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Best auto loan refinance rates for May 2025

Written by
Rebecca Betterton
Edited by
Kellye Guinan
Reviewed by
Beverly Harzog
Updated May 07, 2025

What to know first: 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. Bankrate's best refinance auto loans were chosen based on each lender's interest rates, customer experience, available terms and transparency.

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A closer look at our top auto loan refinancing 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. 

Rating: 4.4 stars out of 5
4.4
Bankrate review
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Overview: Gravity Lending functions as an auto loan marketplace that allows borrowers to compare potential refinancing rates side by side. It also doesn't charge an origination fee, which helps borrowers save extra money when refinancing.

Read Bankrate's Expert Gravity Lending Review
Fixed APR
4.99%–14.99%
Loan amount
$15k– $150k
Min credit score
640
Est. APR
4.99%–14.99%
Loan amount
$15k–$150k
Min credit score
640
Loan term
2-7 yrs
Origination fee
Not specified
Pros
  • Ability to add or remove co-borrowers
  • Loan officer customer support
  • No origination fees
Cons
  • Potential long funding timeline
  • Unknown maximum rate
  • Vehicle restrictions
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Gravity Lending loan. Gravity Lending is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.5 stars out of 5
4.5
Bankrate review
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Overview: Autopay connects auto refinance borrowers with potential lenders. It is part of a trio of marketplaces, including Tresl and Rate Genius. Using a single application form, borrowers can compare a number of refinance offers from different lenders.

Read Bankrate's Expert Autopay Review
Fixed APR
4.85%
Loan amount
$2.5k– $100k
Min credit score
580
Est. APR
4.85%
Loan amount
$2.5k–$100k
Min credit score
580
Loan term
1-8 yrs
Origination fee
Not specified
Pros
  • Large network of lenders
  • Co-applicants allowed
  • Ability to compare multiple loans
Cons
  • Lowest APR only for excellent credit borrowers
  • Unspecified credit requirements
  • Possible down payment
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Autopay loan. Autopay is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.2 stars out of 5
4.2
Bankrate review
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Overview: Like other lenders on our list, Auto Approve is a lending network that helps match borrowers with the best lender for their needs. This comparison is especially helpful when refinancing. Auto Approve will even handle the DMV paperwork and contact the previous lender on the borrower’s behalf.

Read Bankrate's Expert Auto Approve Review
Fixed APR
5.49%–24.55%
Loan amount
$10k– $150k
Min credit score
600
Est. APR
5.49%–24.55%
Loan amount
$10k–$150k
Min credit score
600
Loan term
1-8 yrs
Origination fee
Not specified
Pros
  • Vehicle add-ons
  • Personalized customer support
  • Joint applications
Cons
  • Undisclosed lenders in network
  • High minimum loan amount
  • Funding timelines vary
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Auto Approve loan. Auto Approve is also a good match for people who prefer access to customer service seven days a week.
Rating: 4 stars out of 5
4
Bankrate review
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Overview: LightStream offers an easy-to-navigate online interface for unsecured loans. Borrowers can apply for repayment terms from 24 to 84 months and a high maximum refinancing amount of $100,000.

Read Bankrate's Expert LightStream Review
Fixed APR
7.19%–15.44%
Loan amount
$5k– $100k
Min credit score
Not specified
Est. APR
7.19%–15.44%
Loan amount
$5k–$100k
Min credit score
Not specified
Loan term
2-7 yrs
Origination fee
Not specified
Pros
  • Fast funding
  • Mobile application available
  • High loan amount
Cons
  • Unsecured loans
  • Must refinance at least $5,000
  • No prequalification
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an LightStream loan. LightStream is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.5 stars out of 5
4.5
Bankrate review
See personalized rates

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.

Read Bankrate's Expert Caribou Review
Fixed APR
5.48%–28.55%
Loan amount
$5k– $125k
Min credit score
600
Est. APR
5.48%–28.55%
Loan amount
$5k–$125k
Min credit score
600
Loan term
2-7 yrs
Origination fee
Not specified
Pros
  • Customer service available seven days a week
  • Insurance bundling option
  • Prequalification offered
Cons
  • Not available in all states
  • Potential processing fee
  • High minimum loan amount
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Caribou loan. Caribou is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.1 stars out of 5
4.1
Bankrate review
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Overview: RefiJet is a lender marketplace that connects borrowers to the right loan for their needs. It boasts a wide range of loan amounts and terms and provides a dedicated specialist to each borrower.

Read Bankrate's Expert RefiJet Review
Fixed APR
5.29%–21.99%
Loan amount
$5k– $150k
Min credit score
500
Est. APR
5.29%–21.99%
Loan amount
$5k–$150k
Min credit score
500
Loan term
2-8 yrs
Origination fee
Not specified
Pros
  • Customer support
  • Cash-out refinancing available
  • Prequalification available
Cons
  • Vehicle restrictions
  • Long funding timeline
  • Application not fully online
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an RefiJet loan. RefiJet is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.1 stars out of 5
4.1
Bankrate review
See personalized rates

Overview: LendingClub not only has competitive rates compared to other lenders but also offers the option to prequalify, which can help you investigate rates ahead of fully applying. 

Read Bankrate's Expert LendingClub Review
Fixed APR
4.99%–24.99%
Loan amount
$4k– $55k
Min credit score
300
Est. APR
4.99%–24.99%
Loan amount
$4k–$55k
Min credit score
300
Loan term
2-7 yrs
Origination fee
Not specified
Pros
  • Competitive minimum APR
  • Relatively low minimum amount
  • Accepts fair credit
Cons
  • Slow funding timeline
  • High maximum APR
  • Not available in all states
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an LendingClub Auto loan. LendingClub Auto is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.5 stars out of 5
4.5
Bankrate review
See personalized rates

Overview: iLending has over 15 years of experience in the lending industry and is focused on helping borrowers find the right financing for their budget. The lender offers high loan amounts up to $150,000 and has a low minimum credit score requirement suitable for those with low scores.

Read Bankrate's Expert iLending Review
Fixed APR
5.49%–19.24%
Loan amount
$2.5k– $100k
Min credit score
560
Est. APR
5.49%–19.24%
Loan amount
$2.5k–$100k
Min credit score
560
Loan term
1-8 yrs
Origination fee
Not specified
Pros
  • Low minimum credit score
  • Vehicle repayment protection
  • Customer service
Cons
  • Unspecified fee amounts
  • No new/used auto loans
  • Online only experience
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an iLending loan. iLending is also a good match for people who prefer access to customer service seven days a week.

What is auto refinancing?

Auto refinancing is when you use a new car loan, with a new rate and terms, to pay off your old car loan. 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, your lender will likely pay off your old loan, and you will begin making monthly payments with your new interest rate and terms.

How credit score impacts auto loan refinance rates

Auto loan refinance rates are similar to rates for used cars, both being slightly higher than rates for new cars. Because car loans are secured with the car you are purchasing, and used cars depreciate faster than new cars, lenders perceive them as riskier and use an increased rate to offset their risk.

Your credit score is another factor that impacts your auto loan rate. A good or excellent credit score can save you money by securing a rate that is lower than the average auto loan rate.

Personal 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%

Source: Experian State of the Automotive Finance Market Q3 2024

Pros and cons of refinancing an auto loan

The choice to refinance your auto loan requires some consideration about 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.

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 780 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: Interest rates have lowered since the federal funds rate was cut for a third time in December. If you financed your car when rates were higher, refinancing can help you take advantage of lower average rates.

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BANKRATE EXPERT FAQ

Can I refinance without good credit?

Beverly Harzog

Nationally recognized finance expert

While it’s possible to refinance an auto loan when you have bad credit, you need to proceed carefully. Compare lenders and review the terms, rates and fee structures to protect yourself from predatory lenders. Remember that a low credit score comes with a high interest rate. So before you agree to a loan, be sure you can afford the monthly payments.

Rebecca Betterton

Auto loans expert

The short answer here is yes, you can refinance your vehicle without good credit. That doesn’t mean it is always the best move for your finances or your vehicle loan. Think of it this way: the reason you refinance is to get a more affordable loan. One of the best ways to refinance to a better loan is if you have stronger credit than when you borrowed initially. So if you crunched the numbers and need a lower payment, then it can be worth it. Otherwise, hold off until you’ve had more time to boost your credit so you can save more on interest.

When should you avoid refinancing your car loan?

While the potential for a lower monthly payment is promising, it cannot always become a reality. Consider the following times when refinancing is likely not the best financial move.

  1. When you’re close to paying off your loan: Unless you desperately need to reduce your monthly payment, refinancing close to the end of your loan is a risk. Lenders usually have a minimum term requirement, which can make it difficult. And even if you do gain approval, you can be left overextending and paying more. 
  2. When you owe more than the car is worth: The further along you are on the loan, the more likely you are to become upside down. 
  3. When interest rates are high: Interest rates are at elevated levels right now, so if you have an average interest rate, you might not be able to find anything better in the current environment. 
  4. When your car doesn’t meet lender requirements: Lenders have restrictions on your financial background and the age and mileage of your vehicle. If you do not meet these conditions, a refi might not be possible. 
  5. When fees will outweigh your savings: Some lenders enforce prepayment penalties, which can trigger if you pay your loan earlier than agreed upon. Ensure that you will not be stuck with high fees if you decide to refinance your current loan.

How to refinance an auto loan

To successfully refinance your auto loan, first decide if refinancing is right for you based on your current loan's terms, your credit score and your car's value. Then, if you decide refinancing will be beneficial, compare lenders and potential offers against the terms of your current loan to ensure you're saving as much as possible.

  1. Decide if refinancing is the right move:

    There are two main situations in which a refi makes sense: you can secure a better rate, or you need a lower monthly payment.

  2. Review your current loan:

    Most lenders require a minimum of $3,000 to $5,000 in order to refinance. Check your payoff amount along with your terms before starting the process.

  3. Check your credit score:

    Check your credit score to see if it has improved since your original loan approval. The higher your credit score, the better your new rate will be. While you can still refinance with bad credit, you'll want to consider the risks first.

  4. Estimate your car's value:

    Estimate your vehicle’s value and compare it with how much you owe on your loan. If you’re upside-down — meaning you owe more than the car’s worth — you’ll struggle to refinance.

  5. Determine your savings:

    Available interest rates vary by lender, so shop around with at least three different providers. Be sure to compare potential rates with your current loan.

  6. Get your paperwork in order:

    Gather the necessary documentation and details of the current loan so you can walk away with better rates and terms.

How to choose between auto loan refinancing lenders

Choosing the best lender comes down to saving you money — either overall or month to month. It’s recommended that you get quotes from at least three lenders before deciding which is right for you. When shopping for an auto loan, compare APRs across multiple lenders. Look for lenders that keep fees to a minimum and offer repayment terms that fit your needs.

Alternatives to refinancing your auto loan

If the goal is to save money, there are ways to lower your car payment without refinancing. If you cannot find a more competitive rate and term or do not qualify, consider these four options.

FAQs about auto loan refinancing 

How we choose our best auto loan refinance lenders

Bankrate's trusted auto loans industry expertise

Read our full methodology

48

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.

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