In February 2026, auto loan refinancing replaces your existing car loan with a new one at a lower interest rate, potentially shortening the term, reducing monthly payments, or saving thousands in interest. With average refinance rates ranging from about 4.67% to 13.35% (and some lenders advertising below 4%), refinancing is attractive for borrowers with good credit, especially if your current rate exceeds 6–7%.
Rates depend on credit score (excellent 780+ often get sub-5%; fair/poor higher), loan-to-value (LTV), vehicle age/mileage, term length, and lender type (credit unions/banks often lowest; online aggregators for shopping). National averages: new/used refinance around 4.88–7.43% for super prime credit, higher for lower scores (per Experian/WSJ data).
This 2026 guide ranks top lenders and rates based on February 2026 sources like Bankrate, NerdWallet, WSJ Buy Side, CNBC Select, LendingTree, Money.com, Investopedia, and others. Key criteria: starting APRs (with discounts like autopay), eligibility, fees (most $0 origination), terms, and customer reviews. Rates are variable—always prequalify (soft pull) for personalized quotes. Shop multiple lenders; differences save significantly.
Why Refinance Your Auto Loan?
- Lower rates — Drop from 8–12%+ original to 4–6% for excellent credit.
- Save money — Shorter terms pay off faster; longer terms reduce monthly payments.
- Cash-out options — Some allow equity extraction.
- Credit benefits — On-time payments build score.
- Drawbacks — Fees (if any), credit check, potential prepayment penalties on old loan.
Note: Best for loans >$10k with rates > current market. Vehicle must meet lender criteria (age, mileage, value).
Key Factors to Consider
- APR — Includes discounts (autopay 0.25% common).
- Credit Requirements — 580–680+ typical; excellent (740+) for best rates.
- Loan Amounts/Terms — $5k–$100k+; 36–84 months.
- Fees — Usually $0 origination; appraisal rare.
- Funding Speed — 1–30 days (often quick).
- Eligibility — Vehicle year/mileage, equity, income.
Best Auto Loan Refinance Rates & Lenders in February 2026
Standout options from current data:
1. PenFed Credit Union — Best for Low Rates & Overall
CNBC, Money.com, WSJ top. Starting 4.19% APR (new 2025+ models, 36 months); used 4.79%+. Up to $150k. No origination fees.
Pros: Competitive low rates, no fees, strong terms.
Cons: Membership required (easy to join).
Best for: Excellent credit, low rates.
2. Navy Federal Credit Union — Best for Military & Very Low Rates
Navy Federal site. As low as 3.89% APR (new, short terms); used 4.79%+. High limits.
Pros: Lowest starting rates for eligible, member perks.
Cons: Military/veterans/family only.
Best for: Service members/veterans.
3. LightStream (Truist) — Best for Excellent Credit & Large Loans
NerdWallet, Investopedia highlight. Fixed 6.49–15.99% (often low end). $5k–$100k. No fees.
Pros: Transparent, good rates/terms.
Cons: Strong credit needed.
Best for: Large balances, no-fee refinancing.
4. LendingClub — Best Overall & Peer-to-Peer
Investopedia, NerdWallet top. APR 4.49–24.99%. $4k–$55k.
Pros: Competitive, direct payoff.
Cons: Origination fee possible.
Best for: Broad access.
5. Caribou / myAutoLoan — Best Marketplace for Comparing
LendingTree, NerdWallet aggregator picks. Rates from 4.39–28.55%. Multiple lenders.
Pros: One app for quotes, good for shopping.
Cons: Varies by matched lender.
Best for: Finding best personal offer.
6. iLending / Autopay — Best for Bad Credit & Accessibility
LendingTree, CNBC mentions. Low min. credit (~560–580). Competitive rates.
Pros: Lenient eligibility.
Cons: Higher rates possible.
Best for: Fair/poor credit.
7. Capital One / Bank of America — Best Big Banks
WSJ, Investopedia picks. Competitive rates (often mid-5%+). Nationwide.
Pros: Reliable, branches/perks.
Cons: Stricter credit.
Best for: Existing customers.
Other notables: Gravity Lending (service), U.S. Bank, Consumers Credit Union (low rates for members).
Comparison Table: Top Auto Refinance Rates February 2026
| Lender / Option | Starting APR (Approx.) | Loan Amounts | Terms (Years) | Min. Credit Score | Key Features | Best For |
|---|---|---|---|---|---|---|
| PenFed Credit Union | 4.19% (new) | Up to $150k | Up to 7 | Good+ | No fees, competitive | Low rates overall |
| Navy Federal | 3.89% (new) | High limits | Up to 8 | Varies | Military perks | Veterans/service members |
| LightStream | 6.49% | $5k–$100k | Long | 660+ | No fees, transparency | Excellent credit/large loans |
| LendingClub | 4.49% | $4k–$55k | Varies | Fair+ | P2P, direct payoff | Broad access |
| Caribou / myAutoLoan | 4.39–4.64% | $5k–$200k | 24–84 months | 580+ | Aggregator shopping | Comparing offers |
| iLending / Autopay | Varies (low end) | Varies | Varies | 560+ | Lenient credit | Bad/fair credit |
| Capital One / BofA | Competitive | Varies | Varies | Good | Big bank reliability | Existing customers |
(Averages: 4.67–13.35% overall; best offers sub-5% for excellent credit/low LTV.)
Tips to Get the Best Auto Refinance Rate
- Shop Around — Use aggregators (myAutoLoan, LendingTree) for multiple quotes.
- Boost Profile — Improve credit, lower DTI, increase equity.
- Credit Unions — Join for lowest rates (PenFed, Navy Federal easy).
- Short Terms — Often lowest rates (36–60 months).
- Prequalify — Soft pulls for estimates.
- Check Vehicle — Newer/low-mileage qualify better.
- Calculate Savings — Use refinance calculators.
Common Mistakes to Avoid
- Not shopping (rates vary 1–3%+).
- Refinancing upside-down loans (negative equity).
- Ignoring fees (origination reduces savings).
- Extending term too long (more interest overall).
- Refinancing if rates won’t drop significantly.
Alternatives
- HELOCs/Home Equity Loans — Lower rates (secured).
- Personal Loans — Unsecured, higher rates.
- Dealer Incentives — Trade-in deals.
- Credit Union Small Loans — If low balance.
Frequently Asked Questions (FAQ)
Average auto refinance rate in February 2026?
4.67–13.35%; best sub-5% for excellent credit.
Lowest rates?
3.89–4.19% (Navy Federal/PenFed) for qualified.
Best for bad credit?
iLending or similar aggregators.
How much can I save?
Hundreds–thousands; e.g., dropping 3% on $20k loan saves ~$1,000+.
Closing costs?
Usually low/none; some no fees.
Conclusion: Refinance Your Auto Loan in 2026
The best auto loan refinance rates in the USA for February 2026—PenFed (4.19%+ low rates), Navy Federal (military lowest), and LightStream (excellent credit/large loans)—offer strong savings opportunities. Marketplaces like Caribou/myAutoLoan simplify comparisons.
Prequalify today—many online processes are quick. Refinance strategically to lower costs and accelerate payoff.
Informational only—not financial advice. Rates/terms change; verify with lenders. Data reflects February 2026 sources.
