Auto Approve Auto Loan Refinancing: 2023 Review

Auto Approve offers auto refinancing loans. Applicants can choose terms for loans up to $150,000 from a variety of lenders. There are some bankruptcy limitations to qualify, and applicants must have an annual income of at least $24,000 to apply. But co-signers and co-borrowers are allowed, in most cases, to help applicants qualify.

Applicants should be prepared to pay an origination fee when they refinance with Auto Approve, with the exact amount varying by lender. And borrowers can qualify for an annual percentage rate discount with some of Auto Approve’s lenders by setting up autopay.

Auto Approve's website offers resources to give advice to car owners. Applicants will find financial education articles and answers to frequently asked questions.

Auto Approve may be a good fit for those who:

• Want to compare terms and rates. Pre-qualification with a soft credit check will not affect an applicant's credit score.

• Prefer to use a co-signer or co-borrower. Most applicants can qualify with co-signers and co-borrowers.

• Speak Spanish. Auto Approve has a staff of Spanish-speaking loan consultants available by phone, email or online inquiries.

Auto Approve at a glance

Auto Approve works with many different lenders, so the information provided here is general and can reflect the high or low end available among its lending partners.

• Application process

  • Origination fee: Yes, up to $488.

  • Personal information needed: Social Security number or ITIN, address, time at address, phone number, email address, citizenship status, birth date, employment status, employer name, housing status, housing payment amount, basic vehicle information and vehicle identification number.

  • Pre-qualification available: Yes, with a soft credit check.

  • Online, in-person or both: Majority can be completed online, but some verification must be done by phone.

  • Approval speed: Did not disclose.

• Qualifications

  • Minimum FICO credit score: 580.

  • Minimum credit history: 24 months.

  • Minimum annual gross income: $24,000.

  • Maximum debt-to-income ratio: 50%.

  • Bankruptcy-related restrictions: There are bankruptcy-related restrictions, but Auto Approve did not provide specifics.

  • States covered: All states.

• Restrictions

  • Maximum vehicle age: 10 years or more; depends on the lender.

  • Maximum vehicle mileage: Up to the low 200,000s.

  • Other vehicle restrictions: Refinancing is not available for commercial vehicles.

  • Loan amount minimum: $7,500.

  • Loan amount maximum: $150,000.

  • Maximum loan-to-value ratio: 140%.

  • Refinancing restrictions: Some lenders require a waiting period after the title is transferred.

• Other loan details

  • Loan terms: 12-120 months.

  • Rate discount: Some lenders offer a discount of 0.25 to 0.50 percentage points with automatic payments.

  • Greater-than-minimum payments: Yes, with automatic payments in most cases.

  • Biweekly payments: Did not disclose if accepted.

  • Late payment fee: Yes, varies by state and lender.

  • Prepayment penalty: None.

  • Co-applicants allowed: Co-signers and co-borrowers are allowed in nearly all cases.

  • Payment options: Check by mail, phone, online banking, mobile app, website, ACH (electronic bank-to-bank) and in person. Varies by lender.

  • Selected payment date: Borrowers are not able to select their payment due date.

  • Cash-out refinancing: Not offered.

  • Hardship plans: Yes. Details not provided.

  • Existing loan payoff: Did not disclose.

• Customer service

  • Assistance provided: Customer service agents can assist with the application and payment processes. Has team of Spanish-speaking loan consultants.

  • Availability: Customer service hours are Mon-Fri, 9 a.m. to 5 p.m. CT; Sat, 8 a.m. to 2 p.m. CT; Sun, 10 a.m. to 2 p.m. CT.

  • Contact options: Phone, email, chat and text.

More from Auto Approve

Auto Approve offers other services, including GAP insurance to cover the difference if you’re in an accident and your car’s value is less than your loan. The company also offers vehicle protection plans for refinanced vehicles to provide coverage after warranties end. Options can include roadside assistance, towing services and rental car reimbursement up to $50 a day.

Auto Approve auto loan rates

Credit requirements vary by auto lender, but Auto Approve lowest rates are typically available only to borrowers with good or excellent credit (a FICO score of about 690 and above). With fair or bad credit you won’t get the lowest interest rates, which means your monthly payment and total interest paid will be more. You can check your credit score before applying for a car loan.

Loan example: According to NerdWallet's auto loan calculator that uses the VantageScore credit model, a borrower with a credit score of 300-499 (considered deep subprime), a $20,000 used car loan, repayment term of 72 months, interest rate of 18% APR and $0 down payment would have monthly payments of $456. One year later, if all payments were made on time, the borrower will have paid the loan down to a balance of $17,963. If the borrower is able to then refinance at 12% APR for the remaining 60 months, the payment would drop to $399 and result in interest savings of $3,394 over the life of the loan.