9 Best Auto Refinance Companies for March 2025

If you’re stuck with a high-interest car loan, you could be overpaying by thousands of dollars. The good news? Refinancing could lower your monthly payment and reduce the total amount of interest you pay—sometimes by a significant amount.

Auto loan refinancing works by replacing your existing loan with a new one, ideally with better terms. A lower interest rate means you’ll pay less over time, and extending your loan term could reduce your monthly payment. If your credit score has improved since you took out your loan, or if rates have dropped, refinancing could put more money back in your pocket.

9 Best Auto Refinance Lenders

Below, we’ve rounded up the best auto refinance lenders, so you can compare options and find the right fit.

What to Look for in an Auto Refinance Lender

Choosing the right auto refinance lender can make a big difference in how much you save—or how much extra you pay—over time. The best lenders offer competitive interest rates, flexible terms, and clear, upfront pricing with no hidden fees. Here’s what to focus on when comparing lenders.

Interest Rate and APR

Your new loan’s annual percentage rate (APR) is one of the biggest factors in determining whether refinancing will save you money. The lower the APR, the less interest you’ll pay over time.

When comparing rates, keep these points in mind:

• The advertised rate isn’t always what you’ll get—your actual rate depends on your credit score, loan term, and lender policies.
• Some lenders offer prequalification with a soft credit check, so you can see potential rates without impacting your credit score.
• Shorter loan terms generally come with lower interest rates but higher monthly payments.

Fees and Hidden Costs

Even if a lender offers a low interest rate, extra fees can eat into your savings. Watch out for:

• Origination fees – Some lenders charge a fee to process your new loan.
• Prepayment penalties – A fee for paying off your loan early, which can cancel out potential savings.
• Title transfer fees – Some states require a title transfer fee when switching lenders.

Always read the fine print, and don’t hesitate to ask the lender about all possible fees before committing.

Loan Terms and Monthly Payment Options

Refinancing lets you adjust your loan term, but choosing the right one depends on your financial goals.

• Shorter terms (24-48 months): Higher monthly payments but less interest paid overall.
• Longer terms (60-84 months): Lower monthly payments but more interest paid over time.

If your goal is to reduce your monthly payment, extending your term can help—but be aware that it may cost you more in the long run.

Discounts That Can Lower Your Rate

Some lenders offer ways to reduce your interest rate even further:

• AutoPay discounts: Many lenders lower your APR by 0.25% or more when you set up automatic payments.
• Loyalty discounts: If you already have a relationship with a bank or credit union, they may offer a lower rate for refinancing with them.
• Membership-based lenders: Some credit unions offer better rates for members, and membership is often open to anyone.

Lender Reputation and Customer Service

A low interest rate isn’t worth much if the lender has poor service or unclear policies. Before choosing a lender, check:

• Customer reviews on sites like Trustpilot or the Better Business Bureau.
• Response times—does the lender offer quick approvals and easy customer support?
• Transparency—are fees, loan terms, and conditions clearly stated upfront?

The best refinance lenders offer clear, competitive loan terms with no surprises. Taking the time to compare offers and read the fine print can help you refinance with confidence and maximize your savings.

How to Refinance a Car Loan

Refinancing your car loan can lower your interest rate, reduce your monthly payment, or help you pay off your loan faster. But to get the best deal, you need a clear plan. Follow these steps to make sure you save money and avoid common pitfalls.

Check Your Credit Score

Your credit score plays a major role in the interest rate you’ll qualify for. Before applying, check your credit report from all three major credit bureaus for errors that could be dragging your score down. You can request your free credit reports from AnnualCreditReport.com.

Most lenders use FICO scores to assess creditworthiness, but each has its own approval criteria. If your credit score has improved since you took out your original loan, you’re more likely to qualify for better terms. If your credit is lower, it may be worth improving it before refinancing.

Compare Lenders and Loan Offers

Not all lenders offer the same rates or terms. Compare options from banks, credit unions, online lenders, and auto refinance marketplaces.

Many lenders offer prequalification with a soft credit check, allowing you to see estimated rates without impacting your credit score. Be sure to check loan term options, fees, and whether the lender allows early repayment without penalties.

Gather Required Documents

Lenders will need proof of your identity, income, and vehicle details. Having these documents ready before applying can speed up the process. Most lenders will ask for:

• Driver’s license: Valid identification to confirm your identity.
• Vehicle identification number (VIN): Found on your car or registration documents.
• Proof of income: Recent pay stubs or tax returns if self-employed.
• Current auto loan statement: Details of your existing loan.
• Vehicle registration and insurance: Proof that your car is legally registered and insured.

Submit Applications

Applying to multiple lenders within a 30-day window ensures all credit inquiries count as a single event, minimizing the impact on your credit score. This lets you compare real offers and choose the best one without unnecessary credit damage.

Run the Numbers Before Accepting an Offer

Use an auto loan refinance calculator to make sure refinancing actually saves you money. Consider the total interest savings over the life of the loan, how the new monthly payment compares to your current one, and any fees or penalties that could reduce your savings.

For example, if you owe $30,000 on your loan at 8.5% interest with a $684 monthly payment, refinancing to 4.5% interest on the same term would drop your payment by $57 per month and save you $2,683 over the loan’s life.

On the other hand, if you owe $10,000 at 6% interest with three years left, and a lender offers 5% interest but a six-year term, your payment would drop, but you’d pay $3,893 more in total interest. Extending your loan can make refinancing more expensive in the long run.

Review the Loan Agreement Carefully

Before signing, read the fine print. Look for prepayment penalties, unexpected fees, and loan term changes that could make refinancing more expensive. Once you finalize the agreement, your new lender will pay off your old loan, and you’ll start making payments under the new terms.

Bottom Line

Refinancing your auto loan can be a smart financial move, potentially leading to lower interest rates and monthly payments. By carefully choosing the right lender and understanding the terms, you can get through the process with confidence and ease.

Whether seeking a better rate or more favorable terms, the best auto refinance companies offer flexible options to suit various needs. Remember, the right refinancing choice can significantly impact your financial journey, making your auto loan more manageable and budget-friendly.

Frequently Asked Questions

Can I refinance my auto loan if I’m behind on payments?

Most lenders require you to be current on your auto loan before refinancing. If you’re behind on payments, it’s best to bring your account up to date first. Some lenders may offer hardship programs or alternative financing options if you’re struggling to make payments.

Will refinancing my car loan extend my repayment period?

It depends on the loan terms you choose. If you refinance with a longer loan term, your monthly payment will decrease, but you’ll likely pay more interest over time. If you refinance with a shorter term, you may pay less in total interest but have a higher monthly payment.

Do I need a down payment to refinance my car loan?

No, auto loan refinancing does not require a down payment. Instead of taking out a new loan to buy a car, refinancing replaces your existing loan with a new one. However, if you owe more than your car is worth, a lender may require you to pay the difference before approving the refinance.

Can I refinance my auto loan more than once?

Yes, there’s no limit to how many times you can refinance a car loan, as long as you meet the lender’s requirements. However, refinancing multiple times in a short period could lower your credit score and result in paying more interest in the long run.

Will I need a co-signer to refinance my auto loan?

If your credit score is low or your income doesn’t meet the lender’s requirements, you may need a co-signer to qualify for refinancing. If your financial situation has improved since taking out the original loan, you may be able to refinance without a co-signer or even remove one from your existing loan.

Can I refinance if my car has high mileage?

Most lenders have mileage limits for refinancing, typically ranging from 100,000 to 150,000 miles. If your car exceeds the lender’s limit, refinancing may be more challenging, but some lenders specialize in high-mileage vehicle loans.

What happens to my old loan after I refinance?

Once your refinance loan is approved, your new lender will pay off the remaining balance on your existing loan. You’ll then start making payments to the new lender under the new terms. Be sure to confirm that your original loan is fully paid off to avoid any outstanding balance or late fees.