Looking at refinancing your auto loan? Or maybe you are here to learn more about what refinancing is and how the process works with MotoRefi? The information in this article will serve as your guide in answering some of the following frequently asked questions:
- What is MotoRefi?
- What do the reviews say about MotoRefi?
- How much does it cost?
- Who qualifies for auto refinancing from MotoRefi?
- How does MotoRefi compare to WithClutch?
What is MotoRefi?
MotoRefi was founded in 2017 by Kevin Bennett in Arlington, VA to help people refinance their current auto loans at cheaper rates. The company works by using its network of credit unions and community banks to connect customers with alternatives. MotoRefi offers a few other financial services including auto insurance, total loss protection, key replacement, extended vehicle protection, and a cosmetic care package. MotoRefi wants its customers to be secured in all aspects of their vehicles.
Before applying for any auto refinancing option, look through your credit report first, and analyze where you are and where you potentially need to be. The application process is pretty simple and hassle-free for pre-qualifying for auto refinancing. There will be no hard credit inquiry in the process when you are just checking your rate with MotoRefi. If you do decide to refinance, a hard credit inquiry will occur and be shown. Below is an outline of the information needed to apply and what will be offered at the end.
Step 1: Personal Information
Step 2: Vehicle information
- Find your vehicle by license plate, VIN, or Make/Model
- Enter vehicle mileage
- Enter estimated loan payoff amount
- Enter estimated monthly payment (optional)
Step 3: Pick an auto loan
- Based on the information you provided and an algorithm, you will be presented with qualified offers available for you to choose from.
- Depending on the option you select, the bank or lender will reach out to you and the process for refinancing will begin.
The loans that MotoRefi presents to the customer are found using an algorithm that considers three things: credit score, vehicle value, and current loan. All of these values are factored in and will provide options for rates and plans from different lenders. Refinancing is currently available to passenger vehicles which include cars, trucks, and SUVs. Motorcycles are not eligible at this moment.
MotoRefi Reviews: What do they say?
Experiences overall with MotoRefi have been pretty solid.WalletHub’s Editor rated it a 4.0/5, and onTrustpilot, it has 4.7/5 stars from 229 reviews. 88% of those reviews on Trustpilot rated the company as “excellent.” On Better Business Bureau (BBB), MotoRefi has an A rating with 302 customer reviews, 0 customer complaints, and 4.9/5 stars. Reviews from these sites praise the company for great customer service, quick response from lenders, and the ease of the process as a whole.
If the MotoRefi FAQs or website does not answer your questions, call the customer service number, (877) 445-0070 for more information. The reps on the phone are more than willing to share information with you and answer any questions. A pro that MotoRefi advertises is the fact that customers can refi with a co-borrower, so long as the state you are located in allows it.
A few things to note:
- Time to receive a call from a lender: within 24 hours
- Loan Amount: $5,000 – $100,000
- Loan Term: 24, 36, 48, 60, or 72 months
- Interest rate (APRs): Varies greatly, but can be as low as 2% or as high as 34%
- Typical process time to refinance from start to finish: 1 – 2 weeks, depending on how long it takes you to send the power of attorney back.
- Documents needed
- Contract: Sent over email using Docusign. Fairly hassle-free since it doesn’t require much more than reviewing the documents and signing it online.
- Power of attorney: Has to be mailed since it will be sent to the state for the title change. No extra fee will be charged to you for the overnight FedEx shipping. To speed up this part of the process, you can email a picture that is notarized while the FedEx package is being shipped.
The Hidden Downsides
Just because you’ve been pre-qualified for an offer does not guarantee 100% that that is the offer you will receive. Once all of the paperwork has been filled out and a proper check has been run, only then will the actual loan offer and APR be presented. In this case, you can still be denied an offer. There were a few reviews on BBB in which a customer had their credit run twice, only to be denied for refinancing. Beware also of the addition of their other products (GAP insurance, etc.) on your bill. In a few instances, on the final documents, there have been various other products added to upcharge the customer. After the customer complains, the company will cause issues and try to bully them into purchasing it still.
MotoRefi Fees and Costs to Refinance (what they won’t tell you)
When looking to refinance, you also need to take into account the fees associated with doing so. You will be saving money on your loan, but you will have to pay some extra fees upfront to start the process. For example, with MotoRefi, there is a one-time fee associated with the paperwork and general process that will cost the customer $399. There is another fee added to update the vehicle title (cost varies by state). The updating of the vehicle title is handled by MotoRefi, and the price will be included in your payment.
In the process of refinancing your vehicle, you will continue to pay your current car payments until your new vendor pays it off. Your old lender is required to send documents to confirm payments while you are in the process of refinancing. If you ended up overpaying your old lender will send you a refund for the amount.
Since MotoRefi Auto Refinance is not a direct lender, late fees will depend on the lender you choose. Be sure to check in advance with the lenders available to note the fees in advance so you are not surprised when you look at your bill.
MotoRefi: Who qualifies for refinancing
If you’re interested in using MotoRefi there are few key things to note when considering choosing them as your auto refinance company.
- MotoRefi has helped customers with FICO scores as low as 600 but generally requires at least a minimum credit score of 650 for approval.
- There is also a minimum income requirement set at $24,000 per year ($2,000/mo) put in place that customers have to make.
- Open to permanent residents as well as U.S. Citizens – anyone with a viable social security number (SSN).
- Vehicle under 150,000 miles
- Vehicle 10 years old or newer
- Must be 18 years old or older to refinance
How MotoRefi compares to WithClutch
Auto refinance loans can be very time-consuming in trying to figure out which option is best for you. Will your new loan have great rates? Is the process time-consuming? When considering refinancing options for your car loan it is best to weigh all of your options and scope out the playing field.
By using WithClutch, you can save money and refinance within 20 seconds. There will be no impact on your credit score in doing so. WithClutch Process:
- Input your phone number and your goal for refinancing
- You will be texted a 4-digit code and the last 4 digits of your Social Security Number (SSN)
- To note: Everything is encrypted. Your data is secure.
- You have the option to skip this step
- Enter your basic information – Name, email, address, date of birth (DOB), SSN
- Paired with lenders – select the best option for you
- Get approved for cash or lower rates within 5 minutes!