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Best auto loan refinance rates for May 2024

As of May 23, 2024
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Refinancing your auto loan allows you to replace your current loan with a new one in order to get more favorable terms and lower rates. They are available through a variety of lender types, so it is wise to shop around to consider which fits best for your needs. 

Bankrate’s best refinance auto loans were chosen based on each lender’s interest rates, customer experience, available terms and transparency. Consider the lender benefits and drawbacks outlined below to find the best option for you.

Pay special attention to eligibility requirements to make sure your current loan qualifies.

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REFINANCE

APR from
4.99- 14.99%
Term

36-84mo

Min credit

640

Apply on partner site

REFINANCE

APR from
4.67%
Term

12-96mo

Min credit

580

Apply on partner site

REFINANCE

APR from
4.99%
Term

24-84mo

Min credit

600

Apply on partner site

REFINANCE

APR from
5.24- 24.99%
Term

12-84mo

Min credit

620

Apply on partner site

REFINANCE

APR from
5.95- 28.55%
Term

24-84mo

Min credit

640

Apply on partner site

REFINANCE

APR from
5.29- 21.99%
Term

24-96mo

Min credit

580

Apply on partner site

REFINANCE

APR from
7.74- 15.94%
* with AutoPay
Term

24-84mo

Min credit

Not disclosed

Apply on partner site

REFINANCE

APR from
5.49- 18.79%
Term

24-96mo

Min credit

560

Apply on partner site

REFINANCE

APR from
6.83%
w/0.25% autopay discount
Term

24-72mo

Min credit

680

Apply on partner site

Compare auto loan refinance lenders in May 2024

When comparing auto loans, pay close attention to the available APR and loan term. The APR (annual percentage rate) is the interest rate at which you will repay your loan. The term is the amount of time that you agree to pay it back. These two aspects are especially important for a refinance loan to ensure you avoid the risk of becoming upside-down on your new loan.

Lender APR Term
LightStream 7.49%-15.44%* with AutoPay 24 to 84 months
Autopay Starting at 4.67% 12 to 96 months
Caribou 5.95%-28.55% Not specified
Upstart 9.32%-29.99% 24 to 84 months
RefiJet 5.29%-21.99% 24 to 96 months
LendingClub 4.99%-24.99% 24 to 84 months

Loan details presented are current as of April 10, 2024. Check the lenders’ websites for more current information. The auto loan lenders listed here are selected based on factors such as APR, loan amounts, fees, credit requirements and more.

A closer look at our top auto loan refinance loan lenders

Not all refinance auto lenders are created equal. Some boast an online-only experience, while others are geared for in-person support. Many lenders also have specific eligibility requirements around vehicle age or loan amount. Consider the ins and outs of our top auto loan refinance lenders. 

Best for fast funding

Min. credit score:
Not disclosed
Fixed APR From:
7.74% –15.94%
Loan amount:
$5,000– $100,000
Term lengths:
2 to 7 years
Min. annual income:
Not disclosed
Overview: LightStream offers an easy-to-navigate online interface for unsecured loans. You can apply for repayment terms from 24 to 84 months and a high maximum refinancing amount of $100,000.
 

Why LightStream is the best for fast funding: If you are in a precarious financial position and need funding right away, LightStream is a great option. With same-day funding available and no additional origination fees, LightStream offers a quick online application process and a higher maximum loan amount than competitors. 

Bankrate 2024 Award winner for best auto loan online lender

Min. credit score:
580
Fixed APR From:
4.67%
Loan amount:
$8,000– $150,000
Term lengths:
1 to 8 years
Min. annual income:
Not disclosed
Overview: Autopay presents borrowers with a range of loans directly from its network. The process is completely online and streamlined, empowering drivers to walk away with a new loan as soon as one business day.  
 

Why Autopay won for best online lender: The online loan marketplace allows borrowers to seamlessly compare loan options side by side. This can all be done without a hard credit pull, keeping your score intact — a major perk. 

Best online experience

Min. credit score:
640
Fixed APR From:
5.95% –28.55%
Loan amount:
$10,000– $125,000
Term lengths:
2 to 7 years
Min. annual income:
Not disclosed
Overview: Through a number of lender partners, Caribou considers a driver's credit history to match them with a potential lender. The process can be done completely online and simply requires vehicle information.
 
Why Caribou is the best for shopping online: Caribou’s app and online experience make it very easy to compare different lender rates side by side. Even with its online presence Caribou encourages drivers to speak with its team members who can assist with specific questions seven days a week via phone, email or appointment.

Bankrate 2024 Award winner for best for auto refinance

Min. credit score:
600
Fixed APR From:
4.99% –24.99%
Loan amount:
$4,000-$55,000
Term lengths:
3 to 5 years
Min. annual income:
Not disclosed

Overview: LendingClub boasts an easy application process that can help borrowers secure a lower rate. 

Why LendingClub won for best auto refinance: The lender not only has competitive rates compared to other lenders but also offers the option to prequalify, which can help you lock in your rates online. 

What car refinancing is and how it works

Refinancing a car loan is essentially just taking out a new car loan — so the steps for applying are mostly the same. You'll need your driver's license, Social Security number and proof of income and insurance, as well as details about your car. If approved, you'll use the funds from your new loan to pay off your old car loan, then begin making monthly payments with your new interest rate and terms.

When should you refinance your car loan?

Refinancing your car loan comes down to saving you money. If you are struggling to afford your vehicle payments or think you could receive more favorable terms, it’s a good idea to consider refinancing your current loan. Here are the main scenarios where refinancing is the right choice.

  1. Your credit has improved: Competitive rates are reserved for drivers with very good or excellent credit — scores of 740 and above. So, if your credit score has risen since you signed off on your initial loan agreement, refinancing could save you money on your monthly payments.
  2. You financed through a dealership: Dealer financing likely did not present you with the best available rates and terms. You might be able to get a better deal if you shop elsewhere and refinance your initial vehicle loan.
  3. You can’t afford your monthly payments: If you are struggling to make your monthly vehicle payments and are at risk of losing your vehicle, it is a good idea to refinance your loan. This way you can extend your terms to lower your monthly costs. Keep in mind that you will have to pay more interest over the life of the loan. 
  4. You have positive equity: If you have positive equity in your vehicle, or the value of your vehicle is worth more than you owe, the cash-out refinance process could present you with some extra money and improved loan terms. 
  5. You have issues with your current lender: If you are struggling with your lender, refinancing may help avoid future problems. But look out if there are prepayment penalties enforced, which could outweigh your savings.
  6. Interest rates dropped: Even if there hasn’t been a boost in your credit, if interest rates have changed with the prime rate then you may be able to secure improved rates — especially if a lot of time has passed.  

Pros and cons of refinancing an auto loan

The choice to refinance your auto loan requires some consideration on the state of your finances and vehicle. Weigh the benefits and drawbacks of refinancing before moving forward with it. 

Green circle with a checkmark inside

Pros

  • Potential to decrease monthly cost.
  • Ability to sign off on more competitive interest rates.
  • Likelihood of paying off auto loan sooner.
  • Accessing quick cash.
Red circle with an X inside

Cons

  • Potentially high interest rates.
  • Additional fees incurred.
  • Risk of becoming upside-down on loan.

What to know before applying for a refinance auto loan

As with any loan, it is best to shop around at different lenders before making your final decision. Each lender has its own methodology when determining your interest rates and terms — so compare to see which best fits your needs. 

While every lender measures risk differently, interest rates depend greatly on your credit. Do your homework ahead of time to get a clear picture of what lenders are looking for and the terms you will be offered based on your credit history. This research can help you avoid common refinancing mistakes.

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Bankrate tip

When comparing lenders pay close attention to any prepayment penalties that you may incur. Factor that in when calculating if refinancing will save money.

FAQs about auto loan refinance 

How we choose our best auto loan refinance lenders

Bankrate's trusted auto loans industry expertise

57 years

in business

31

lenders reviewed

16

loan features weighed

496

data points collected

The Bankrate team assessed more than 30 auto refinance lenders to find the best. Bankrate considered 16 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.