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OpenRoad Lending: Auto Refinance Review

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Rates as of 3/7/2019

Maybe your credit has improved since you took out your car loan. Or perhaps your financial situation has changed or you are earning more income. Refinancing your auto loan could be a way to save money, especially if you’re able to secure a lower APR.

OpenRoad Lending is one lender offering auto loan refinancing. In this review, we will take a close look at what the company offers, and how to apply and see if you’re a good fit.

About OpenRoad Lending

OpenRoad Lending was founded in 2009. The Dallas-Fort Worth based company only offers auto refinance loans. It has earned an A accreditation from the Better Business Bureau. Hundreds of reviews on BBB’s site give the lender a 4.5 out of 5 rating.

OpenRoad refinancing: At a glance

In order to qualify for a refinance with OpenRoad, the vehicle must be newer than eight model years old and cannot have more than 100,000 miles on it. You must owe at least $10,000 on your current auto loan. Motorcycles and recreational vehicles are ineligible for OpenRoad refinancing.

OpenRoad offers auto refinancing with APRs as low as 1.99% to 3.79%,  for those with the best credit. OpenRoad says it offers refinancing options to people with all types of credit, but also cautions that the best rates go to those with good credit. The term of the loan will also affect your APR — OpenRoad terms range up to 72 months. Want a short term? OpenRoad says it offers terms “up to 24 months.”

Based on your current credit score, you may even be able to take advantage of the cashback refinance option that could give you up to $5,000 when you refinance your current loan.

Before you make a final decision to work with OpenRoad, it’s important to shop around. Comparing rates from multiple lenders will allow you to find the best possible option for your situation. Although it can feel tedious to sift through your options, it is crucial to ensure you walk away from your auto refinance with a great deal.  On LendingTree, you can fill out an online form and receive up to five potential auto loan offers from lenders at once, instead of filling out five different lender applications.

How to apply for OpenRoad refinancing

You can start the auto refinance application process with an online form that requires you to provide basic vehicle information, personal information, and financial information. You should have your car’s VIN number, insurance information, current lender’s information, and your vehicle’s registration available for this process. Once you have initiated the free application, OpenRoad will review your qualifications. When OpenRoad does this, it performs a hard credit inquiry that can cause your score to drop.

Usually, OpenRoad makes a decision within an hour. If you are approved, you will then have access to your refinance loan package that will include the details of your loan and instructions for your next steps. The initial refinancing loan package may change slightly because you will be required to provide proof of income and verify the value of your car.

Fine print

Take a close look at the list of cars that are eligible before you initiate the process. In addition to the requirements we already mentioned, the refinance must be for a personal vehicle — no business vehicles allowed. Vehicles no longer being manufactured are ineligible. OpenRoad also does not refinance Smart Cars, Oldsmobile, Daewoo or Isuzu vehicles. Finally, any vehicles over three-quarter tons are excluded.

OpenRoad also requires that you have a minimum gross monthly income of $1,500. It does not count Uber or similar income in that calculation.

When you apply for auto refinancing through OpenRoad, you will not have to pay an application fee. However, every state will require a title transfer fee to complete this process. OpenRoad will pay the fee for you and then add the difference to your final loan amount. This fee can range from $5 to $80 depending on the state.

Add-on products. OpenRoad offers several supplementary services including GAP insurance. GAP coverage will protect you in the event that your car is totaled before you pay it off. Insurance may only pay you the current value of the car instead of what you owe to the lender. If you do not have GAP coverage, then you may be required to continue making payments to your lender even if the car is no longer drivable. Remember, such products are optional — they are typically not conditions of financing — and you might find better pricing elsewhere.

Read the terms of your loan agreement carefully. If you have any questions, speak with an agent. Get all of the facts straight before signing anything.

Pros and cons of refinancing through OpenRoad Lending

OpenRoad has a streamlined application process that could help you get your auto loan refinanced quickly. The company offers a variety of refinancing options that might work for you.

It is tempting to get started immediately, but it is important to take the time to research your other refinancing options. Consider a variety of refinancing lenders before choosing one. This will allow you to find the best possible option for your situation.

Highlights of OpenRoad auto loan refinancing

  • The online application can be filled out quickly.
  • OpenRoad will make a quick decision about your refinancing options, typically within an hour.
  • No application fees.
  • No obligation to accept a refinancing quote.

Lowlights of OpenRoad auto refinancing

  • No refinancing of commercial or business vehicles.
  • Hard credit inquiry that could harm your credit score.
  • Several restrictions such as mileage, age and brand could eliminate your vehicle.

The bottom line: Who is OpenRoad best for?

Remember, no single lender is the absolute best for every situation, instead, different lenders specialize in different areas. Find the best company for your specific financial situation.

OpenRoad might be a good fit for you if:

You are serious about refinancing your auto loan. When you apply to OpenRoad, it will perform a hard pull on your credit which can cause your score to drop. Although the drop is likely temporary, there may be reasons to avoid any impacts on your credit score.

If you have recently improved your financial situation, then working with OpenRoad may be a good option, especially if you have recently improved your credit score. A higher credit score could lead to a significantly lower interest rate which has the potential to save you thousands over the life of your auto loan.

OpenRoad might not be a good fit for you if:

You have not improved your financial situation since taking out your original auto loan. If your credit score or income has not improved since you financed the car then refinancing may not be a good option. Anyone who is relatively close to paying off their car loan should consider other options because you will need to have at least $10,000 outstanding in order to work with OpenRoad.


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