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Key takeaways
- Caribou is an online platform that matches borrowers with partner lenders offering auto refinance loans.
- Most passenger vehicles are accepted, with motorcycles the notable exception.
- Lenders on the platform might charge origination fees when you refinance with them.
Caribou is an online marketplace that pairs car owners with auto refinance loans to help borrowers save money. It works with a network of partner lenders offering online prequalification and applications. Caribou doesn’t charge fees, but the new lender might if you accept a loan offer.
Who are Caribou auto refinance loans best for?
Caribou loans make sense for borrowers who want to compare loan options from multiple lenders. Lenders appear in a centralized location after you prequalify, making it easy to evaluate loan terms. Caribou might show refinance loans with lower interest rates or shorter repayment terms. Customer support can guide you if you have any questions during the process.
Caribou is also suitable if you want to purchase add-on coverages. You can buy extended protection, key replacement, guaranteed asset protection (gap) insurance and cosmetic care coverage. These add-ons increase insurance costs, and might not be necessary. Some consumers might be better off creating an emergency fund for these costs.
Who might Caribou auto refinancing not be a fit for?
Caribou offers only auto refinancing, and its loans are not available in Maryland and Hawaii. If you live in one of those states, Caribou isn’t the best choice. It also does not refinance motorcycles or commercial vehicles. You can’t finance a lease buyout through Caribou, either, so you might need to look elsewhere for this need.
Although Caribou says it doesn’t charge fees, some customers have reported refinancing costs, such as processing fees. These might be fees partner lenders charge, but they can increase borrowing costs.
Caribou auto refinance loan details
Caribou’s repayment terms range from 24 to 84 months, and its starting annual percentage rate (APR) is competitive. Borrowers with 36-month terms and excellent credit might qualify for the lowest APR.
Caribou refinances passenger vehicles, such as cars, trucks and SUVs. Your vehicle must be no older than 12 years and have no more than 150,000 miles on the odometer. Caribou does not refinance motorcycles or commercial vehicles.
Caribou auto refinancing requirements
Caribou doesn’t state auto refinancing requirements, such as a minimum credit score or annual income, which can make it difficult to know whether you’ll qualify. However, a Caribou representative says borrowers must have a FICO score of at least 580.
To apply, provide basic information about yourself and your vehicle. Caribou allows co-borrowers. If you have one, gather their information before applying.
There is no minimum income requirement for refinancing with Caribou. However, Caribou requests your income when you apply to provide customized offers. It also says its lending partners might require proof of income.
Pros and cons of Caribou
Pros explained
- Streamlined experience: Caribou’s online application matches you with offers from local and community lenders.
- Flexible repayment terms: Terms range from 24 to 84 months.
- Co-borrowers allowed: You can add a co-borrower to your application.
Cons explained
- Not available in all states: Borrowers in some states aren’t eligible for refinancing.
- Fees: Costs, such as processing fees, might apply when you refinance.
- Some vehicles are ineligible: Motorcycles and commercial vehicles are excluded.
Buy Side’s take on Caribou
Caribou’s simple online application lets you see prequalified loan offers from its network of partner lenders. Caribou doesn’t offer purchase loans, lease buyouts or other products, which can limit its attractiveness.
How to get a Caribou auto refinance loan
Follow these steps to refinance with Caribou:
- Check your rate: Provide basic information about yourself, your car and your co-borrower (if applicable), and Caribou will share prequalified loan options. Prequalification is not an offer of credit, and final rates might be higher.
- Select your existing loan: Caribou can import your existing loan from your credit history into the application.
- Select an offer: Choose the refinance offer that best matches your goals, such as lowering your interest rate or extending your repayment term.
- Add documents: Submit the required documents, including proof of employment or existing loan information. If purchasing add-ons, such as gap insurance, add them here.
- Sign and finalize: Verify the details of your loan and sign it to finalize.
How Caribou compares to other lenders
Many online lenders offer auto loans and refinancing. Compare three to five lenders to find favorable terms.
Caribou vs. LightStream
LightStream offers refinancing and purchase loans for new and used vehicles. Because LightStream is a lender, its website has more details about its loans. Loan amounts range from $5,000 to $100,000, and there are no vehicle age or mileage restrictions.
Caribou and LightStream have competitive starting APRs and terms. However, because Caribou is a loan marketplace, it lets you compare loan offers with prequalification, while LightStream requires an application to see your rate.
Caribou vs. Capital One
Capital One offers vehicle financing as well as refinancing. While refinancing is direct through Capital One, financing requires working with a preferred dealership. Working with a dealership can result in easier financing, but it limits access to options. Caribou also provides the ability to compare offers from multiple lenders, while Capital One refinancing restricts you to one.
How Buy Side rates auto lenders
We analyzed hundreds of data points from more than 30 lenders and assigned ratings on a scale of 1 to 5 stars to create a list of auto loans that cater to different preferences. We assigned points based on weighted factors. Each factor was weighted based on our assessment of its value to consumers, using publicly available information and the expertise of Buy Side team members. Learn more about how we rate auto loans based on data-driven methodologies to maintain our editorial independence.
More From Buyside:- How to Refinance a Car Loan
- How Soon Can You Refinance a Car Loan?
- Should You Refinance Your Auto Loan? Pros and Cons
