RateGenius Auto Loan Refinance and Lease Buyout Loans: 2024 Review

Full review

Established in 1999, RateGenius offers auto loan refinancing, including cash-out refinancing, and car lease buyout loans. It does not offer purchase loans. RateGenius is an aggregator that works with 150-plus lending partners to match applicants to the best loan and rate for which they may qualify.

When applying with RateGenius, applicants receive pre-qualified offers with rate and payment estimates. In most cases, pre-qualification is done using a soft credit inquiry, which will not affect credit scores. Borrowers should be aware that a few RateGenius lending partners could do a hard credit inquiry when pre-qualifying, which can temporarily lower an applicant's credit scores.

Pre-qualification is not an approval of credit. After applicants select the pre-qualified offer that works best for them, RateGenius secures full loan approval, which includes a hard credit pull.

RateGenius has many resources on its website to help with auto loan refinancing decisions, including daily average interest rates by credit score and a variety of auto loan calculators.

RateGenius may be a good fit for those who:

• Want to compare loan options. RateGenius lets you receive multiple loan pre-qualification offers. In most cases, pre-qualification is immediate and done with a soft credit inquiry.

• Prefer assistance with the loan process. Applicants work with a loan specialist, from application to title transfer.

• Want more accessibility. RateGenius customer service is available on Saturday. Online chat is offered during business hours. Loan applications can also be made by phone.

RateGenius at a glance

Note that aggregators like RateGenius work with many different lenders, so the information provided is general and can reflect the high or low end available among its lending partners.

• Application process

  • Origination fee: Yes, there is a fee of $495 in nearly all cases.

  • Personal information needed: For the initial application, address, time at address, phone, email address, birthdate, employment status, employer name, housing status, housing payment amount, basic vehicle information. Additional information may be requested later by the lender.

  • Pre-qualification available: Pre-qualification with a soft credit check is available in nearly all cases, but a few network lenders may use a hard credit inquiry.

  • Online, in-person or both: Process can be completed 100% online, including document upload. Borrowers can also apply by phone.

  • Approval speed: Pre-qualification offers can be seen immediately in most cases. Approval can take longer but is usually in less than 24 hours.

• Qualifications

  • Minimum FICO credit score: There is a minimum credit score requirement in all cases. The lowest among all network lenders is 550.

  • Minimum credit history: Only a few lenders require a minimum credit history. For those that do, the shortest is 12 months.

  • Minimum annual gross income: There is a minimum income requirement in all cases, with the lowest being $30,000.

  • Maximum debt-to-income ratio: 60%.

  • Bankruptcy restrictions: Nearly all lending partners have bankruptcy restrictions, but details were not disclosed.

  • States covered: Available in all 50 states.

• Restrictions

  • Maximum vehicle age: 10 years.

  • Maximum vehicle mileage: 150,000 miles for auto refinance; no maximum for lease buyout.

  • Other vehicle restrictions: Possible with some lenders.

  • Loan amount minimum: $8,000.

  • Loan amount maximum: $100,000.

  • Refinancing time restrictions: Can refinance as soon as the previous loan's paperwork is complete and the title can be transferred. Some lenders require at least an $8,000 balance remaining on the loan.

• Other loan details

  • Loan terms: 24-96 months.

  • Rate discount: All lending partners offer a 0.25 to 0.50 percentage point rate discount if automatic payment is used.

  • Greater-than-minimum payments: Are accepted by all network lenders and can be made by automatic payment in most cases. Method of applying surplus varies by lender.

  • Bi-weekly payments: RateGenius does not know if its lending partners accept bi-weekly payments.

  • Late payment fee: Yes, following a grace period of 10-15 days. Amount of the fee varies by state.

  • Prepayment penalty: None.

  • Co-applicants allowed: Allows co-borrowers but not co-signers. Co-borrowers can apply at the same time.

  • Payment options: Mailed-in check, phone, online, ACH. Varies by lender.

  • Selected payment due date: Borrowers aren’t able to select the payment due date.

  • Offers cash-out refinancing: Yes. The maximum amount available depends on the vehicle’s loan-to-value ratio.

  • Hardship plans: RateGenius does not know if its lenders offer hardship plans.

  • Existing loan payoff: Funds are sent directly to the previous lender, electronically if possible.

• Customer service

  • Assistance provided: Borrowers work with a loan specialist to complete paperwork. When loan package is complete, RateGenius pays off the old loan and handles transferring the title to the new lender.

  • Availability: Monday through Saturday, 8 a.m.-7 p.m.

  • Contact options: Phone, email, text message.

» MORE: Compare lenders that offer auto lease buyout loans

More from RateGenius

RateGenius also offers GAP insurance and vehicle service contracts, which can be rolled into the borrower’s loan.

Borrowers can also take advantage of RateGenius’ many educational website resources, including a learning center, glossary of refinance terms and answers to frequently asked questions.

RateGenius auto loan rates

Credit requirements vary by auto lender, but the lowest rates are typically available only to borrowers with good or excellent credit (a FICO score of 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. RateGenius provides average daily loan rates on its website.

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.

How do we review auto loan aggregators?

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.

Because aggregators are not the actual lender and servicing of the loan passes to the lender in most cases, NerdWallet focuses most heavily on the front end of the loan process. This includes level of service/support and transparency, with less focus on the actual loan product. In all, our survey for aggregators 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, an aggregator must respond to NerdWallet’s annual auto loans survey. Star ratings are then assessed from poor (one star) to excellent (five stars).