Best Auto Refinance Rates Full Updates in 2023
Car Approve, PenFed Credit Union, myAutoloan, and Consumers Credit Union provide the best auto refinance rates.
You don’t have to continue paying the high interest rate on your current auto loan. Over the course of your loan, saving even just half a percentage point can amount to hundreds of dollars, if not thousands. You may save a lot of money by using the finest car refinancing rates.
The Guides Auto Team examined the top lenders in the auto loan market in-depth to determine which provide consumers with the most value. Our experts identified these organizations as the top lenders offering the best car refinance rates after examining interest rates, industry rankings, and client evaluations.
Best rates for auto refinancing
Finding the greatest loan involves more than simply the annual percentage rate, even though the finest car refinance rates can help you save money (APR). Our crew also considers the costs, penalties, and accessibility of each loan while rating them.
Based on how well they performed in the refinancing car loan category, these companies are ranked. However, the total scores are determined by how well each lender performs in relation to all vehicle loan types, not just refinancing.
Auto Approve does not provide financing for the purchase of new vehicles because it focuses on refinancing and lease buyouts. Auto Approve has one of the finest auto refinancing rates, with a starting APR of 2.25%.
Auto Approve offers various advantages despite not having the exact lowest APR among the lenders in this assessment. When you can pay off your loan early, for instance, you might save even more money because the lender doesn’t impose a prepayment or application fee. Auto Approve does, however, levy a loan origination fee.
With Auto Approve, you also have some flexibility because borrowers can select payment durations of 12 to 84 months. If your credit score isn’t the best, Auto Approve may still be a wise decision. Its 580 minimum score is lower than what many lenders need.
Customers and business associations in the sector highly regard Auto Approve. The refinance lender is accredited by the Better Business Bureau and has an A rating (BBB). Additionally, it has received positive consumer reviews, earning 4.4 out of 5.0 ratings on the BBB and 4.7 out of 5.0 stars on Trustpilot.
The majority of Auto Approve reviews are favorable. Customers constantly praise the expert staff and the quick and easy loan application procedure. However, there are some unfavorable assessments about the lender. Misunderstandings concerning payments and costs are frequent in poor customer evaluations, coupled with communication problems.
In regards to these unfavorable ratings, our team contacted Auto Approve but got no answer.
Credit Union PenFed
PenFed Credit Union normally provides introductory APRs that are competitive. To access any of PenFed Credit Union’s financial products, though, you must be a member. You must work for the federal government, be a member of the military, or donate to one of a number of carefully chosen organizations in order to accomplish that.
PenFed has a higher minimum credit score requirement than some of the other lenders on our list, at 610. Therefore, not all borrowers may be able to take advantage of the lender’s cheap rates. The credit union also has a history of imposing steep penalties for missing or late payments.
Reviews of PenFed Credit Union
Due to its A+ rating from the BBB, PenFed Credit Union has a solid reputation in the sector. That contrasts with the lender’s client rating, which is about 1.2 out of 5.0 stars on the website. PenFed, however, has good consumer relations on other websites. Based on more than 1,000 reviews, it has an overall Trustpilot rating of 4.6 out of 5.0.
Positive reviews for PenFed frequently highlight the lender’s cheap rates and simple loan application procedure. But delayed loan processing timeframes are frequently cited as a cause in complaints clients make about PenFed.
PenFed Credit Union was contacted by our staff for a statement on its unfavorable ratings, but we did not hear back.
You may browse around with individual lenders to find the best refinancing auto loan rates or utilize a loan marketplace to compare many lenders at once. Consider myAutoloan if the latter strikes you as the preferable strategy.
You must provide some personal data on the myAutoloan website before you can start receiving refinancing options. Rates as low as 1.99% APR can be obtained with this strategy. Higher credit scores qualify for the best rates, but customers with lesser scores can still locate lenders on the myAutoloan marketplace. One of the lowest minimums our experts discovered is 575, yet you may still obtain refinancing auto loans with that score.
The business also provides a useful loan calculator that you may use to compute your monthly loan payment depending on the APR, period, and loan amount.
MyAutoLoan has received an A+ rating and certification from the BBB, which attests to the business’s solid standing in the sector. MyAutoloan doesn’t have many reviews on the BBB, most likely because it is a marketplace rather than a direct source of refinancing auto loans. On Trustpilot, it has received 4.2 stars out of 800 reviews, nevertheless.
Customers frequently highlight how simple it is to receive several loan offers through the marketplace in these good evaluations. Customers who submit negative reviews for myAutoLoan frequently point to the numerous lender contacts they receive as the cause.
MyAutoloan was contacted by our staff for a reaction to its unfavorable evaluations, but we never heard back.
Consumers Credit Union
Consumer Credit Union offers some of the finest auto refinance rates, with beginning APRs of 3.49% for new cars and 3.74% for used cars.
Consumers Credit Union provides a variety of alternatives for loan amounts and term lengths. Loans between $5,000 and $150,000 are available with maturities as long as 84 months. As a result, consumers may locate car refinancing loans for a range of automobiles and customize the loan terms to suit their needs.
To acquire a loan from Consumers Credit Union, you also need to be a member. It’s easy to join the credit union; all you need to do is pay the Consumers Cooperative Association $5, supply proof of identity, and offer either your Social Security number or a tax identification number (TIN).
Reviews of Consumers Credit Union
Consumers Credit Union has a solid reputation in the market despite being a smaller organization than some of the other lenders in our assessment. It boasts an A+ rating and certification from the BBB. However, compared to businesses with bigger client bases, this one has fewer online customer reviews because of its modest size.
Members who have left good evaluations on the website mention how much they value being a part of a member-owned organization rather than being a client of a commercial lender. They also speak favorably about their borrowing experience. People who complain about their interactions with the credit union frequently mention application wait times and technological issues.
Consumers Credit Union was contacted by our staff for a reaction to these reviews, but we did not hear back.
What Influences Your Auto Refinance Rates
Refinance auto loan lending rates are based on a variety of information about you and your car. The following are some of the major factors that affect the amount you’ll spend to refinance your car:
Your credit score and credit history have a big impact on the rates you may get. The greatest car refinance rates will be available to those with good credit ratings. Higher interest rates will apply if you have a low credit score.
Loan length: The longer the loan period, the more the lender will charge in interest. Usually, a lender will give the shortest loan period at the lowest interest rate.
LTV (loan-to-value) ratio Your LTV ratio is the difference between the value of the car and the outstanding balance of your current loan. Your interest rate is likely to be greater the more you owe on a car relative to its worth.
Age of the car: Not all lenders will refinance an older vehicle. If they do, they frequently charge greater prices.
Mileage of the vehicle: Refinance loan interest rates are sometimes higher for automobiles with more mileage.
Lenders often only promote their most attractive interest rates. You’ll most likely receive a higher rate than quoted unless your finances are in excellent shape.
On the phone or online, a lot of lenders provide free quotations. This makes it simpler to identify which lenders actually give you the greatest car refinance rates, as opposed to merely those consumers who are in the best possible financial circumstances.
But keep in mind that some quotations demand a severe credit draw, which can damage your credit. Make sure a quote only calls for a soft credit draw, which has no effect on your credit, rather than a hard credit check. Pre-qualification for loans can also give you a clearer sense of the range of possible rates.
The cost of your loan is not just determined by the interest rate, but it is the most important one. This rate is often given as a percentage. While the phrases interest rate and APR are occasionally used synonymously, they are not the same thing. Your interest rate and other loan fees are added together to create your APR.