How we make this list: we compare pricing pages, product documentation and public user reviews. Ratings come from G2, Capterra or Trustpilot, with the date we checked them.
Key takeaways
- Refinancing a car loan means replacing your current loan with a new one, usually to lower your rate, payment, or term.
- LightStream and SoFi suit borrowers with strong credit who want low rates and no fees.
- Caribou, RateGenius, and Autopay suit borrowers who want lender comparison and help through the process.
- Always compare the total cost, not just the monthly payment, since a longer term lowers payments but raises total interest.
Quick comparison
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The best companies to refinance a car loan
Starting priceSee website
Free planNo
LightStream, from Truist, suits borrowers with strong credit who want a simple, fee-free refinance. It charges no application, origination, or prepayment fees, offers an autopay rate discount, and funds quickly once approved, often the same day. That simplicity suits borrowers who know their credit is strong and want the lowest total cost.
Approval needs strong credit and income, so borrowers with fair credit will likely do better elsewhere, and there is no branch network for in-person help. Rates are quote-based and vary by credit, term, and vehicle. For a strong-credit borrower, LightStream low-fee model is hard to beat.
What we like- No fees
- Fast funding
- Rate discount for autopay
Watch out for- Needs strong credit
- No branch network
Starting priceSee website
Free planNo
SoFi suits borrowers with good credit who want competitive rates plus member benefits such as career coaching, financial planning, and community events. Its online process is smooth, with prequalification that shows rates without a hard credit pull, and autopay discounts lower rates further. That combination appeals to professionals refinancing a car alongside other financial goals.
Best rates need good to excellent credit, and SoFi has no branch network, so help is online and by phone. Rates are quote-based. For a good-credit borrower who values a full financial platform, SoFi is a strong refinance choice.
What we like- Competitive rates
- Member benefits
- Easy online process
Watch out for- Needs good credit for best rates
- No branches
Starting priceSee website
Free planNo
Capital One Auto Refinance suits borrowers who want a large bank behind their loan, with a prequalification tool that estimates rates and a clear online application. Existing Capital One customers benefit from integrated accounts, and the bank scale gives stability that smaller lenders cannot always match. That familiarity suits borrowers who prefer a known bank.
Rates vary widely by credit, vehicle age, and loan amount, so weaker-credit borrowers may see high quotes, and branch help varies by area. For a borrower who wants bank refinancing with a straightforward online process, Capital One is a solid mainstream choice.
What we like- Large bank backing
- Prequalification tool
- Clear online process
Watch out for- Rates vary widely by credit
- Branch help varies by area
Starting priceSee website
Free planNo
Caribou, formerly MotoRefi, is a marketplace that compares refinance offers from many lenders and helps borrowers through paperwork, title transfer, and payoff. That help matters, since refinancing paperwork, including title and lien changes, confuses many borrowers and causes delays. Caribou service suits borrowers who want comparison plus guidance in one place.
Caribou is not a direct lender, so final rates and terms come from partner lenders, and savings depend on which lenders match your profile. For a borrower who wants to compare many offers without applying to each lender separately, Caribou saves time and hassle.
What we like- Compares many lenders
- Helps through paperwork
- Good for saving time
Watch out for- Not a direct lender
- Savings depend on matched lenders
Starting priceSee website
Free planNo
RateGenius operates a large lender network, letting borrowers submit one application and receive offers from many lenders, including credit unions and banks that individuals might not find alone. That breadth helps borrowers with varied credit, since a lender that fits one profile may decline another. The marketplace model also creates competition that can lower rates.
RateGenius is not a direct lender, so final terms, fees, and service depend on the matched lender, and borrowers should compare offers carefully rather than accepting the first. For a borrower who wants the widest lender comparison from one application, RateGenius is a strong marketplace.
What we like- Large lender network
- Single application
- Good for varied credit
Watch out for- Not a direct lender
- Final terms vary by lender
Starting priceSee website
Free planNo
Autopay, formerly a refinance marketplace under different branding, compares refinance offers from a lender network and provides concierge help through application, approval, and title transfer. That guidance suits borrowers who find refinancing paperwork daunting, and its network covers a range of credit levels, including borrowers rebuilding credit.
As a marketplace, Autopay does not set final rates itself, so terms vary by matched lender, and service quality after matching depends on that lender. For a borrower who wants comparison plus hands-on help, Autopay is a practical choice.
What we like- Compares lenders
- Concierge help
- Good for all credit levels
Watch out for- Not a direct lender
- Service quality varies by matched lender
Starting priceSee website
Free planNo
Bank of America suits borrowers who want a large bank refinance with relationship discounts for existing customers, including preferred rewards members. Its online and branch service covers application help, and its scale gives stability. That bank relationship appeals to borrowers who already bank with Bank of America.
Rates vary by credit, and vehicle age and mileage limits apply, so older or high-mileage cars may not qualify. For a Bank of America customer with a qualifying vehicle, relationship pricing can make refinancing attractive.
What we like- Large bank backing
- Relationship discounts
- Branch and online service
Watch out for- Rates vary by credit
- Vehicle age limits apply
Starting priceSee website
Free planNo
Navy Federal Credit Union suits eligible members of the military community, offering competitive rates and member-focused service that credit unions are known for. Terms are flexible, and its auto refinancing covers a range of vehicles and credit profiles within membership. That member focus often means better service than large banks.
Membership is restricted to the military community, including service members, veterans, and eligible family, so most readers cannot join. Branch access varies by area, though online service covers most needs. For an eligible member, Navy Federal rates and service make it a top refinance choice.
What we like- Competitive credit union rates
- Member-focused service
- Flexible terms
Watch out for- Membership restricted to military community
- Branch access varies
How we chose
We compared vendor pages, product documentation, and public user reviews, and we judged each company on rates, fees, eligibility, process ease, customer service, and lender network breadth. Direct lenders were judged on their own rates and fees, while marketplaces were judged on comparison breadth and help, since the two models differ. We did not claim hands-on testing. Rates are quote-based and vary by credit, income, vehicle, and term, so get personalized quotes. This article is general information, not financial advice.
What to check before you pick
Start with your current loan: rate, remaining balance, remaining term, and any prepayment penalty, since refinancing only saves money if the new loan total cost beats the old one after fees. Compare annual percentage rate, not just interest rate, since APR includes fees, and compare total interest over the full term, not just the monthly payment. A longer term lowers payments but usually raises total interest, which is the most common refinancing trap.
Also check vehicle eligibility, since lenders limit vehicle age, mileage, and loan amount, and older cars may not qualify at all. Check credit requirements, since advertised rates require strong credit, and a soft-pull prequalification shows your real rate without harming your score. Check title and lien transfer, since your new lender must pay off the old loan and record a new lien, a process that takes weeks and needs your cooperation.
A further check matters for timing: refinancing soon after buying a car can be hard, since some lenders require several months of payment history, while refinancing very late in a loan saves little, since most interest is already paid. The sweet spot is usually after a credit improvement, a rate drop, or at least several months into the loan, when savings are still meaningful. Calculate break-even time, meaning how many months of savings repay any fees, and only refinance if you will keep the loan past that point.
Finally, get quotes from at least three sources, including a direct lender, a marketplace, and your current lender, since your current lender may match a better offer to keep your business. Compare offers side by side on APR, term, monthly payment, total interest, and fees, and read the full loan agreement before signing. Avoid rolling extra debt, such as credit card balances, into a car refinance, since that converts unsecured debt into debt secured by your car, risking repossession if you cannot pay.
One more consideration is gap insurance and warranties: refinancing may affect gap coverage and extended warranties tied to your original loan, so check whether coverage continues, needs re-purchase, or can be refunded. A refinance that saves on interest but loses valuable coverage may cost more overall, so confirm coverage status with both lenders before signing.
Frequently asked questions
When is refinancing a car loan worth it?
Refinancing is worth it when the new loan lowers your APR enough to save meaningful total interest after fees, or when it fixes a problem such as a payment you cannot afford. It is rarely worth it very late in a loan, when most interest is already paid, or when fees erase the saving.
Does refinancing hurt my credit?
A hard credit inquiry may lower your score slightly for a short time, and a new loan changes your credit mix and average account age. Rate shopping within a short window, usually 14 to 45 days depending on the scoring model, counts multiple auto loan inquiries as one, so shop quotes together.
Can I refinance with bad credit?
Yes, but rates will be higher, and some lenders may decline. Credit unions and marketplaces such as RateGenius and Autopay cover wider credit ranges, and improving your score before applying, even by a few points, can lower your rate meaningfully.
How long does car refinancing take?
Approval often takes a day or two, while full payoff and title transfer take two to six weeks, during which you should keep paying your old loan until payoff is confirmed. Do not stop payments early, since missed payments harm your credit even during a refinance.
Should I choose a shorter or longer term?
A shorter term usually saves total interest but raises monthly payments, while a longer term lowers payments but raises total interest. Choose the shortest term whose payment you can afford comfortably, since that balance saves the most interest without straining your budget.
What is the difference between a direct lender and a marketplace?
A direct lender such as LightStream or SoFi funds your loan itself, while a marketplace such as Caribou or RateGenius compares offers from many lenders and helps you choose. Marketplaces save comparison time, while direct lenders give a single clear relationship.
Sources we checked (8)
- https://www.lightstream.com
- https://www.sofi.com
- https://www.capitalone.com
- https://www.caribou.com
- https://www.rategenius.com
- https://www.autopay.com
- https://www.bankofamerica.com
- https://www.navyfederal.org
Is your product missing or out of date?
We review this list regularly. Vendors can request a listing, send updated pricing or ask about featured placement.
Shihab Mia · Founder, Rankite
Shihab has 5+ years in B2B and SaaS SEO. He writes Rankite's software buying guides from pricing pages, documentation and public user reviews. More about Shihab.
LightStream
SoFi
Capital One Auto
Caribou
RateGenius
Autopay
Bank of America
Navy Federal