Transparent, reliable service and competitive interest rates are among the hallmarks of the best auto refinance companies. Current auto refinance interest rates using refinance car loan calculators have increased marginally to 5.36%, borrowers can still save $100+ a month on average, according to RateGenius’ November Auto Refinance Rate Report. Taking out a new loan to pay off an existing car loan is known as refinancing. Getting a better interest rate, a lower monthly payment, or cash from a refinance could make refinancing your car loan a smart move.
I-Lending car loan refinancing provides a comparison site where you can find rates on just about any financial product, including refinancing auto loans. The company provide a really good Auto Refinance Rates comparison tool (refinance car loan calculator.) that lets you enter your zip code, loan amount, and estimated credit score to find potential auto refinance offers with terms between 36-72 months (with several offers for each term). The company also has a customer service team to help borrowers answer any questions they might have regarding the lenders they might be considering.
Capital One Auto Finance and New Roads are the best choices for people with bad credit
These firms provide refinancing options to customers with a poor credit history, which makes them stand out.
New Roads is described in more detail here.
- The New Roads auto loan is not available in all states – it is currently available in 30 states.
- New Roads accepts applications from people with less-than-perfect credit, such as those who have filed bankruptcy or had a repossession on their credit reports.
- New Roads may be able to refinance your loan even if you owe more than the value of your car. If you want New Roads to refinance your auto loan, you need to have made twelve monthly payments on the loan. In addition, your current loan balance cannot exceed 120% of your car’s wholesale value. Get more info on refinance car loan calculator.
- Vehicles must be newer than 2010 and have fewer than 80K miles. Most other lenders require higher mileage requirements.
Considerations for auto refinance loans.
A refinance of your auto loan might be a good choice if your credit has improved since you took out your current auto loan.
If your current car payment is too high, avoid lenders that offer lower rates by extending your loan term instead of cutting your monthly payment. Throughout your loan, you’ll pay more in interest if you choose a longer-term and the same interest rate. You’re also more likely to end upside down on your loan if your loan term is longer.
Be sure to compare your loan options to find a loan with better terms that fits your financial goals and budget. That is true no matter what type of loan you take out.