Best Auto Refinance Rates and Loans of April 2026

Read More: How Soon Can You Refinance a Car Loan?

When to reconsider auto loan refinancing

Refinancing is not always a good financial move. Consider keeping your current loan in these situations:

• Interest rates haven’t dropped: Refinancing is beneficial when you can save on interest, so it might not make sense if rates aren’t significantly lower. 
• Lower rates are available only on longer loan terms: Choosing a longer repayment term can reduce monthly payments but increase total borrowing costs. 
• Your credit score has fallen: Higher credit scores typically unlock lower interest rates. You might not qualify for the best terms if your score hasn’t improved since you applied for your original loan. 
• Estimated fees outpace potential savings: Review applicable fees and compare them with estimated interest savings to evaluate value.

Where can you refinance a car? 

Many lenders offer auto loan refinancing. Comparing rates, fees and vehicle limitations can help you secure competitive terms.

• Banks: Traditional banks frequently offer auto refinance loans. Some even provide rate discounts to existing customers with qualifying bank accounts or other products.  
• Credit unions: Credit unions are another good option for auto refinance loans, though you generally must be a member to qualify. 
• Aggregator sites: Some online aggregators let you compare estimated rates from multiple lenders with a single prequalification form. It typically doesn’t impact your credit score until you accept a loan offer.

Note that some lenders do not refinance their own auto loans. 

How to refinance a car loan

Follow these steps to refinance your car loan:

1. Review your current loan: Check your loan payoff amount (which might be different from your current balance), terms and interest rate.
2. Verify your car’s value: Kelley Blue Book or Edmunds can give you an idea of how much your car’s value. The lender will have its own appraisal, but you can prepare ahead of time. 
3. Check your credit: Review your credit report for errors and check your credit score to see if it has improved. You can also use this information to understand potential interest rates.
4. Gather documentation: To apply for a refinance, you need information about your car, including your vehicle identification number, registration and proof of insurance. You also usually need to provide bank statements and pay stubs as well as your Social Security number and other personal information. Have that information readily available to streamline the process.
5. Get multiple quotes: Many lenders will provide a quote by performing a soft credit check. Compare three to five lenders with vehicle criteria you meet.
6. Complete your loan application: Prequalification doesn’t guarantee approval; you need to formally apply. A hard credit pull, which affects your credit slightly and temporarily, is generally part of the process. If you’re approved and you accept the terms, sign the documents.
7. Pay off your old loan: The lender will pay off the old loan directly or send you money to do so. Either way, you begin making payments on your new loan.

Can you refinance a car loan with bad credit? 

You can refinance a car loan with bad credit, but you might not qualify for the lowest rates. Lenders usually reserve the best loan terms for applicants with good to excellent credit. Score requirements can also restrict borrowing options.

Refinancing might be worth it if your new rate is lower than your old one or you need a longer loan term. However, waiting to refinance until your credit score improves can maximize savings. 

How Buy Side rates the best auto refinance loan rates

We analyzed hundreds of data points from more than 30 lenders and assigned ratings on a scale of 1 to 5 stars to create a list of auto loans that cater to different preferences. We assigned points based on weighted factors. Each factor was weighted based on our assessment of its value to consumers, using publicly available information and the expertise of Buy Side team members. Our best auto refinance lenders are our top-rated providers with advertised rates starting below 7%. Learn more about how we rate auto loans based on data-driven methodologies to maintain our editorial independence.