2019 Nationwide Auto Loan Refinance Review
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There are a number of reasons you may want to refinance your auto loan. Maybe your credit score has improved since you initially received your auto loan and you believe your interest rate is higher than it needs to be. It’s also possible your financial situation has changed for the worst and you want a longer term in order to lower your monthly payments.
Refinancing, which is the process of replacing your current loan with a new one, may help you secure more favorable terms or rates. If you’re a Nationwide customer, you may be considering its auto refinancing offerings.
Below, we explore Nationwide’s pros and cons, how to apply and who may benefit from it the most.
Nationwide may be known as an insurance giant, but the company also partners with Axos Bank to offer a variety of financial products including auto refinance loans. Formerly known as Bank of Internet, Axos is an online lender based in California offering everything from checking accounts to home mortgages.
In 2018, Axos acquired Nationwide Bank, including its checking, savings and money market accounts. If you’re a Nationwide customer and you’re interested in refinancing your auto loan through the insurance provider, you’ll be working with Axos. Axos also provides auto refinance loans direct to customers — not just Nationwide customers — and a range of auto loans through auto dealerships.
Nationwide: Refinancing at a glance
- Loan amounts between $10,000 and $90,000
- Rates as low as 4.45%, as of publication
- Terms up to 84 months
You could get an idea of what Nationwide auto refinancing through Axos might cost you by using its online calculator, which showed an even lower rate, 4.20%, than the one above. Customers who use autopay to pay their car loan may receive a quarter point rate discount. Terms start at 12 months and go up to 84 months.
Nationwide isn’t your only option for refinancing an auto loan. It is well worth your time and effort to shop around and compare rates from multiple lenders including your own bank, credit union or online lender. You’ll probably find that refinance rates are generally higher than new car rates, particularly for older vehicles. This means it’s even more important to comparison shop — doing so ensures you select the very best offer for your financial situation and lifestyle needs. You could fill out one online form at LendingTree and receive up to five auto loan offers from up to five different lenders, based on your creditworthiness.
How to apply
If you decide to pursue an auto refinance through Nationwide, you’ll be required to complete the 15-minute online application process, which will ask you for your Social Security number and a valid ID. You’ll also need to provide personal information such as name and email address, financial information like your annual salary and vehicle information including the year, make and model of your vehicle and its VIN.
You should be aware that this process involves a hard credit check, which may affect your credit. However, one application won’t hurt your credit any more than multiple applications would, assuming you apply within a two-week window.
The fine print
- Your vehicle must have fewer than 125,000 miles and be valued between $8,500 and $90,000 in accordance with Kelley Blue Book retail values.
- Certain brands may be ineligible for refinancing.
- The minimum credit score to apply is 680.
You might save money by refinancing through Axos, particularly if you have good credit, your car is relatively new and you bank with Axos. Although the first payment on your new auto loan will be due in about 45 days, you may delay payment for up to 90 days. To do so, you’ll need to set up an automatic payment for your loan from an Axos CashBack or Essential Checking account.
Axos doesn’t refinance motorcycles, boats, motor homes, RVs, classic cars, cars without VINs, vehicles with salvage titles or the following makes:
Pros and cons of refinancing through Nationwide
Shopping around and evaluating the pros and cons of multiple lenders can ensure you make an educated decision on your auto refinance. Here’s a brief overview of the pros and cons of auto refinancing through Nationwide by Axos:
Highlights of Nationwide auto loan refinancing through Axos
- Fast application: The online application form only takes 15 minutes to fill out though you will need to gather some information about your vehicle beforehand. Decisions are quick, too — you should receive one within 24 hours.
- No prepayment penalty: If you have plans to pay off your auto loan early, Axos won’t penalize you or charge you any fees.
- Discounts available: Interest rates can be reduced by setting up autopay through an Axos CashBack or Essential Checking account, which can be opened at no charge. Nationwide customers may be eligible for certain promotions.
Lowlights of Nationwide auto loan refinancing through Axos
- No regional branches: Since Nationwide auto refinancing is done 100% online through Axos, you won’t be able to visit a branch near you to go through the process and ask questions about your loan. You may call customer service, but you should be aware that its hours are on Pacific Standard Time.
- Not all cars qualify: Axos does not offer auto refinancing on all makes or models. Additionally, if your car is more than 20 years old or has over 150,000 miles, it is ineligible.
- Loan amounts range from $10,000 to $90,000: Compared with other lenders that offer auto refinancing, Axos’ minimum loan limit of $10,000 is a bit high.
The bottom line: Who is Nationwide best for?
If you’re a Nationwide customer interested in an auto refinance loan through Axos, you may be eligible for discounts. Otherwise, its rates are slightly higher than others we’ve seen from competitors that also may allow you to see offers without a hard credit pull. Credit unions also often offer competitive rates, assuming you meet their membership guidelines.
You may be a good fit for Nationwide auto refinancing through Axos if you:
- Are a Nationwide customer who is eligible for discounts.
- Plan on paying off your auto loan early and want to avoid fees.
- Would like to lock in a rate discount by setting up autopay through an Axos CashBack or Essential Checking account.
- Are searching for a fast, convenient online application process.
You may not be a good fit for Nationwide auto refinancing through Axos if you:
- Have low credit — the minimum credit score to apply is 680.
- Wish to apply for auto refinancing and ask questions about your loan in-person at a brick-and-mortar lender.
- Hope to refinance a classic car, RV, motorcycle or one of the other types of vehicles that Axos excludes.
The information in this article is accurate as of the date of publishing