Best Auto Refinance Rates in August 2025
Get the Lowest Auto Refinance Rates at Way.com!
Save up to $1850 per Year
APR as low as 5.74%
View your pre-qualified rates* in under a minute!
Compare Auto Refinance Rates for 2025
Here is a list of lenders that you can consider if you are planning to refinance your auto loan this year. However, make a note that APRs can vary based on the loan term and individual creditworthiness. Therefore, the best auto loan refinance rates can be personalized.
| Lender | APR (Range) | Loan Amount | Credit Score |
|---|---|---|---|
| LightStream | 7.19-15.44% | $5,000-$100,000 | 660 |
| Gravity Lending | 4.99-14.99% | $15,000-$150,000 | 640 |
| Auto Approve | 5.49-24.55% | $10,000-$150,000 | 600 |
| Caribou | 5.48-28.55% | $5,000-$125,000 | 600 |
| Lending Club | 4.99-24.99% | $4,000-$55,000 | 300 |
| MyAutoLoan | 4.99% | $5,000-$100,000 | 600 |
| RefiJet | From 5.29% | $5,000-$150,000 | 500 |
| Consumers Credit Union | From 4.99% | $250-$500,000 | 620 |
| iLending | 5.49-19.24% | $2,500-$150,000 | 560 |
| OpenRoad | From 5.39% | $7,500-$100,000 | 460 |
| Autopay | 4.85% | $2,500-$100,000 | 580 |
| PenFed Credit Union | From 4.89% | $500-$150,000 | Did not disclose |
| Navy Federal Credit Union | 4.09% | From $250 | Did not disclose |
The rates are up to date as of October 26, 2023.
Current Auto Refinance Rates Based on Credit Score
The best auto refinance rates are a result of various factors, including credit score. The lowest auto refinance rates are found with excellent credit scores at 5.08%. The highest rates are for used cars, ranging between 7% and 22%.
| FICO score | Average interest rate for new car loans | Average interest rate for used car loans |
|---|---|---|
| 781 to 850 | 5.08% | 7.41% |
| 661 to 780 | 6.70% | 9.63% |
| 601 to 660 | 9.73% | 14.07% |
| 501 to 600 | 13.00% | 18.95% |
| 300 to 500 | 15.43% | 21.55% |
The rates are up to date as of October 19, 2023.
What are the new car refinance rates in 2025?
The table below shows the APR, loan term, and loan amount if the vehicle's model year is 2021 or newer.
| APR | Loan term | Loan amount |
|---|---|---|
| 5.74% | 36 months | $500 - $150000 |
| 5.99% | 48 months | $7500 - $150000 |
| 6.04% | 60 months | $10000 - $150000 |
| 6.34% | 72 months | $15000 - $150000 |
| 7.54% | 84 months | $20000 - $150000 |
The rates are up to date as of October 26, 2023.
What are the used car refinance rates in 2025?
The table below shows the APR, loan term, and a loan amount of pre-owned vehicles with over 7501 miles.
| APR | Loan term | Loan amount |
|---|---|---|
| 6.54% | 36 months | $500-$150000 |
| 6.84% | 48 months | $7500-$150000 |
| 6.94% | 60 months | $10000-$150000 |
| 7.04% | 72 months | $15000-$150000 |
The rates are up to date as of October 26, 2023.
Brands that offers the Best Auto Refinance Rates
Here are some of the companies that will offer you the best auto loan refinance rates.
LightStream: Fast Funding
Pros:
- Known for fast funding
- Maximum refinancing amount of $100,000
- Convenient online platform with mobile application.
Cons:
- Requires good to excellent credit score for the lowest auto refinance rates
- APR can be high based on creditworthiness.
Our Verdict
LightStream provides a simple platform for applying for and managing unsecured loans online. A maximum refinancing amount of $100,000 is available, and payback terms can range from 24 to 84 months. LightStream is the right option if you are looking to refinance your vehicle at a high amount quickly.
Gravity Lending: No Fees
Pros:
- No fees
- Known for adding or removing co-borrowers
- Prequalification available.
Cons:
- It takes a long time to receive the funds.
Our Verdict
Gravity Lending is the best bet for obtaining quick quotes online. It also offers online applications. If you have a fair credit score, then Gravity Lending is a good choice, for it offers no fees.
Auto Approve: Loan Comparison Tool
Pros:
- Completely online
- Online application available
- Joint applications are possible.
Cons:
- It is not suitable for those with poor credit scores.
Our Verdict
Auto Approve gives you their undivided attention until they find the optimal solution for you. They encourage lending institutions to meet your specific requirements by creating a competitive environment. They will do the paperwork for you.
Caribou: Fair Credit Loan Focus
Pros:
- Completely online
- Good customer service
- Allows comparison.
Cons:
- Needs vehicle information to make use of comparison tools.
Our Verdict
Caribou uses a driver's credit history to choose a suitable lender from its network. All you need is some basic information on the car you're working on, and you can do it all in one place online. They offer you prequalification, and their customer support is always available for you. Drivers can shop for the best loan terms and interest rates directly online.
Lending Club: Best for Poor Credit Score
Pros:
- Lower minimum credit score requirement compared to many lenders.
Cons:
- Lower maximum loan amount compared to others
- APR can be high depending on creditworthiness.
Our Verdict
Lending Club is a great choice for those with credit scores as low as 300. However, the loan amount they offer is limited and may not suffice the amount you might require.
MyAutoLoan: 24-hour Funding
Pros:
- Known for quick funding
- Bankruptcy not a primary reason for rejection
- Check rates without credit impact.
Cons:
- It is not available in Hawaii or Alaska
- Contact information is not available on their website.
Our Verdict
If you are in a hurry to obtain an auto refinance loan, then MyAutoLoan is a considerable choice. They are known for offering funds in a day and don't count bankruptcy as a reason for rejecting the application.
RefiJet: Dedicated Customer Support
Pros:
- Bad credit scores got a chance
- Joint loans result in lower monthly payments.
Cons:
- Requires a minimum of $5000 on your loan to refinance.
Our Verdict
Although RefiJet is not a direct lender, it does help borrowers find better loan conditions and interest rates. Funding is made accessible in as little as one business day, with rates beginning at 5.29 percent APR. It is a good option for joint applicants as it offers lower monthly payments.
Consumers Credit Union: For Small Auto Loans
Pros:
- Known for fast funding
- Maximum refinancing amount of $100,000
- Convenient online platform with mobile application.
Cons:
- Requires credit union membership.
Our Verdict
If you are a credit union member, then you can refinance with Consumer Credit Unions for loans as low as $250. Though the rates are good for smaller car loans, you can apply for car loans up to $500,000 with the Consumer Credit Union.
iLending: Poor Credit Borrower Specialization
Pros:
- Refinances boats, motorcycles, RVs, ATVs
- Can qualify with bad credit
- Possible to refinance an upside-down loan
- Customer service is available throughout the week.
Cons:
- There is no information on mileage restriction.
Our Verdict
Since iLending partners with different partner lenders there are options to refinance not just your car but also your boats or RVs. There are options to qualify on upside-down loans with a minimum credit score of 560.
Open Road Lending: Good for refinancing with bad credit
Pros:
- The minimum credit score is only 460
- Apt for upside-down loans.
Cons:
- You cannot apply if you are self-employed
- All documents are required to be faxed
- Cars should be 8 years or newer than that.
Our Verdict
Since it partners with many lenders, there are options to refinance even if you have a credit score below 500. However, Open Road Lending is not the right option if you are self-employed or if you own a car that is older than 8 years.
Autopay: Best Cash-Out Refinancing
Pros:
- Up to $12,000 on a cashout refinance
- Good to go with fair credit.
Cons:
- Customer service is unavailable on Sundays
- There is a fee involved, and it will vary for each applicant.
Our Verdict
Autopay offers several different loans from its network to potential borrowers. Drivers can get a new loan and cash out refinances. The entire procedure takes place online and is automated.
Penfed Credit Union
Pros:
- Debt Protection available
- Checks rates without damaging your credit score.
Cons:
- Requires credit union membership.
- Vehicle must be less than 12,500 miles.
Our Verdict
Once you become a PenFed member, you can get auto loans at lower rates. They offer debt protection and can cancel your loan balance without any penalties.
Navy Federal Credit Union: Best for military members
Pros:
- Term length as long as 96 months
- Discounts are available for active and retired military members
- No waiting period
- $200 bonus for refinancing loan from another lender.
Cons:
- The discount is applicable only to members
- Checking rates affects the credit score.
Our Verdict
If you are a retired or active military member, Navy Federal Credit Union offers you the best rates at long repayment terms.
How to refinance an auto loan with Way
Check your rates
Way helps you check the rates without any impact on your credit score.
Compare rates
Compare quotes from multiple lenders available with Way and choose the one that fits your budget.
Prequalify for Refinancing
Way's car financing tools calculate and provide the estimated monthly loan payment in under a minute.
Refinance your car
Secure a favorable refinancing rate and refinance.
How does refinancing a car loan work?
Applying for a vehicle loan refinance is similar to applying for a new auto loan. Your car's make, model, year, VIN, insurance information, and Social Security number will all be required. If your application for a new auto loan is successful, you can use the proceeds to pay off your existing loan and switch to the new loan's more favorable monthly payments and interest rate.
The process of refinancing your auto loan results in the creation of a brand-new loan to cover the cost of your vehicle. The steps are similar to those you would take to secure your first loan. You will apply for a new loan, and if approved, you will pay off the old one with the new one and then start making payments on the new loan.
What factors should you look for when refinancing an auto loan?
Before refinancing an auto loan, you should consider the following factors.
Interest Rate
One of the factors which influence your loan amount is the interest rate. APR is your interest rate, along with other loan costs.
The table below shows the variations in the interest paid with variations in APR. The changes are calculated using our loan calculator.
Loan Term
Depending on your financial position, you may have some say in the loan repayment period. While certain lenders may provide shorter or longer terms, the typical range for loan repayment is between 12 and 84 months.
If you extend the length of your loan, your monthly payment will decrease. But even if interest rates stay the same, the total interest expense will be higher. Longer loan durations typically result in a higher interest rate from the lending institution.
Loan fees and penalties
Fees and penalties can make a loan much more expensive, even with the best car refinance rates. Lenders vary greatly in their fees, with some imposing steep origination charges added to the loan's principal and others charging extra for missed or late payments.
Loan fees and penalties like this are typically buried in the small print. Before signing anything, make sure you've read everything thoroughly.
Discounts
Discounts may be available from some loan providers, lowering your overall interest rate. Many lenders provide a considerable reduction when you join auto-pay, typically between 0.25 and 0.5 percent. Banks and other large financial organizations often offer incentives for customers who sign up for multiple products, such as savings and investing accounts.
Can You Refinance an Auto Loan with Bad Credit?
A bad credit score is sometimes inevitable when it comes to applying for auto refinance loans. Your auto loan refinance rates may be higher due to your credit score.
However, it is not impossible to refinance an auto loan with bad credit. However, securing the lowest auto refinance rates can be tricky.
This is because lenders consider your credit score when determining auto loan refinance rates. So having bad credit usually means higher interest rates. But you can always make use of lenders specializing in bad credit scores.
The research, comparison, and refinance strategies shouldn't be forgotten in this case either. Find lenders that offer rates in such situations and make a comparison among them to get the best rates.
Expert Tip
Refinancing with bad credit might not be difficult if you have a co-signer on your refinance loan.
A co-signer or a co-borrower is a second person on your refinance loan. It'll be apt to choose a person with a good credit score. This will reduce the lender's risk as there is another person on the loan who is equally responsible for making the payments.
When Should I Refinance My Car?
- Your credit score has improved – A better score may help you get lower interest rates.
- You didn't get the best dealer for financing – Refinancing could get you better terms.
- You're struggling with monthly payments – Extending the loan term can lower your payments.
- Interest rates have dropped – Even a small drop in auto refinance rates can save you money.
- You want to pay less overall – Shortening the loan term means higher monthly payments but less interest in the long run.
- You have positive equity – If your car's value is higher than your loan balance you might qualify for the lowest auto refinance rates.
How to refinance an auto loan
Follow the steps mentioned below to learn how to refinance an auto loan.
Have a look at your current loan
Check the original auto loan agreement for expenses associated with prepayment, which are uncommon but still worth checking out. Contact your lender's customer service department if you can't locate your contract.
You should also check the market value of your car now. If the value of your car is less than what you owe on the loan, you are "upside down" on the loan, and refinancing may be more challenging. Some banks, however, are willing to refinance for more than a vehicle is worth.
Check your credit score
To see where you stand financially, you can get a free copy of your credit report (which details your credit history) and credit score. Your chances of successfully refinancing your automobile loan increase if you have made timely payments for the past six to twelve months.
Lenders will look favorably on your credit report if it shows no signs of late payments, delinquencies, or collections and is trending upward.
Gather documents for your application
Some of the primary documents you require for auto-refinancing are:
- Driver's license
- Vehicle registration
- Insurance proof
- Vehicle identification number, or VIN
- Social Security number
- Loan payoff statement
- Pay stubs
Determine your car's worth
Find your car's value and refinance it only if you feel it is worth it. If you owe more than the car's worth, drop the idea of refinancing, as it will bring a great loss of money.
Shop around
The pre-qualification process offered by certain lenders involves a "soft credit check," which does not negatively impact a borrower's credit score but provides access to rate estimates. Pre-qualification can help you determine if you are eligible for a reduced interest rate and doesn't cost you anything.
It's a good idea to get pre-approved by multiple lenders to compare rates and terms using a car refinancing calculator. You can use this to get an idea of how much money you could save each month on your car payment and cut down your list of potential employers.
Apply to refinance
Contact multiple auto loan refinancing firms if you pursue this option. After pre-qualification, final approval, and comparing firm loan offers are the final steps, which only provide rate estimations.
If you need to apply for more than one loan, do so within 14 days of each other. There will only be a slight loss of roughly five points on your credit score because similar requests in this period are normally clubbed together and regarded as one.
To properly compare loans, you must consider the loan's tenure. You're free to keep payments the same, but certain loan providers may offer you these alternatives:
How We Chose the Best Auto Refinance Lenders
When choosing a lender that best suits your needs, consider the following factors.
Approval requirements
Check whether the lender has many approval requirements. If there is complicated paperwork, you can look for other options. In other words, your lender must be accessible.
Rates and terms of current and new loans
Look at your current loan and check whether lenders offer more competitive rates and loan terms. If the repayment period and the monthly payments you need to make are something you can afford, you can go on with it.
Repayment options
It will be difficult to make timely payments if the lender does not provide a sufficient repayment period for paying back your loan. This can affect your credit score. If you are looking for a smaller repayment period with low interest, choose the lender that provides what you need.
Alternatives to Refinancing Your Auto Loan
It is the savings that you make that matter when it comes to refinancing auto loans. So, if you are not up for refinancing your car loan or not getting the best auto loan refinance rates, then here are some alternatives to refinancing.
- Make extra payments – Paying a little more each month can reduce interest and shorten your loan term.
- Request a loan modification – Talk to your lender about adjusting your payment plan without refinancing.
- Negotiate a lower interest rate – If your credit has improved, your lender might lower your rate.
- Sell the car or try leasing – Use the proceeds to pay off your loan and switch to a more affordable vehicle.
- Trade in your car – Consider trading your vehicle for one with lower monthly payments.
- Use a co-signer – If you qualify for better terms with someone else's credit, this can improve your loan terms without a full refinance.
Frequently Asked Questions
Is my car eligible for refinance?
The eligibility requirement for car refinance differs based on lenders. However, most lenders require you to have a distance of fewer than 15,000 miles on the odometer and the age of the car less than 10 years. Therefore, your eligibility is dependent on what your lender demands, which includes criteria like credit score, mileage, age, and car model.
Is it a good idea to refinance a car loan?
Refinancing is a good option for lower car payments and if you are getting lower interest rates than your current loan.
What does refinancing a car mean?
Refinancing your auto loan is a good option if you prefer to get more competitive loan terms and auto refinance rates. It is made possible by trading your old loan with a new one with better terms and rates.
Are auto refinance rates higher than purchase?
No two loans must be applied within 6 months. You should apply for refinancing after six months of your initial loan. This gives just the right time for the credit scores to get back in shape.
Does refinancing hurt your credit?
Your credit rating may take a short-term hit due to the refinancing process. A hard inquiry, such as when applying for a loan, will cause a temporary reduction in your credit score. Approval of a new loan account will shorten the average age of your credit history, which might have a negative impact on your score.
Should I refinance if I'm far along on my original loan's repayment?
Refinancing is most beneficial when done early in the life of a loan. Initially, your loan's interest rate will be higher than it will be, but later on, you'll have a greater opportunity to save money. Remember that refinancing is typically not an option in the first six months.
Does refinance start your auto loan over?
In some ways, refinancing your car loan is like starting a new loan, but in other ways, it's not. To reduce the cost of your regular payments, you have agreed to accept new, more affordable interest rates. It's not a fresh start, but it will simplify paying off the loan.
There is also no carryover of the number of payments made toward the old loan into the new one. Even though you've already paid off the original loan, the new one will not reflect the previous payments.
Do I need cash to refinance?
Loan providers may require borrowers with bad credit to make a larger down payment. Having extra money to use for the refinancing process can help you save on the car loan. Equity, the gap between what you owe and what the car is worth, is usually necessary even if a down payment is not.
Do you find Auto refinance complex? Here is the ultimate Auto Refinance FAQ Guide with answers to all your questions!