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See Top Auto Loan Refinance Rates

Compare your current loan against today’s rates and see if you can save.

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Finding refinancing for your car loan is easy with Lantern



Provide some details on your current car loan and search for auto refinance offers. You can find prequalified rate offers within minutes.


Compare rates, payments, and more. Whether your goal is to lower your rate, monthly payment, total amount paid, or all three, see what you qualify for and select the best auto loan refinance offer for you.

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How Car Loan Refinancing Works

Essentially, auto loan refinancing is taking out a new loan to pay off your existing car loan, ideally with better terms. Depending on individual financial situations, applicants could qualify for lower car loan interest rates through refinancing — which could mean lower monthly payments and saving money in the long run.   When refinancing car loan debt, you may secure a new loan with better car loan rates or even a lower monthly payment. Comparing rates is important, because it helps you better understand which are your best auto loan refinance options. A good car loan refinance offer should align with your goals, whether it’s saving on your interest rate, monthly payment, or overall. Here’s an example of what an auto refinance may look like: Sam took out a car loan in late 2020. At the time, Sam had a low income and credit score, plus a fair amount of debt. This financial situation resulted in an interest rate of 16.56% for a subprime borrower on a used car — higher than the national average of 8.43% for used cars back then. Since purchasing the car, Sam’s income has risen, his debt has shrunk, and his credit score has improved. As a result, Sam thinks he may qualify for good interest rates today. Seeking the lowest auto refinance rates, Sam decides to investigate car loan refinancing by:
  1. Setting goals for the new loan, such as an improved auto loan refinance rate.
  2. Researching online and brick-and-mortar lenders, including his current lender (refinancing car loans with the same lender is possible), and inquiring about possible terms.
  3. Self-reporting information to preferred lenders to see what prequalifying auto refinance rates look like (if available).
  4. Reading the fine print for preferred potential lenders to make sure all terms are clear.
  5. Applying to refinance the car loan with a preferred lender.
Given Sam’s income, debt-to-income ratio (DTI), and credit score improvements, a lender may offer him a loan with more favorable auto refinance rates and terms. In terms of when to refinance your car loan, you may submit an application when you’re able to find the right refinance car loan for you. Some of the best auto refinance companies may offer solid car loan refinance best rates that are right for you. Remember: A prequalified offer for refinancing car loan debt repayments may not be identical to the final one because the prequalification doesn’t include a hard credit check.

When to Think About Refinancing a Car Loan

  • Car loan interest rates have dropped in general
  • You realize your current loan is not right for you
  • You’re ready to check rates and prequalify auto refinance shop online
  • You need a lower monthly payment

Required Information for Refinancing a Car Loan

When you submit an application to refinance a car loan with a new lender, you may need to provide information proving your identity and car ownership. Some of these documents and details may include:
  • Driver’s license
  • Proof of residence (e.g., a utility bill)
  • Income verification (e.g., a pay stub)
  • Car registration details
  • Your Social Security number
  • Your credit score (via a credit check)
  • Insurance documents
  • 10-day payoff amount from the current lender
  • Limited power of attorney allowing vehicle title modification
  • Evidence of consistent, up-to-date payments on your current loan
Note: This list is relatively extensive and lenders may require all of this information. Some auto refinance lenders may initially ask for a few documents and eventually request additional information to verify details. The best auto refinance companies may deny your application if you cannot provide adequate proof of identity or proof of current financing. Applicants with excellent credit and sufficient income may qualify for the lowest auto refinance rates.

Tips for Comparing Car Loan Refinance Rates

  • Get prequalified auto refinance offers online and shop around
  • Compare rates across lenders to find the right refinance car loan for you
  • Beware of any upfront fees and finance charges

Refinance Your Car Loan and Lower Your Monthly Payments

There are benefits and drawbacks to refinancing an auto loan, no matter your situation. You should weigh these carefully when deciding whether refinancing is right for you. Remember, none of the pros and cons of refinancing a car loan are guarantees. Every situation and every lender is different. The best company to refinance auto loan debt for some borrowers may not be the best auto loan refinance company for you. This is why shopping around and comparing used car refinance rates is so important. Potential benefits of refinancing an auto loan include:
  • Lower interest rates: If your financial and credit situations have significantly improved since you took out the original loan, you could qualify for a lower interest rate. As mentioned earlier, applicants with excellent credit and sufficient income may get approved for car refinance lowest rates.
  • Budget-friendly monthly payments: Refinancing your loan may result in lower payments each month if you decide to extend your loan term. 
  • Cash for other expenses: If you have positive equity (i.e., your car is worth more than your current loan amount), you may be able to borrow against that equity with cash-out auto refinancing. This means you can take out more than what you currently owe on your car and use that additional loan money to pay for other expenses.
Potential downsides of refinancing an auto loan include:
  • Lowering your credit score: A lender may pull a hard credit check before making an official auto loan refinancing offer. The hard credit check may hurt your credit score whether or not you accept an offer. Your credit score may take a slight hit even if you get approved for car loan refinance best rates.
  • Paying more in the long run: While monthly payments may be more budget-friendly in the short term, refinancing a car may entail a longer loan term. As a result, lower monthly payments can result in paying more in interest over the life of the loan.
  • Possible DTI impact: Cash-out auto refinancing increases your debt burden, which can negatively impact your DTI and make it harder for you to qualify for other lending products.

Reasons refinancing your car loan could be a good idea

If your financial situation has improved since taking out your car loan, you could qualify for a better rate. Improving a credit score, landing a better job, or paying off some other debts may cause a lender to consider an applicant as less of a risk than when they financed a car originally. Qualifying for a more favorable rate now could mean saving money over the life of the loan.Ready to refinance your auto loan? Check your rate for free at Lantern by SoFi.


Can I refinance a car loan with bad credit?
How do I know which lender is the best for my auto loan refinance?
Does checking my rate hurt my credit score?
What information do you need about my vehicle?
Can I refinance with a cosigner?
Who has the best auto refinance rates?
Can I qualify for auto loan refinancing at a lower interest rate?
What happens if I extend my car loan term?