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Top Auto Loan Refinancing Providers
Most car buyers rely on some form of financing for their vehicle purchases, but refinancing a car loan can be a great way to save some money and adapt to a new financial situation. Refinancing lets vehicle owners change their loan terms and monthly payment amounts, which can lower expenses and make vehicle ownership much easier.
While the number of auto lenders seems unending, there are far fewer lenders offering refinancing services, and only some with favorable terms and interest rates. We’ve gathered a few of our favorite auto refinance loan providers that do feature favorable terms here. Let’s get rolling to find out more about auto refinancing providers.
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Trusted Company Reviews #1 Pick for 2025
- Best rates available through PenFed’s car-buying service
- Discount programs often available
- Loan amounts up to $100,000
Why we love it 💖
Personalized service and competitive interest rates are hallmarks of PenFed CU’s refinancing services.
Our Highest Rated Auto Refinance Loan Companies
- PenFed is a military credit union. However civilians can become members.
- New and used car loans are also available
- Best rates require excellent credit
- Late fees apply
- Fast online prequalification
- No prepayment penalties
- Available in all 50 states and Washington D.C.
- $5,000 loan minimum, and the vehicle must be less than 10 years old
- Offers prequalification with no social security number required
- Application and prequalification happen 100% online
- Offers lease buyout and new vehicle purchases
- Some services are limited to dealers’ finance departments
- Prequalification does not require a hard credit inquiry
- Focuses almost exclusively on refinancing and lease buyouts
- Works with multiple lenders to find the best rates and terms
- $10,000 minimum loan amount and a ten-year age limit on vehicles
- Range of loan terms available
- GAP insurance and other benefits are available
- Membership is limited to military and related personnel
- Ssave money with a Navy Federal car-buying program
How Does an Auto Refinance Loan Work?
A lot of the auto refinancing process looks and feels like other auto loans, but the purpose is different. Rather than using loan proceeds to purchase a car, refinancing loans essentially buy out the old loan and create a new account with different terms.
The resulting loan can offer lower interest rates, reduced monthly payments, and other benefits, but it’s important to consider the potential downsides of refinancing, including extending the loan term and payments for a longer period.
When Should You Consider Refinancing Your Car Loan?
While we’d all like to buy a car at the most ideal time, that’s not always the case. You might need to buy a car when your credit score isn’t the best or when you don’t have an adequate down payment available.
Refinancing can make sense in these situations because it allows the borrower to reduce their interest rate and monthly payments. However, these decisions can have negative consequences, including extending the loan period, which can increase the interest you pay over the life of the loan.
Pros and Cons of Auto Loan Refinancing
Pros
- Can yield lower interest rates and monthly payments
- Allows the borrower to change lenders or remove a cosigner
- It may help you to pay off the loan earlier
Cons
- Refinancing can extend the loan and increase total interest payments
- A new loan may come with additional fees and other charges
- Applying for a loan comes with a hit to your credit score
How to Choose the Best Auto Refinance Lender
One of the most effective ways to find the best auto refinance savings is to shop around, getting as much information about as many lenders as possible. You’re not just looking for the lowest interest rates and most favorable refinance requirements. You’ll also want to consider customer reviews and any bonuses each lender offers.
Trust is an important factor, and peace of mind may be worth more than a few dollars in interest each month. Finally, carefully review each lender’s terms and conditions. Some have restrictions on the age and value of vehicles, which can complicate the loan process or make it impossible to refinance with some lenders.
| Best Interest Rate Available (subject to change) | Fees (origination, transfer, etc | Minimum Credit Score for Approval | Number of States Available | |
| PenFed CU | 1.14% | $0 | N/A | 50 – plus Puerto Rico, Guam, and some military bases |
| Upgrade | 5.54% | $0 | N/A | 50 |
| Ally Bank | N/A | $0 | N/A | 48 |
| Gravity Lending | 4.99% | $0 | N/A | 50 |
| Navy Federal | N/A | $0 | N/A | 30 states |
PenFed CU
Best Overall
Trusted Company Reviews Rating Score for PenFed CU: 9.2
Review
PenFed CU offers a range of financial products and services, including refinance loans with attractive interest rates. That said, the credit union isn’t available to everyone, as it’s limited to military members, their families, and civilians with connections to certain nonprofit and government organizations. PenFed offers competitive rates, but its credit score requirements are tighter than with other lenders, and it charges a stout late payment fee.
About
PenFed has been in business for over 90 years. The Virginia-based lender offers basic banking services, along with a range of lending products, such as mortgages and credit cards. New car buyers may also have access to the credit union’s car-buying service, which aggregates pricing and may also result in a better deal. That said, PenFed’s best rates are reserved for people using the car-buying service.
Features and Benefits
PenFed’s loans might not be available to everyone, but it has a lot to offer for those who qualify. Its rates are competitive, and it offers a range of financing options.
- Offers a robust car-buying service
- New and used car loans are available
- Membership and a bank account are required
- Charges up to a 20% fee for late payments
- The best rates are reserved for borrowers with the best credit scores
- Borrowers may be eligible for PenFed payment relief or debt protection services
Why We Chose
We chose PenFed for its competitive rates and wide range of loan products. While its credit score requirements are stricter than those of other lenders, those who qualify for the best rates can save thousands over competing loans.
Pros and Cons
Pros
- Wide range of loans available
- Low rates for qualified borrowers
- Payment protection programs may be available
Cons
- Substantial late fees
- Stiff credit score requirements make it hard to get the best rates
- Not available to everyone
| Best Interest Rate Available (subject to change) | Fees (origination, transfer, etc | Minimum Credit Score for Approval | Number of States Available |
| 1.14% | $0 | N/A | 50 – plus Puerto Rico, Guam, and some military bases |
Upgrade
Best for: Strong customer service
Trusted Company Reviews Rating Score for Upgrade: 9.1
Review
Upgrade offers strong customer service, no prepayment penalties, and a fast prequalification process that lets borrowers view rates without a hard credit inquiry. Like Gravity, Upgrade relies on lending partners to issue loans, and it handles the interface and customer service.
About
Upgrade is a young company with around 11 years of experience under its belt. Based in California, Upgrade is a technology company that acts as a marketplace for lenders. It operates in all 50 states plus Washington, D.C., and has an A+ rating from the Better Business Bureau.
Features and Benefits
Upgrade only offers refinancing loans for automobiles, but that focus has created quite a few compelling benefits. Outside of cars and trucks, Upgrade also ranks high on our list of the best personal loan providers.
- Does not charge prepayment penalties
- Rates are available without a hard credit check
- Upgrade’s customer reviews are among the best in the industry
- Borrowers must owe at least $5,000 to qualify
Why We Chose
We chose Upgrade for its stellar customer service reviews and easy application process. It discloses rates without a hard credit check, making it one of the rare exceptions in the industry, and it has a strong rating from the BBB. At the same time, borrowers needing a loan that isn’t for refinancing will have to look elsewhere.
Pros and Cons
Pros
- Easy prequalification
- Rates are available up front
- Many positive customer reviews
- No auto refinance fees
Cons
- Vehicle requirements may be too strict for some borrowers
- Upgrade doesn’t offer new auto purchase lending
Read Full Review
Check Your Rate with Upgrade
| Best Interest Rate Available (subject to change) | Fees (origination, transfer, etc | Minimum Credit Score for Approval | Number of States Available |
| 5.54% | $0 | N/A | 50 |
Ally
Best for: Fast prequalification
Trusted Company Reviews Rating Score for Ally: 9.0
Review
Ally offers a quick and easy prequalification process that happens completely online and does not require a hard credit hit. The bank also gives borrowers the actual interest rates and monthly payments after prequalification, and allows co-borrowers. At the same time, many borrowers complain about slow funding times, and Ally does not operate in all 50 states, leaving people in Nevada, Vermont, and the District of Columbia to find other lenders.
About
Ally Bank is one of the youngest companies on this list, with just over 20 years in business. It’s based in Pennsylvania and counts major automakers among its financing partners. Ally offers refinancing, lease buyouts, and vehicle purchase loans, though some of its products are limited to being offered by dealer finance departments.
Features and Benefits
Ally has a range of products and services that could make it a great lender for your needs.
- Borrowers can prequalify with no hard credit check
- Loan terms and payment information are available after qualifying
- Does not operate in Washington, DC, Nevada, or Vermont
- Robust online customer service includes chat and other options
- Does not list rate, credit score, or other information up front
Why We Chose
We chose Ally for its strong customer service, reasonable fees, and competitive rates. Its prequalification process is also one of the quickest and easiest around, letting borrowers know almost immediately if they qualify. Additionally, the bank displays actual interest rates and payment information, giving borrowers an exact idea of their monthly expenses.
Pros and Cons
Pros
- Fast prequalification with no hard credit check
- Actual payment and rates displayed after qualification
- Competitive rates
Cons
- Not available in all 50 states
- Loan funding can take weeks
- Rates are not available until after the prequalification
| Best Interest Rate Available (subject to change) | Fees (origination, transfer, etc | Minimum Credit Score for Approval | Number of States Available |
| N/A | $0 | N/A | 48 |
Gravity Lending
Best for: newer car refinancing
Trusted Company Reviews Rating Score for Gravity Lending: 9.0
Review
Unlike most of the lenders on this list, Gravity does not directly loan money to applicants. Instead, it acts as a marketplace that connects lenders and borrowers, though the customer service and application process take place on a Gravity interface. The company offers lease buyouts and other related services, and the entire process happens online.
About
Gravity is a Texas-based company that has only been in business since late 2015. It’s considered to be more of a fintech company than a lender, as it focuses on the technology and experience around the loan application and servicing processes. In addition to loans, Gravity offers vehicle service contracts, depreciation protection plans, guaranteed asset protection (GAP), and vehicle debt protection services.
Features and Benefits
Gravity’s loans are limited to newer vehicles, but its online services are hard to beat in the industry.
- Vehicle must be ten years old or newer to qualify
- Loans come with a minimum amount of $10,000
- Allows borrowers to add or remove co-borrowers
- Borrowers can complete the entire application process online
- Does not require a hard credit check for prequalification
Why We Chose
While Gravity’s loans are limited to newer vehicles, we chose the company for its robust online services and easy application process. It lets borrowers prequalify without a hard credit check, and Gravity does not charge fees, making its loans better for people looking to save some money.
Pros and Cons
Pros
- No hard credit check for prequalification
- Gravity’s online services are hard to beat
- No origination or other fees
Cons
- Strict limits on the vehicle’s age and value
- Borrowers can’t see rates until they apply
| Best Interest Rate Available (subject to change) | Fees (origination, transfer, etc | Minimum Credit Score for Approval | Number of States Available |
| 4.99% | $0 | N/A | 50 |
Frequently Asked Questions
These are some of the most common questions surrounding auto refinancing.
Refinancing an auto loan makes sense for people who suffer from high payments and interest rates because it can essentially “reset” the loan under new terms. That said, there are downsides when refinancing, including a hard credit check and the potential for paying more in interest over time, so it’s important to carefully consider your options before signing on the dotted line.
In most cases, the answer is yes. As long as your credit history and vehicle meet the bank’s requirements, you should be able to refinance with your existing lender. That said, it’s often a good idea to shop around to explore other lenders’ rates, as you could save money over the life of the loan with a lower rate and more favorable terms, such as more relaxed loan-to-value (LTV) requirements.