Fees and PenaltiesĮven with the best auto refinance rates, fees and penalties can quickly add up to make a loan far more expensive than it first appeared. In addition, lenders often charge higher interest rates on longer loan terms. But even at the same rates, you’ll pay more in interest over the lifetime of that loan. Longer loan terms will have smaller monthly payments. Most lenders offer a range of terms between 12 and 84 months, though some offer shorter and longer terms. Getting pre-qualification for loans can also help you get a better idea of where your rates may fall.ĭepending on your financial situation, you may be able to choose how long your repayment term is. Check whether a quote requires a hard credit inquiry or just a soft credit pull, which doesn’t impact your credit. However, note that some quotes require a hard credit pull, which can negatively impact your credit. This makes it easier to see which lenders truly offer the best auto refinance rates for you and not just to borrowers in the most ideal financial situation. Many lenders offer free quotes over the phone or online. Unless you are in peak financial shape, you’ll probably end up with a higher rate than advertised. Lenders usually only advertise their most competitive rates. Vehicle mileage : Higher-mileage vehicles often come with higher interest rates on refinance loans.Those that do will often charge higher rates. Vehicle age : Not every lender is willing to refinance an older vehicle.The more you owe on a car compared to its value, the higher your interest rate is likely to be. Loan-to-value (LTV) ratio : Your LTV ratio is the value of the vehicle compared to how much you still owe on your existing loan.You’ll typically find the lowest interest rate for the shortest loan term a lender offers. Loan term : Lenders usually charge higher interest rates the longer your loan term is.A spotty credit history will come with higher interest rates. Borrowers with excellent credit scores will have access to the best auto refinance rates. Credit score : Your credit report is a significant factor in the rates you have access to.Here are some of the main contributors that influence what you’ll pay to refinance your vehicle: Lending rates for refinance auto loans are determined by a number of factors about you and your vehicle. The company also offers a helpful loan calculator that you can use to figure out the monthly payment on a loan based on the APR, the term and the amount borrowed. You can find a refinance auto loan with a credit score as low as 575, which is one of the lowest minimums our team found. The lowest rates are reserved for people with the highest credit scores, but borrowers with lower credit scores can find lenders on the myAutoloan marketplace, too. This approach can yield rates as low as 4.01 % APR. To use myAutoloan’s website, you enter some personal information and wait for refinancing offers to come to you. If the latter sounds like a better approach to you, it’s worth considering myAutoloan. When you look for the best refinance auto loan rates, you can shop around with individual lenders or use a loan marketplace to compare several lenders at once. Loan amounts : $5,000 minimum loan amountĪvailability : 48 states (not available in Alaska or Hawaii)
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