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All About Used Car Refinance Rates

3D illustration of a rubber stamp with the word refinance over a mortgage lender rate sheet. Debt consolidation and debt or loan refinancing concept.

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Buying a pre-owned vehicle is generally more affordable than buying a brand-new car, but the downside is that interest rates for used used cars tend to be higher. The good news is that there are plenty of options for refinancing a used-car loan, and here’s more information on used car refinance rates.

Can I Finance a Used Car?

When you first purchase a used car, you can get financing for it. However, lenders generally charge higher interest rates with shorter term lengths than those for a new vehicle. Lenders view a used car as a higher risk, so they charge more for interest rates than when financing a new vehicle.

What Is a Used Car Refinance?

If you have financed your used car and would like to save money or aren’t happy with your interest rate, monthly payments, or terms of your current loan, consider refinancing. Once you’ve settled on a lender you’re comfortable with, signed the application, and gotten approval, the lender will pay off the existing loan, and you’ll begin payments on the new loan.

The lender will look at the age and mileage of the car along with your credit history to determine the Annual Percentage Rate (APR). The newer the car and the better your credit score, the lower the interest rate will be. Depending on the lender, a used car from 2020 with over 30,000 miles will have a higher rate than a late model used car from 2021 and later with under 30,000 miles. Also, the longer the loan’s term, the higher the interest rate.

Why Should I Refinance My Used Car?

There are several reasons to refinance a used car loan. Consider refinancing when your initial used car loan has a high interest rate with a long-term payoff, you’re struggling to make your payments, or if your credit score has improved. When you refinance, you can potentially:

  • Lower your interest rate
  • Decrease your monthly car payment
  • Shorten or lengthen the time to pay the used car loan off

Is there a Reason Not to Refinance My Used Vehicle?

There are a few reasons why you should not refinance your car loan. You should keep your current loan if:

  • The original loan has a prepayment penalty
  • Your credit score has not improved
  • You have a good loan already
  • Your car is old with high mileage
  • Your current loan is almost paid off

What Should I Look for When Refinancing?

Whether you go directly to a financial institution, use your current lender, or work with a brokerage to help you find the right lender, look for a company with an excellent reputation that’s transparent about their fees, documents, and requirements. If you have a good credit score ranging from 670 to 739 and strong credit history, you’ll have more offers with better rates.

Some lenders require you to have gap insurance on your used car, so you’ll want to ask if this is required in order to refinance your used car. Generally, if the lender requires gap insurance, they can provide one such policy for you.

What Are Current Used Car Refinance Rates?

Used car refinance rates vary by lender, your credit history, and current interest rates. Several financial service providers, like Bankrate and NerdWallet, feel the following lenders top the chart based on the APR, loan amounts, loan initiation fees, efficiency, and reputation.


LightStream offers fast funding with an easy-to-use website and has no hidden fees.

  • Loan amounts: $5,000 to $100,00.


This company compares lenders so you can find the perfect rates no matter what your credit score.

  • Loan amounts: $2,500 to $100,000


Caribou has a robust online presence and makes comparing offers from multiple lenders a breeze.

  • Loan amounts: $10,000 to $175,000


Upstart is helpful for borrowers with bad credit who don’t need a large loan.

  • Loan amounts: $9,000 to $60,000


This brokerage firm is ideal for comparing options from multiple lenders.

  • Loan amounts: $5,000 to $100,000

Lending Club

You can apply directly to a lender through this company, which has no origination fees or prepayment penalties.

  • Loan amounts: $4,000 to $55,000


RateGenius finds the best lender for you and makes it fast and easy to apply online.

  • Loan amounts: $12,000 to $100,000

Ally Clearlane

You can refinance your used car or sell your leased vehicle with Ally Clearlane. There’s no need to submit your social security number or have your credit score pulled to see if you pre-qualify for the loan.

  • Loan amounts: $5,000 to $99,000


Tresl offers superb customer support, dedicated financial advisors, and a host of lenders to choose from.

  • Loan amounts: $5,000 to $100,000

OpenRoad Lending

OpenRoad Lending is a member of the American Financial Services Association and will help you find the right loan within one day of applying.

  • Loan amounts: $10,000 to $75,000


myAutoLoan will find you a variety of lenders where you’ll receive up to four offers. Choose your lender, and myAutoLoan will take care of the paperwork to pay off your old loan and get you started on your new one.

  • Loan amounts: $5,000 to $100,000

This is a list of some of the top-rated used car refinance options for you to choose from. Keep in mind that rates can change any day, so when you find a lender with rates and terms you’re comfortable with, don’t hesitate to apply for your new loan.

Refinancing your used car loan makes sense when you want to lower your interest rates or monthly payments. You’ll want to shop for a lender that will work with your budget to get the best rates for your used car refinance loan. Being prepared with documents like proof of income, identification, and your car insurance policy can help streamline the used car refinance process.

FIXD Research Team

At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.

We’re here to help you simplify car care and save, so this post may contain affiliate links to help you do just that. If you click on a link and take action, we may earn a commission. However, the analysis and opinions expressed are our own.


About the Author

FIXD Research Team

FIXD Research Team

At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.

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