Top Cash-Out Refinance Auto Loans
What is cash-out auto loan refinancing? Is it the right option for you?
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Cash-out auto refinancing, also called cash-back refinancing, works just like typical auto loan refinancing. You replace your current car loan with a new one, often to reduce your interest rate or monthly payment. But with cash-out refinancing, you also borrow extra money against the equity in your vehicle and roll that amount into your refinance loan.
For example, if you only owe $5,000 on your car loan, but your vehicle is worth $10,000, you have $5,000 worth of equity. If you qualify for a cash-out refinance loan, you might get a new loan for the car’s value of $10,000. You could then pay off the original loan and receive $5,000 cash, usually in the form of a check. Not all lenders make cash-out auto refinancing loans, and cash limits vary for those that do.
Refinancing your auto loan may be an opportunity to reduce your interest rate and monthly payment. Tapping into any equity at the same time can provide cash for emergencies, to pay off debt or for other needs. This fast access to funds may seem appealing, but you should take time to consider whether it’s the best option for your financial situation.
Below you’ll find lenders who offer cash-out auto refinance loans, followed by questions to help you weigh the pros and cons of cash-out refinancing.
- 45+ auto loan products reviewed and rated by our team of experts.
- 30+ years of combined experience covering financial topics.
- Objective, comprehensive star rating system assessing 4 categories and 60+ data points across direct lenders and aggregators.
- Governed by NerdWallet's strict guidelines for editorial integrity.
- 45+ auto loan products reviewed and rated by our team of experts.
- 30+ years of combined experience covering financial topics.
- Objective, comprehensive star rating system assessing 4 categories and 60+ data points across direct lenders and aggregators.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Top Cash-Out Refinance Auto Loans
Lender | NerdWallet Rating | Est. APR | Loan amount | Min. credit score | Learn more |
|---|---|---|---|---|---|
4.0 /5 | 5.29-21.99% | $5,000-$100,000 | 580 | Learn more on RefiJet's website | |
 Gravity Lending – Cash-out refinance loan Learn more on Gravity Lending's website | 5.0 /5 | 4.99-14.99% | $10,000-$200,000 | 580 | Learn more on Gravity Lending's website |
4.0 /5 | 4.67-23.80% | $8,000-No max. | 550 | Learn more on RateGenius' website | |
3.5 /5 | 5.99-24.46% | $7,500-$150,000 | 550 | Learn more on iLending's website | |
3.5 /5 | 5.99-29.90% | $7,500-$100,000 | 500 | Learn more on OpenRoad's website |
Our pick for
Cash-out refinancing through loan aggregators
Aggregators connect prospective borrowers with a network of auto lenders, usually resulting in more than one loan offer. We evaluate them using different criteria than direct lenders.
RefiJet - Refinance loan
5.29-21.99%
$5,000-$100,000
580
Gravity Lending – Cash-out refinance loan
4.99-14.99%
$10,000-$200,000
580
RateGenius - Refinance loan
4.67-23.80%
$8,000-No max.
550
iLending - Refinance loan
5.99-24.46%
$7,500-$150,000
550
OpenRoad - Refinance loan
5.99-29.90%
$7,500-$100,000
500
Autopay - Refinance loan
4.67-23.80%
$8,000-No max.
560
Tresl - Refinance loan
4.67-23.80%
$8,000-No max.
550
Our pick for
Cash-out refinancing with direct lenders
Direct lenders are banks, credit unions and other companies that work directly with a borrower to make and service loans. We evaluate them using different criteria than aggregators.
Consumers Credit Union - Refinance loan
6.79-17.54%
$0-$100,000
600
Want to compare more options? Here are our other top picks:
The pros and cons of cash-out auto loan refinancing
These questions can help you decide if cash-out auto refinancing is the best solution for you.
Would auto loan refinancing significantly reduce your interest rate and lower your monthly payment? Maybe your credit score has improved since you financed your car, or you’ve realized you could qualify for a lower rate than a dealership gave you. If refinancing by itself would reduce your monthly expenses overall, it might make sense to include additional funds with your auto refinance for fast access to needed cash.
How does the rate of your auto refinance loan compare to other borrowing options? Auto loan rates vary greatly, depending on your credit profile and other factors. Before going with cash-out refinancing, compare the rate you will be paying with other options such as personal loans or credit card advances. If you’re considering a high-rate payday loan for an emergency financial situation, cash-out refinancing might be a lower-rate alternative.
Could your cash-out refinance loan balance result in negative equity problems? When your auto loan balance exceeds what your car is worth, it’s called negative equity or being upside down on a car loan. Some lenders will allow you to borrow more than your car’s value, putting your car's loan-to-value ratio at more than 100%. If you owe 150% of your car’s value, and it’s totaled, your insurance company would pay 100% of the car’s value, and you would owe the remaining balance of your loan. Also, it can be difficult to trade in or sell a car with negative equity, so cash-out refinancing might not be a good idea if you don’t plan to keep your vehicle for a while.
Is borrowing extra now worth adding several years to your loan? Often borrowers will refinance to a longer term, as a way to lower their monthly payment. But this can result in paying more interest over the life of the loan. The same is true if you extend your loan term to offset the increased balance from borrowing extra for cash.
Will cash-out auto refinancing increase your monthly car payment? If you increase your loan balance by borrowing extra cash, but you don’t extend the loan term or reduce your rate significantly, you will be paying a higher monthly payment. Can you afford this higher payment? Keep in mind, your car is loan collateral, putting you at risk of having it repossessed if you fall behind on payments.
Last updated on April 16, 2024
Methodology
NerdWallet's review process surveys companies that offer any combination of new car purchase loans, used car purchase loans, auto refinance loans (traditional and/or cash-out) and lease buyout loans. These companies include direct lenders and aggregators; the latter group doesn't have in-house loan products but matches borrowers to third-party lenders within a network. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
Our survey for direct lenders has different questions than the survey for aggregators, but each includes more than 60 data points. NerdWallet independently confirms product details and, when necessary, follows up with company representatives. At least two writers and an editor verify the facts for every lender review to ensure data are accurate.
To receive a star rating, a provider must respond to NerdWallet’s annual auto loans survey. Star ratings are then assessed from poor (one star) to excellent (five stars).
For more details about the categories considered and our processes, read our full methodology for rating direct lenders and our full methodology for rating aggregators.
NerdWallet's Top Cash-Out Refinance Auto Loans
- RefiJet - Refinance loan: Best for Cash-out refinancing through loan aggregators
- Gravity Lending – Cash-out refinance loan: Best for Cash-out refinancing through loan aggregators
- RateGenius - Refinance loan: Best for Cash-out refinancing through loan aggregators
- iLending - Refinance loan: Best for Cash-out refinancing through loan aggregators
- OpenRoad - Refinance loan: Best for Cash-out refinancing through loan aggregators
- Autopay - Refinance loan: Best for Cash-out refinancing through loan aggregators
- Consumers Credit Union - Refinance loan: Best for Cash-out refinancing with direct lenders
- Alliant Credit Union – Refinance loan: Best for Cash-out refinancing with direct lenders
- Tresl - Refinance loan: Best for Cash-out refinancing through loan aggregators
- Digital Federal Credit Union - Refinance loan: Best for Cash-out refinancing with direct lenders
- PenFed Credit Union - Refinance loan: Best for Cash-out refinancing with direct lenders
