for borrowers whose credit scores may not be something to write home about. PenFed doesn't list any minimum credit score qualifications on its website, but if you've had a hard time being approved for a loan, you may find it easier through PenFed.

Customer Experience and Reputation

PenFed's website is well-organized and it's easy to navigate to the auto refinancing information you need. The credit union offers an entirely digital loan application process, but doesn't speak to the length of time between application and approval on its website. As previously noted, you must be a PedFed member to apply for a loan. It's not quite as simple as filling out a form, though. You must also open a PenFed savings account. The minimum opening deposit is only $5, but this requirement may deter some borrowers.

PenFed receives an A+ rating from the Better Business Bureau. Trustpilot users give the credit union a rating of 3 out 5 stars, which is considered average by that organization's standards. PenFed appears to be diligent about responding to customer complaints and there are just a few of them registered with each rating organization. Many of these complaints concerned products other than auto refinancing, as well.

Best for Refinance

The second marketplace on our list, Refijet focuses on connecting customers with companies that provide refinance and lease buyout loans. The service includes refinance loans for autos, motorcycles, and RV’s. Refijet is free and doesn’t require a minimum credit score to apply, although it specializes in customers with a credit score of at least 600. 

To qualify for refinance, your vehicle must be 10 years old or newer and have less than 150,000 miles. Loan amounts range between $10,000 to $150,000, and APRs range between 2.99 to 17.99, depending on your situation. Their term lengths aren’t the shortest on this list, starting at 36 months (3 years) and averaging around 60 months (5 years), and can go as high as 60 months (8 years).  

Simple Online Application Process

Applying for a quote is easy, just fill out your personal information and submit the online form. The company estimates interest rates using a soft credit pull, so your credit score is not affected. Refijet will then analyze your information to offer you the best finance options from their refinance partners. If you select one of these offers, Refijet will fill in all the paperwork and submit it to the lender of your choosing. The process takes less than a few minutes, although the length of time it takes to get your loan will ultimately depend on the lender you choose.  

Screenshot of Refijet.com's application form. August 19, 2019.

Drawbacks

Although Refijet has a thorough online FAQ section on their website, they offer the least amount of customer resources on this list.  The only options available on their site are an auto loan calculator and a solution center that does nothing more than redirect you to their online form.