Best auto refinance lenders of June 2026

Paying for a car has become increasingly expensive: In the first quarter of 2026, the average loan payment for a new car sped past $800 for the first time.

If you're having trouble making payments, refinancing your car loan can get you a better rate or change your term. If rates have dropped or your credit score has improved, a refi can save you a lot.

CNBC Select has named the best lenders for auto refinancing, based on rates, flexible credit, comparison shopping and other factors. For more on how we made our selections, see our methodology.

Who's this for? PenFed's refinance rates for a 36-month loan go as low as 4.19% APR for new cars and 4.79% for used cars with more than 7,500 miles. That's much lower than many competitors.

Standout benefits: PenFed offers financing up to 125% of the loan amount and loan terms of up to seven years. Unlike some credit unions, PenFed's membership requirements are fairly lax — just open a savings account with a $5 deposit.

Who's this for? While other lenders start at 600, iLending will approve refinancing for borrowers with a 560 FICO Score. Its other credit requirements — six months of credit history and one trade line or open credit account — are also more lenient.

Standout benefits: iLending will approve refinancing for vehicles that are up to 10 years old with 150,000 miles on the odometer.

Who's this for? Online marketplace myAutoloan offers competitive rates and up to four quotes for each approved applicant. You'll need a strong credit profile: MyAutoLoan lenders are looking for a 600 score or higher and at least three years of credit history.

Standout benefits: myAutoloan can give you a decision in just a few minutes and fund your refi loan the next business day.

Who's this for? Gravity Lending doesn't charge origination fees, saving you up to 2%, and it doesn't have a prepayment penalty, either. The only fees you'll pay are those required by law, like title fees.

Standout benefits: Gravity Lending borrowers can delay making their first payment for up to 90 days.

Who's this for? While many lenders cap loan terms at 72 months, Capital One approves terms of up to 84 months.

Standout benefits: You can get prequalification with no impact on your credit score and current Capital One customers can have application fields prefilled. Capital One doesn't charge a prepayment penalty.

Who's this for? Online marketplace Autopay allows you to shop for refinancing loans from more than 220 banks and credit unions. It claims borrowers can cut their rate by up of 4% and save more than $1,400 a year.

Standout benefits: Autopay offers cash-back refinancing with a $12,000 limit. Borrowers can delay payment for up to 45 days.

Auto refinancing is when you apply for a new auto loan that pays off your old loan; however, the new loan comes with new terms — ideally, a lower interest rate and lower monthly payments. This is typically why refinancing is considered a way to save money on your car loan.

To get a lower interest rate through refinancing, make sure you apply with a higher credit score. Lenders see applicants with lower credit scores as less creditworthy. That doesn't mean you'll be outright rejected for a refinanced loan, but it may mean higher interest rates.

Refinancing your auto loan is a good idea if you purchased your car when interest rates were higher and there's now an opportunity to snag a lower rate. A lower interest rate often means lower monthly payments, so it can also be a good idea if you want to free up some money in your budget.

Again, though, this works if you've substantially increased your credit score.

On the flip side, refinancing may not make sense for you if you've already had your loan a long time and you're really close to paying it off. You're better off staying the course rather than taking out a new loan with entirely new terms.

Refinancing your auto loan can lower your monthly payment, but it's not always the right move. Here are some steps to consider first:

Check your current loan

Investigate your current loan terms before refinancing. Look at your monthly payment and interest rate, as well as the remaining loan balance and how much more you have left in your term.

Check your credit score

Your credit score will be a major factor in what rate and terms you can qualify for. If your score has increased since you signed your original loan, you're probably a good candidate for refinancing.

Check your car details

Most lenders require cars to be under 10 years old and have fewer than 150,000 miles. Look up your car's value — if your loan balance exceeds your car's value, your loan could be considered "underwater," which could lead to issues refinancing. Check your car's value with a site like Kelley Blue Book.

Get your documents together

You'll need to present some documents when applying for refinancing:

• The name of your current lender and the loan payoff amount
• Last year's W-2 or current pay stubs that confirm your income
• Documents with your name and current address, like utility bills
• Your driver's license
• Proof of full coverage auto insurance
• Your vehicle's VIN number, make, model and year

Compare offers

Before you settle on a lender, apply for pre-qualification with at least three lenders. You can also use an auto loan marketplace like myAutoloan and Autopay, which provide multiple offers all at once.

Look for the lowest interest rate and the shortest loan term. Also, pay attention to any origination fees and other upfront charges.

Finalize your loan

Once you find the loan you want, read the terms carefully and sign the documents.

You should consider refinancing your auto loan if:

• You've raised your credit score: When your score increases, you typically qualify for better rates.
• Rates have gone down: If you bought your car a few years ago, check whether the interest rate you have is higher than what's available now.
• You're still early in your loan: If you're still a way from paying off your auto loan, it may make sense to refinance, since lenders front-load interest payments. However, if you're in the home stretch of paying off your auto loan, you might want to avoid refinancing due to the interest.
• You can't handle your monthly payments: If your payment is so high that you're missing payments or facing repossession, refinancing could help you get back on top of your payments, keep your car and avoid damaging your credit score.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every auto loan list is based on rigorous reporting by our team of expert writers and editors. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

To find the best auto refinance loans, CNBC Select analyzed more than 10 auto lenders, looking primarily at:

• Loan sizes: The lenders we selected offer a wide range of loan sizes.
• Loan terms: Each lender provides multiple terms to spread out payments over time.
• Credit requirements: Lenders with more flexible minimum credit score requirements were favored. We also prioritized lenders that allow for co-signers or co-borrowers.
• Prequalification: We favored lenders that offered a prequalification process, letting you get an estimate on the loan terms you can expect without affecting your credit score.
• Online user experience: We favored lenders that created an easy-to-navigate online experience, for both preapproval and loan management later.
• Fees: We prioritized lenders that don't charge an origination fee, application fee or prepayment penalty.
• Customer service: We considered weekend and evening customer service hours, an online chat feature and a mobile app.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.