Best Cash-Out Auto Refinance Loans in 2026
You could get a lower interest rate and tap into your vehicle’s equity through a cash-out auto refinance
| Lender | User rating | Best for | Starting APR | Term | Amount | |
|---|---|---|---|---|---|---|
|
Cash-out auto refis on owned vehicles | 4.85% | 24 to 96 months |
$2.5k – $100k |
||
|
|
Cash-out auto refis from a credit union | 9.24% | 36 to 120 months | Up to 125% of value |
Learn more about how we chose the best cash-out refinance auto loans.
Best for: Cash-out auto refis on owned vehicles – Autopay
- Starting APR
- 4.85%
- Auto equity loans are available if you’ve paid off your car
- Also offers standard auto refinancing
- Can buy add-on protection for your vehicle’s mechanical and electrical components
- Can only access up to $12,000 in equity
- Customer service is closed on Sundays
Many lenders only offer cash-outs if you have a current auto loan to refinance. That’s not the case with loan marketplace Autopay . Some of its partners offer auto equity loans alongside traditional refinancing. These allow you to borrow against the value of your car. For instance, if your car is worth $10,000, you may be able to borrow a portion of that $10,000.
The most you can borrow against your car’s value is $12,000, even if your car is worth more than that.
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
Best for: Cash-out auto refis from a credit union – Digital Federal Credit Union
- Starting APR
- 9.24%
- Can borrow up to 30% more than your vehicle’s value
- 0.25% APR discount for fully electric vehicles
- No administration fees (unless refinancing a DCU auto loan)
- Undisclosed credit score minimum
- Membership required to finalize loan (but it’s easy to join)
Credit unions tend to offer competitive APRs, and DCU is no exception. You could also get a rate reduction if you have an electric vehicle or are a Plus or Relationship member and sign up for automatic payments. What’s more, you won’t pay an administration fee as long as you’re not refinancing a DCU auto loan.
Becoming a DCU member comes with other perks, too. For instance, you can check your FICO Score once a month at no additional cost. However, to get the autopay discount, you must be at least a Plus member and enroll in autopay. You can only be a Plus member if you get at least $500 directly deposited into your DCU checking account.
You must be a DCU member to take out a loan. To join, you must open a DCU savings account with a deposit of at least $5 and meet one of the following requirements:
- Live, work, worship or go to school in certain Massachusetts communities
- Work for a participating employer
- Join a participating association (annual dues between $10 and $120)
DCU doesn’t disclose much information about its minimum borrower requirements. You can check auto refinance rates before becoming a member, with no impact to your credit score.
What is cash-out auto refinancing?
A standard auto refinance replaces your current loan with a new one for the amount you still owe. If your credit has improved, you may qualify for a lower annual percentage rate (APR) or a different repayment term.
A cash-out refinance works the same way, except the new loan is larger than your current balance. The extra amount comes from your vehicle equity.
Equity is the difference between your car’s value and what you owe. You can use this extra cash to consolidate debt, make home repairs or do practically anything else.
Here’s how that looks in practice.
| Before cash-out refinance | After cash-out refinance | |
|---|---|---|
| Loan amount | $13,000 | $20,000 |
| APR | 11% | 7% |
| Remaining/new term | 36 months | 60 months |
| Estimated monthly payment | $426 | $396 |
| Total interest paid | ~$2,322 | ~$3,761 |
| Cash received | $0 | $7,000 |
In this scenario above, the new lender pays off your $13,000 balance and gives you $7,000 equity as cash. This is why your new loan amount is higher than before. You also move from an 11% APR to a 7% APR because you improved your credit.
Even though the new loan has a longer term resulting in more total interest, your monthly payment drops and you gain access to the $7,000 you need.
Use LendingTree’s auto refinance calculator to get an idea of how much a cash-out refi may cost you. Just be sure to account for the extra cash you’re applying for in the refinance loan amount box.
LTV, or loan-to-value ratio, measures how much equity the lender will allow you to take out. For example, a lender that has an LTV of 80% may allow you to take out up to 80% of your equity if you have excellent credit. Lenders rarely disclose their LTVs online, so you may need to call them directly to ask.
Pros and cons of cash-out auto refinancing
Although handy, cash-out auto refinancing can also be risky. It’s essential to have a full understanding of what you’re getting into before jumping in.
Pros
-
May be good for consolidating debt
You could put your cash-out auto refinance toward debt consolidation. This only makes sense if your new car loan comes with a lower APR than what you carry on your current debt. -
Can give you access to cash at a lower cost than a credit card
In a financial emergency, tapping your car’s equity could be better than turning to a credit card.
For one, credit card interest typically compounds when you carry a balance from month to month. This means that you’ll pay interest on your interest. Auto refinance loans typically don’t work that way. The amount of interest you owe is based on the balance of your loan. As long as you stick to your repayment schedule, your balance won’t grow over time.
For most, cash-out auto refi loans also carry lower interest rates, generally. At the time of writing, the average credit card interest rate is 24.04%, according to a LendingTree study. If you have good to excellent credit, you can expect to pay much less than that. -
Possible to pay less interest or a lower monthly car payment
You may qualify for a lower APR if your credit score has gone up since you first bought your car. Additionally, you could opt for a longer loan term. If you extend your term, your monthly car payment will likely go down (but you’ll pay more interest over time).
Cons
-
Increased risk for an upside-down car loan
Since you’ll have less (or no) equity after a cash-out auto refinance, you may find yourself with an upside-down car loan. When you’re upside down, you owe more on your vehicle than it’s worth and is also referred to as being underwater.
Even if you aren’t upside down right away, your risk for an upside-down loan increases after a cash-out refinance. Remember, your car will also likely depreciate as time passes, further reducing your equity.
When you’re upside down, you may need to pay off the difference in what you owe and what your car is worth if you want to trade it in. -
Adds to your debt
Cash-out auto refinancing requires you to take on more auto loan debt than you currently have. Essentially, you’re negating any progress you’ve made in paying off your vehicle. -
Interest and fees could add up
Even if your new APR is lower, stretching your repayment over a new loan term can increase your total interest. Plus, refinancing often involves one-time costs like title, lien and processing fees, which add to the overall expense.
If you’re taking a cash-out auto refinance, you may also want to purchase GAP insurance. This can help hedge some risk if you go upside down on your loan.
How to apply for cash-out auto refinancing
To apply for a cash-out auto refinancing, you should:
Determine your car’s value
To decide if a cash-out auto refinance is worth it, you need to figure out how much equity you have in your vehicle.
First, use KBB or NADA to get an idea of your car’s value. Then, ask your current lender for your loan payoff amount. The difference between your car’s value and your payoff amount is how much equity you may have.
Check your credit score
Use LendingTree Spring to get your free credit score. Then, compare it to what your score was when you bought your car. If your score has gone up, you might qualify for a lower APR than you have on your current loan.
Compare lenders and prequalify
Cash-out auto refinance loans can be hard to come by. LendingTree partners with many lenders that offer cash-out auto refinancing. Fill out one quick form, get multiple offers and prequalify. Prequalifying lets you check your rates and eligibility without hurting your credit score.
Apply and finalize your loan
When you’ve found the best cash-out auto refinance offer for your needs, you can formally apply. This will likely bring your credit score down by about five points because it requires a hard credit pull.
During this process, the lender will ask for details about your finances and employment. It may also ask for documents such as bank statements or a copy of your government-issued ID.
After submitting all of your required documents, the lender will get back to you with a decision within a few minutes or days. It will also provide more information about how your current loan will be paid, how you’ll receive your equity and when your first payment is due.
Alternatives to cash-out auto refinancing
Cash-out auto refinancing isn’t the right choice for everyone. Consider the alternatives below:
Traditional auto refinance
Best if you qualify for a lower APR on your auto loan and don’t need cash
An auto loan refinance can help you snag a lower APR due to either an increased credit score or better market conditions. To get the biggest bang for your buck, don’t lengthen your loan term, as this will increase how much interest you pay over time.
Auto equity loan
Best if you need cash, have positive equity in your car and don’t want to change your auto loan
An auto equity loan lets you take the equity you have in your car as cash without refinancing your car loan. Because your car serves as collateral, APRs on auto equity loans tend to be lower than credit cards.
Like a cash-out auto refinance, you may lose your car if you fall behind on your equity loan payments. You’ll still need to keep up on existing car loan payments, too.
Personal loan
Best if you need cash and don’t qualify for a lower APR on your auto loan
Like a cash-out auto refinance, personal loans provide a lump sum of cash that you can use for nearly anything. Most personal loans have nothing to do with your car, although some lenders may allow you to use your car as collateral to get a lower rate.
A personal loan may pose less risk than a cash-out auto refinance. Your personal loan lender can’t repossess your car if you can’t pay back what you borrow. Even though you won’t lose your car, though, just one missed payment can cause a drastic drop in your credit score.
How we chose the best cash-out auto refinance loans
We reviewed more than 15 lenders and loan platforms that offer auto refinance loans to determine the overall best five lenders.
According to our systematic rating and review process, the best cash-out auto refinance loans come from Autopay, Digital Federal Credit Union, iLending, RateGenius and RefiJet.
To make our list, lenders must offer cash-out auto refinance loans. 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 prioritized 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 regularly reviews and fact checks our top lender picks. Not all lenders we reviewed can be found on LendingTree’s loan marketplace.
LendingTree partners with dozens of lenders, but partners and non-partners receive equal treatment in our scoring and review process. Read more about our editorial guidelines.
Frequently asked questions
It can be, but refinancing an auto loan is never a one-size-fits-all solution. This is especially true with a cash-out auto refi, since you’ll also be negating your car’s equity. You may want to explore other options that won’t put you at risk for an upside-down car loan or repossession.
That depends on your equity and the lender. During a cash-out auto refinance, some lenders will only allow you to borrow up to your equity. Others may allow you to borrow more than what your car is worth (such as DCU).
The less you owe on your car, the more likely you are to have positive equity. Paying for your car in cash is a surefire way to have positive equity. If this is unrealistic, you could make a large down payment or pay off your car loan faster than your loan term requires. Also, buying a make or model known to retain value can help you maintain positive equity.