If you’re paying a high-interest rate on your current vehicle loan, you don’t have to stay with it. Even a small percentage point difference in favor of another loan can save you thousands of dollars.

Read on for the top picks if you’re looking for the best companies that refinance auto loans.

What Is Auto Refinancing?

Auto refinancing is the process of taking out a new loan to pay off an existing one. There are many reasons why someone might choose to refinance their auto loan. Still, the most common reason is to secure a lower interest rate. When you refinance your loan, you may be able to lower your monthly payments or pay off your loan faster. You can even reduce the total amount of interest you pay over the life of the loan. You can also use auto refinancing to trade in your current vehicle for a new one. If you’re interested in auto refinancing, it’s important to compare multiple lenders’ offers to ensure you’re getting the best deal possible.

What Are the Best Auto Refinance Companies?

There are many auto refinancing companies to choose from. However, not all of them are created equal. Each one has its own set of pros and cons. Here are some of the best auto refinance companies based on interest rates, customer service, and other factors:

1. Auto Approve.

Auto Approve is a leading online lender that offers auto refinancing to borrowers who don’t have an ideal credit score—its minimum is just 580, which is much lower than the industry average. The company has a starting annual percentage rate (APR) of 2.25%, which is lower than many competitors. Auto Approve also offers a quick and easy application process and no prepayment fees. You can also enjoy some flexibility with Auto Approve as they provide payment terms that go as long as 84 months.

Auto Approve enjoys a robust reputation in the industry, with an A+ rating and almost 4.5 stars out of 5 from the Better Business Bureau. The lending company also has many positive reviews, with clients lauding its professional approach and near-seamless loan application process.

2. PenFed Credit Union.

If you’re a member of PenFed Credit Union, you can enjoy auto refinancing rates as low as 1.79%. The catch is you have to be a member of the military or a related organization (like the National Guard) to qualify. The credit union’s minimum credit score is 610, which is higher than what most lenders require. In addition, PenFed has a quick turnaround time on loan approvals and is known for its excellent customer service. Note, though, that the credit union charges high penalty fees if you pay late or miss out on payments.

Like Auto Approve, the PenFed Credit Union has a robust reputation in the industry, proof of which is its A+ rating from the BBB. It also has an average rating of 4.6 stars on the consumer review website, Trustpilot, based on over 600 reviews.

3. myAutoloan.

When searching for the most reasonable auto refinance loan rates, you may compare several lenders at once by using a loan marketplace. One of the best loan marketplaces around these days is myAutoloan. myAutoloan offers a wide variety of lenders, so you can compare interest rates, fees, and other factors before deciding. All you have to do is input some vital personal data. Then myAutoloan provides multiple refinancing offers, including APRs that go as low as 1.24%. However, note that the lowest rates are usually reserved for those with excellent credit ratings.

myAutoloan also has an outstanding reputation in the industry, with an A+ rating from the BBB. The company is also accredited by Trustpilot, which scored it 4.3 stars out of five. Consumer reviews consistently praise the marketplace’s ability to provide numerous loan offers.

4. Consumers Credit Union.

The credit union has interest rates as low as 1.74% for new vehicles and 2.49% for used ones, making it one of the most competitive lenders in the market. The company offers consumers a lot of flexibility. You can pick between loan amounts as low as $5,000 and as high as $150,000. The payment terms are also flexible, ranging from 12 to 84 months. One caveat, though, is you need to be a member. The membership process is simple as you only need to pay $5 to the Consumers Cooperative Association and provide an ID with your Social Security or tax identification number (TIN).

The Consumers Credit Union boasts an excellent reputation, with accreditation and an A+ rating from the BBB. Reviews say consumers appreciate being in a member-owned group rather than being customers of a lending company.

The Bottom Line

When looking for the best auto refinance companies, it’s essential to do your research. Compare interest rates, fees, and other factors before making a decision. And don’t forget to check out the lenders’ reputations as well. All of the lenders mentioned in this article have excellent ratings from the BBB and positive reviews from consumers.

 

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