Best Auto Loan Refinance Rates in March 2025

Swap your current car loan for an auto refinance loan with a lower rate

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Southeast Financial Credit Union: Best for cheap auto refinancing rates

3.50%

Up to $100,000

12 to 84 months

600

Pros
  • Offers some of the lowest auto refinance rates on the market
  • Can apply to skip a payment if you need to
  • In addition to cars, also refinances ATVs, RVs, boats, motorcycles and jet skis
Cons
  • Loans require credit union membership
  • All brick-and-mortar branches are located in Tennessee
  • Can’t check rates without hurting credit

Why we like it

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What to know

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How to qualify

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Autopay: Best for cash-out refinancing

4.85%

$2,500-$150,000

24 to 84 months

580

Pros
  • Can pocket as much as $12,000 on a cash-out refi
  • Accepts fair credit
  • Check rates without hurting your credit score
  • Can reach customer service via text
Cons
  • Customer service is not available on Sundays
  • Fees will depend on what lender Autopay links you with

Why we like it

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What to know

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How to qualify

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PenFed Credit Union: Best for debt protection

4.89%

Up to $150,000

36 to 84 months

Not specified

Pros
  • Offers debt protection (for a small fee)
  • Can borrow up to 25% more than what is on your current loan balance for cash in your pocket
  • Can check rates without hurting credit
Cons
  • Credit union membership required (but anyone can join)
  • Sends the check to you (in your old lender’s name) instead of paying off your current lender directly
  • Car must have less than 125,000 miles (other lenders allow 150,000)

Why we like it

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What to know

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How to qualify

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Consumers Credit Union: Best for refinancing small auto loans

4.99%

$250-$500,000

12 to 84 months

620

Pros
  • Could be a great option if you only have a couple of thousand left on your current auto loan
  • Refinances big car loans up to $500,000
  • 0.25% rate discount for autopay
Cons
  • Required credit union membership (but anyone can join)
  • Doesn’t give details about its vehicle restrictions

Why we like it

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What to know

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How to qualify

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myAutoLoan: Best for fast funding

4.99%

Starting at $5,000

24 to 72 months

600

Pros
  • Funding within 24 hours
  • Can check rates without impacting credit
  • May still qualify with past bankruptcies
Cons
  • Not available in Alaska or Hawaii
  • Maximum car mileage of 125,000 (some allow 150,000)
  • No direct phone number or email address provided on website

Why we like it

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What to know

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How to qualify

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RefiJet: Best for refinancing with a lower income

5.29%

$5,000-$150,000

24 to 96 months

500

Pros
  • Only requires you to make $1,900 a month ($2,200 a month for a joint loan)
  • Can still qualify with bad credit
  • Nearly perfect customer satisfaction score from LendingTree users
  • Handles the title transfer for you
Cons
  • Must have at least $5,000 left on your loan to refinance
  • No live chat for customer service (but you can text)

Why we like it

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What to know

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How to qualify

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Auto Approve: Best for an easy experience

5.49%

$10,000-$150,000

12 to 96 months

600

Pros
  • Handles the car title with the DMV and pays off your old lender for you
  • Don’t need to give out your Social Security number to check rates
  • Finances cars and trucks up to 20 model years old (10 is more common)
Cons
  • Must have at least $10,000 to refinance (more than many other lenders)
  • Customer service isn’t available on weekends

Why we like it

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What to know

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How to qualify

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iLending: Best for special vehicle refinancing

5.49%

$5,000-$150,000

12 to 96 months

560

Pros
  • In addition to cars, also refinances boats, motorcycles, RVs and ATVs
  • Can still qualify with bad credit
  • Might be able to refinance an upside-down car loan
  • Customer service is available seven days a week, and live chat is available
Cons
  • Doesn’t provide information about vehicle restrictions such as age and mileage

Why we like it

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What to know

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How to qualify

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OpenRoad Lending : Best for refinancing with bad credit

5.49%

$7,500-$100,000

36 to 84 months

460

Pros
  • Can still qualify with a score as low as 460
  • Provides free credit scores
  • Refinances upside-down car loans
Cons
  • Car needs to be eight model years or newer (10 model years is more common)
  • Must fax your paperwork (many lenders have an online portal)
  • Can’t be self-employed

Why we like it

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What to know

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How to qualify

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How auto refinancing works

Auto refinancing is the act of replacing your current auto loan with a new one. Here’s how to do it.

Review your current auto loan

Find your auto loan payoff amount and current interest rate.

Decide if refinancing is right for you

Use an auto refinance calculator to see if refinancing will save you money or lower your car payment.

Apply for an auto refinance loan

Compare offers from several auto refinance lenders and apply to the one that’s best for you.

Start paying your new lender

Accept your loan and start paying your new lender. Most refinance lenders will pay off your old loan and handle the paperwork, but it’s best to ask.

Auto refinance rates

Auto refinance rates from the lenders on this page start as low as 3.50%. But it’s hard to tell what rates you’ll get without prequalifying or applying with a lender.

When you get an auto refinance loan, you replace your current loan with a new one. To make sure you land the best rates, be sure to shop around with various lenders and compare offers.

During this process, you’ll need to pay close attention to interest rates, fees, repayment terms and lender requirements. As with auto financing loans, the lowest rates will go to those with the highest credit scores and best repayment histories.

Auto refinance rates by credit score

We’ve compiled the average auto loan refinance rates for LendingTree marketplace users so you can estimate the rates you’ll likely qualify for based on your credit score.

Credit tierAverage APR
Excellent credit (720+)7.16%
Good credit (680 - 719)8.72%
Fair credit (640 - 679)9.73%
Poor credit (639 or less)12.10%

Source: LendingTree user data from Q4 of 2024.

Expert insights on auto refinancing in 2025

Matt Schulz LendingTree chief consumer finance analyst headshot

Matt Schulz

Chief consumer finance analyst

I think we’ll see people wait to refinance. There’s reason to be hopeful that rates will fall given the cuts we saw in 2024. If more cuts materialize, we could see a spike in refinancing. However, that is far from certain.

If you’re looking to refinance anytime soon, Schulz does not think the first half of 2025 will be ideal since the Fed is stepping back from rate cuts. The second half of 2025 is even less clear, Schulz says, as we wait to see what effect the new administration’s policies will have on the economy.

How to refinance an auto loan with LendingTree

Check your credit score

Get your free credit score with LendingTree Spring. We’ll need it to personalize your refinance offers.

Compare your offers

Tap into our exclusive lender network (America’s largest) and get multiple offers with just one form.

Refinance your car

When you’re ready to apply, we’ll be there to help. Once approved, the lender will give you instructions on how to complete your refinance.

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Can you refinance a car with bad credit?

You may be able to refinance a car loan with bad credit, but you’ll have to apply with lenders that accept lower credit scores. The auto refinance lender on this list with the lowest minimum credit score is OpenRoad. It only requires a score of at least 460.

And if the rate on your auto refinance loan is higher than what you’re currently paying, then refinancing isn’t worth it — unless you’re trying to stretch out your loan term.

If you can’t afford your car loan because your monthly payments are too high, it can make sense to refinance your loan with a similar or even slightly higher interest rate.

To do this, focus on the longest car loan that you qualify for, with the lowest rate. Just know that you will be paying more overall interest. Still, if it keeps your car from being repossessed, the extra interest could be worth it.

If you don’t qualify for refinancing and you’re struggling to keep up with payments, contact your lender and ask if it has a hardship program.

Tip: Consider a co-borrower

If you’re having a hard time getting an auto refinance loan because of bad credit, consider getting a co-borrower or cosigner. A co-applicant is a second person on your refinance loan, and it’s best that they have excellent credit.

Including a co-borrower or cosigner can help you get approved or get a lower rate because it reduces the lender’s risk. If you don’t pay back your loan, they are also responsible. A co-borrower also has equal rights to the car as you, so choose carefully.

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Should I refinance my car?

Borrowers refinance auto loans after buying a car for a variety of reasons. Here’s when to consider refinancing your car loan:

  • Your credit score has increased. Improving your credit score can boost your chances of qualifying for better rates when you refinance your car loan. You can raise your score by making on-time payments on your current auto loan and by reducing other debts.
  • Interest rates have dropped. If interest rates have dropped since you took out your car loan, you may be able to land better rates with a refinance.
  • You’re struggling to make payments. If you can’t keep up with your current loan, consider refinancing for a longer term. This can help lower your monthly car payments. Keep in mind that you’ll pay more in interest in the long run.
  • You bought at a buy here, pay here. If you bought a vehicle at a buy here, pay here car lot, you are probably paying super-high interest rates. Even if your credit isn’t perfect, you might get a lower rate by refinancing with a legitimate lender.
  • You want to add or take someone off of your car title. Most auto refinance lenders let you add or remove co-borrowers during the refinancing process. When you add or remove a co-borrower, you’re also adding or removing them from the title.

Does it cost money to refinance a car?

It can cost money to refinance a car. Some lenders charge doc fees or admin fees, sometimes reaching several hundred dollars. These fees are meant to cover overhead, like filing DMV documents on your behalf. Typically, your lender will roll these fees into your loan, so they aren’t an out-of-pocket expense.

Estimate your new car payment

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How we chose the best auto refinance lenders

We reviewed more than 44 lenders and financial institutions that offer auto refinance loans to determine the overall best 10 lenders. To make our list, lenders must offer competitive APRs. From there, we prioritize lenders based on the following factors:

  • Accessibility: We chose lenders with auto loans that are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification, preapproval and application processes.
  • Rates and terms: We prioritize lenders with more competitive starting fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

LendingTree reviews and fact checks our top lender picks on a monthly basis. We partner with dozens of auto lenders, but partners and non-partners receive equal treatment in our systematic scoring and review process.

Frequently asked questions