Best Auto Loan Refinancing Rates for SEPTEMBER 2024 (2024)

Best Auto Loan Refinancing Rates for SEPTEMBER 2024

Best Auto Loan Refinancing Rates for SEPTEMBER 2024

PenFed Credit Union is our top auto loan refinance lender for a variety of reasons. Most lenders take at least a day to disburse your loan funds, but PenFed is fast. According to customer support, your auto loan funds can be sent the same day you apply.

PenFed allows a broad range of loan amounts and you can refinance from as little as $500 to as much as $150,000.Its minimum rates are almost as low as they come, giving you a chance to refinance and save a lot of money if you have good credit.

Another perk is that PenFed offers refinancing for up to 125% of the vehicle’s value. You can use this to borrow against your car and get cash for upcoming expenses or to consolidate high-interest debt.

While some credit unions are limited to select groups, the credit union's membership is open to the general public. You can join PenFed by opening a savings account with as little as $5, and PenFed will even provide the funds if you’re approved for an auto loan.

PenFed’s auto loan refinancing program cannot be used to refinance an existing PenFed loan. And if you opt for a longer loan term, such as 84 months, you’ll pay a significantly higher interest rate.

• Loans are available in all 50 states, D.C., and select U.S. territories
• Does not disclose a minimum credit score
• Borrower must join PenFed Credit Union, which requires a $5 deposit into a PenFed savings account (PenFed will provide the $5 if you’re approved)

PenFed does not disclose its income or credit requirements, but it does allow you to pre-qualify for a loan and view your options without affecting your credit score.

• For loans less than seven years: No limit on vehicle age; must have 125,000 miles or fewer
• For loans of seven years or more: Vehicle must be less than five years old and be under 60,000 miles
• Maximum loan-to-value ratio: 125%
• Allows private-party vehicle purchases: Yes

Many borrowers like the comfort of working with a large bank to take out a loan. When you borrow from a major bank like PNC, you know that the lender is reputable and reliable. If you’re an existing customer, you may be eligible for discounts or other benefits.

Customers can refinance their auto loans and qualify for competitive rates with PNC Bank. And if you sign up for automatic payments with a PNC checking account, you can qualify for a 0.25% interest rate reduction.

PNC also has hardship options for borrowers who experience financial difficulties like unemployment, illness, or other unexpected life events. You may be eligible for a loan modification that makes your payments more affordable, or other solutions.

• Auto refinance loans are only available in the 29 states where the lender has physical branches.
• Lender does not disclose minimum credit score or income requirements.
• Borrower must provide two-year employment history and income information.

• Maximum accepted vehicle age: 8 years
• Maximum accepted mileage: 80,000 miles (borrowers with excellent credit may be able to refinance vehicles with mileages as high as 100,000)
• Maximum loan-to-value ratio: 115%
• Allows private-party vehicle purchases: Yes

Shopping around for auto loan refinancing can be time-consuming, but AUTOPAY can simplify the process. After you fill out just one form, AUTOPAY connects you with offers from its partner lenders. If you have good credit, you may be offered some very low rates. Lenders have competitive rates and terms as long as 96 months.

AUTOPAY offers flexible loan amounts with minimums as low as $2,500. And AUTOPAY’s partners provide the following refinancing options:

• Traditional refinance: The traditional refinance loan may help you lower your interest rate or reduce your monthly payments.
• Cash-out refinance: With a cash-out refinance loan, you can borrow more than you owe on your vehicle. Through AUTOPAY’s partners, you can get up to $12,000 cash back to cover other debt or expenses.
• Lease buyout: A lease buyout loan allows you to pay off your lease early and keep your vehicle at the end of your base term.

Loan terms, rates, and fees vary by lender, but many of AUTOPAY’s partners charge origination fees.

• Recommened credit score of 500 or higher
• Available in all U.S. states and Washington, D.C.

• Maximum accepted vehicle age: 10 years
• Maximum accepted mileage: 150,000 miles
• Maximum loan-to-value ratio: Not disclosed
• Allows private-party vehicle purchases: Yes

Credit unions are nonprofit organizations that can be excellent resources for loans. Because they’re nonprofits, they often have lower rates and fees than other lenders.

Members can qualify for a 0.25% rate reduction. Consumers Credit Union will refinance more than just your typical car or truck as it also offers refinancing for motorcycles and recreational vehicles.

Some credit unions have strict membership requirements, but this one doesn’t require membership for auto loans. To join, you can pay $5 to the credit union’s sponsor, the Consumers Cooperative Association, and deposit and maintain a minimum balance of at least $5 in a Consumers Credit Union savings account.

Consumers Credit Union doesn’t disclose its minimum credit score and income requirements. And to view rates, you must provide your Social Security number.

• Maximum accepted vehicle age: None
• Maximum accepted mileage: None
• Maximum loan-to-value ratio: 125%
• Allows private-party vehicle purchases: No

LightStream could be a good choice for borrowers who want a quick and easy refinancing option. It's also a good choice for those who own older or high-mileage vehicles. These loans are similar to personal loans, which means they’re unsecured. As such, they have higher rates than you may find elsewhere,

LightStream doesn’t have any limitations for vehicle age, model, or mileage, and the application process won’t be as rigorous.Plus, it boasts rapid loan disbursem*nts. You could receive the loan funds as soon as the same day you apply.

Not everyone qualifies for a loan through LightStream. The lender typically only accepts borrowers with very good to excellent credit, but you can apply with a co-applicant to improve your odds of qualifying for a loan.

• Must be the age of majority in your state
• Must have a verifiable source of income
• Available in all 50 states and Washington, D.C.

• Maximum accepted vehicle age: No maximum
• Maximum accepted mileage: No maximum
• Maximum loan-to-value ratio: No maximum
• Allows private-party vehicle purchases: Yes

Since its launch in 2009, OpenRoad Lending has grown to provide auto loan and refinancing options.

Through its network of lenders, borrowers with fair credit can qualify for loans, while applicants with the best credit may qualify for extremely low rates. And while some lenders limit refinancing to vehicles with 80,000 miles or less, OpenRoad offers refinancing for vehicles with mileages as high as 160,000 miles.

OpenRoad Lending has some unusual drawbacks. It isn’t available nationwide, and it will not work with self-employed borrowers. And income from Uber or other rideshare companies does not count towards OpenRoad Lending’s income requirements.

• Minimum credit score of 500
• Must be at least 18 years old
• Available to residents in 46 U.S. states
• Must make at least $2,000 per month (earnings from Uber or similar services do not count toward the income requirement)
• Your DTI cannot exceed 40%
• Can only refinance auto loans issued by NCUA- or FDIC-insured lenders such as credit unions and banks

• Maximum accepted vehicle age: Eight years
• Maximum accepted mileage: 140,000 miles
• Maximum loan-to-value ratio: 175%
• Allows private-party vehicle purchases: No
• Vehicle restrictions apply, including the exclusion of commercial vehicles, Oldsmobile, Daewoo, Hummers, Saab, Suzuki, and Isuzu models