Auto Refinance Rates from 3.50%
Last year, LendingTree helped to fund over $498 million in auto refinance loans
Best auto refinance lenders with the lowest rates
Best for: Cheap auto refinancing rates – Southeast Financial Credit Union
- No mileage or model year restrictions
- Can apply to skip a payment twice per year
- In addition to cars, also refinances ATVs, RVs, boats, motorcycles and jet skis
- Loans require credit union membership
- Skipping a payment can be helpful in a bind, but it costs $45
- Can’t check rates without hurting credit
Southeast Financial Credit Union (SFCU) (SFCU) offers the lowest auto loan refinance rates on our list.
If you’re looking to refinance your auto loan at a lower rate, SFCU has the lowest starting annual percentage rate (APR) on this list. It’s important to note that its ultra-low 5.00% rate only applies to 12-month loan terms, so you’ll have to pay your car off within a year. You’ll also need excellent credit.
As is the case with most credit union auto loans, you’ll need to become a member to get a refinance loan. That said, qualifying is easy and costs a total of $10 or less.
To qualify for a refinance loan with Southeast Financial Credit Union (SFCU) , you’ll need a credit score of at least 600.
You’ll also need to become an SFCU member, which requires creating a savings account with a $5 deposit and qualifying with one of the below:
- Donate $5 to Autism Tennessee
- Be a current or retired Southeast Financial Select Employee Group employee
- Be a relative of a Southeast Financial Credit Union (SFCU) member
- Live, work, worship, go to school or volunteer in a qualifying Tennessee or Kentucky community, Tishomingo County, Miss., or Corinth, Miss.
Best for: Financial protection if life changes – PenFed Credit Union
- Offers debt protection (for a 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
- 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 or have no restrictions at all)
Sometimes life happens and, when it does, PenFed Credit Union offers debt protection plans so you can avoid any negative impact to your credit. Debt protection can also provide peace of mind during a turbulent economy.
In the case of death, disability or loss of employment, PenFed Credit Union offers the option of debt protection for a monthly fee. In these instances, PenFed can cancel your loan balance or monthly payments with no penalties. Protection rates vary, but start at $.88 per $1,000 of the loan balance you’d like covered.
You can check rates before joining the credit union. If you want to accept your loan, you have to become a member.
To qualify for a PenFed auto loan, you must meet the following requirements:
- Membership: PenFed membership (anyone can join)
- Administrative: Open a PenFed savings account with $5 deposit; may need to submit documents to verify your identity and income
- Vehicle restrictions: Must have less than 125,000 miles
Best for: Turning car equity into cash – Autopay
- 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
- Customer service is not available on Sundays
- Some of Autopay ‘s lending partners charge fees as high as $400 (fees are typically rolled into your loan amount)
With Autopay , you can take out as much as $12,000 in your car’s equity with a cash-out auto refinance loan.
Equity is how much of your car you actually own, based on how much you’ve paid into it and how much it’s worth. With Autopay , you may be able to take out up to $12,000 of your equity and use it as cash. You don’t want to cash out equity if you don’t need to (it drives up the balance of your auto refi loan), but this can be a good strategy if you have higher-interest debt to pay off.
Autopay is a lending marketplace that connects borrowers with partner lenders. Along with lenders and , Autopay is owned by The Savings Group.
Autopay connects borrowers to partner lenders and financial institutions. These partners all have different eligibility requirements.
To use the marketplace, you and the vehicle you’re refinancing must meet the requirements below:
- Credit score: +
- Minimum monthly income: $2,500
- Vehicle restrictions: Must be 10 years or newer with less than 150,000 miles
Auto refinance rates
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 tier | Average APR |
|---|---|
| Excellent (800 and above) | 6.30% |
| Very good (740-799) | 6.48% |
| Good (670-739) | 7.50% |
| Fair (580-669) | 10.10% |
| Poor (under 580) | 13.39% |
Track auto refinance trends with LendingTree
Auto refinance rates vary widely based on credit score. LendingTree data shows super prime borrowers often secured rates under 7%, while subprime rates remained higher.
Estimate how much you’ll save with your auto refinance rate
Expert insights on auto refinancing in 2025
In times of economic uncertainty, what should people remember when refinancing a car?
The most important thing to do when refinancing a car is to make sure that it’s worth the cost. Refinancing doesn’t happen for free, so it is important to crunch the numbers to understand how much you can save by refinancing.
Schulz urges you to consider how much you’d be able to reduce the rate, how high the fees are and how long you’ve had your current loan before making a decision. As appealing as it might be to refinance, the truth is that it won’t work for everyone.
Are you putting the brakes on buying a car because of tariffs? You aren’t alone. We conducted a survey to learn more about car-buying habits in the midst of tariffs. Of those who were planning on buying a car this year, 36% have now decided to wait.
As car costs rise, it may be a smarter move to refinance instead of buy. You’ll have to keep your older car, but you could save money in the meantime if you qualify for a low refinance rate.
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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.
A LendingTree study found that refinancing your car loan could save you an average of $142 a month and $1,346 over the life of your loan. If you refinance for a shorter loan term, you could save significantly more — $6,291 on average.
Choosing a shorter repayment term is one of the best ways to save money when you refinance. But if you’re struggling to keep up with payments, a loan with a longer term and smaller payments can help you keep your loan out of default. Just don’t expect to save money on your loan.
Auto refinancing based on credit score
| Your credit band | Strategy | Tips |
|---|---|---|
| Excellent (800 – 850) | Check your rates with lenders that offer the lowest starting APRs, like Southeast Financial Credit Union (SFCU) | Don’t stop at the first offer — you can save even more money by shopping around |
| Good to very good (670 – 799) | Shop around with top refi lenders or use LendingTree to get the best deal | Remember that short loan terms will help you save on interest |
| Fair (580 – 669) | You’ll pay higher rates with fair credit, so find lenders with low maximum APRs or use a marketplace to get the best offer | Add a cosigner or work on improving your credit to get lower rates |
| Poor (300 – 579) | Refinancing now likely won’t save you money on interest overall, so if you can’t afford your monthly payments, ask your lender about hardship programs or consider refinancing with a longer loan term — you’ll pay more, but you’ll have smaller monthly payments in the meantime | Look for lenders with low credit score requirements like and |
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
If you have bad credit, an auto refinance loan could be more expensive than what you’re paying now. But if you’re having a hard time affording your car loan because your monthly payments are too high, refinancing — even with a higher rate — could make sense.
Refinancing your auto loan can give you the option to stretch out your payments over a longer term, providing you with wiggle room in your budget.
Let’s say you owe $15,000 with 36 months left on your loan and you’re paying $470 per month. If you qualify for a 48-month auto refinance loan, you could reduce your monthly car payment to $366.
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.
You could also see if a lender will approve you if you put a cosigner on your refi loan. Getting someone else to back you up could get you over the finish line, especially if they have excellent credit. You might even get a better rate.
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Tell us what you need
Take two minutes to tell us what you need to refinance. We’ll take care of the rest. It’s free, simple and secure.
Shop your offers
We’ll send you offers from up to five trusted lenders. Compare them to see if you can save money or lower your car payment.
Get refinanced
Choose an offer, finalize your loan and you could have the money you need within 24 hours.
Frequently asked questions
Each lender has its own rules for which cars it will refinance. Usually, your car needs to have less than 125,000 or 150,000 miles on the odometer. Most lenders only refinance cars that are 10 years or newer, although there are some exceptions (see ).
Also, your car needs full coverage insurance before you can refinance, and you will likely need to provide an active registration. You may also have a hard time refinancing a car with a salvage or branded title.
Before applying and taking a hard credit hit, make sure your car fits the lender’s eligibility requirements.
Refinancing your car loan can be a good idea if you qualify for a lower interest rate than what you’re paying on your current car loan. This can happen if you’ve improved your credit after buying your car, or if rates in general have dropped.
It might also be a good idea to refinance your car if you want a lower car payment. You can do this by choosing a refinance loan with a longer term. You will pay more overall interest, however.
Some people also refinance in order to add or remove a co-borrower. By doing so, that person will be added or removed from the car title. Adding a co-borrower to your auto refinance loan can help you get a lower rate if your co-borrower has excellent credit.
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.
A good auto loan refinance rate is a lower rate than what you’re currently paying. Use an online marketplace like LendingTree to compare multiple offers at once to see if you qualify for a good refinance rate for your car.
Keep in mind, it’s much easier to qualify for a lower interest rate if your credit score has improved since you bought your car.
Based on LendingTree’s research, we found that the best auto refinance lenders are:
- Southeast Financial Credit Union (SFCU)
- PenFed Credit Union
- Autopay
It’s usually best to wait at least six months before refinancing your auto loan.
Applying for two loans too close to each other (in this case, your first auto loan and then your auto refinance loan) can be bad for your credit score. If your credit score drops, then your auto refinance rate might be more than what you’re paying on your current auto loan.
Now, how soon you can refinance a car loan will depend on how long it takes for the car title to transfer to you. That can take a few days or more than a month — it varies by state and other factors. Even so, you may want to wait at least six months to refinance, if you can.
Refinancing an auto loan can affect your credit score, since you’ll need to submit to a hard credit pull when you apply for a loan. This can cause your score to drop by a few points temporarily. However, as you repay your car loan, your score will gradually increase again.
You usually don’t need a down payment to refinance a car. A down payment is usually only required when you are upside down on your car loan, or owe more than it’s worth. You might also have to make a down payment to refinance if you have bad credit, but that’s up to the lender.
Our methodology
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.