OpenRoad Lending Auto Loan Review 2024 (2024)

Pros Explained

• Good customer ratings: OpenRoad has many positive reviews and ratings on third party websites.
• Accepts borrowers with low credit scores: You may be eligible for an auto refinance loan with OpenRoad with a credit score as low as 500, but be aware that you may be charged a much higher rate.
• High loan-to-value (LTV) ratios: You may be able to borrow up to 180% of your car’s actual value. That’s helpful if you're upside down on your current auto loan.

Cons Explained

• Doesn’t refinance trucks: Oddly enough, OpenRoad Lending does not offer financing for trucks—an unfortunate fact given that pickup trucks recently made up about one out of every five new vehicles registered.
• Doesn’t offer pre-qualification: You must submit a full loan application to check your rates, which means you’ll see a hard credit inquiry listed on your credit reports—this isn’t a big deal, especially if you’re seriously rate-shopping for a loan, but it can have a slight negative effect on your credit.
• Doesn’t allow self-employed applicants: Another biggie for many people, OpenRoad only works with borrowers who have an employer—small business owners, freelancers, and entrepreneurs need not apply.
• Doesn’t allow co-signers; only co-borrowers: If you need extra help to qualify or otherwise don’t want to go solo on your loan, OpenRoad only allows you to apply with someone who will share primary ownership of the loan with you.

Types of Auto Loans Offered by OpenRoad Lending

OpenRoad Lending specializes in one type of loan: auto loan refinances. Although it may have offered loans to purchase cars in the past, only refinancing is available to apply for today.

Refinance Auto Loans

• APR: 1.99%–29.90%
• Loan amounts: $7,500–$100,000
• Loan terms: 36–84 months

Time to Receive Funds

OpenRoad is a relatively slow lender, taking from seven to 10 business days from the time you apply to finalize your loan application and pay off your old loan (if you’re approved). Since OpenRoad’s loan approval offer is only valid for 30 days, that means a third of this entire period may be spent just waiting on OpenRoad—an important thing to keep in mind in case the company requests any more information on your part.

Borrower Requirements

In order to qualify, you’ll need to meet certain credit and income qualifications. OpenRoad is much more accepting of low credit scores than most lenders, but it has some interesting rules when it comes to your income. It doesn’t count any income you earn from rideshare side hustles like Uber or Lyft, for example, nor any other self-employment income.

• Minimum recommended credit score: 500
• State availability: Available in 46 states
• Minimum age: 18 years old
• Minimum monthly income: $1,800

Vehicle Requirements

Compared with some other lenders, OpenRoad allows you to finance higher-mileage vehicles but has a lower cap on your vehicle’s age. It also has some particular sticky restrictions on which types of vehicles you can refinance:

• Maximum age: Not disclosed
• Current lender: Only works with FDIC- or NCUA-insured lenders, such as banks and credit unions
• Vehicle restrictions: Not available for trucks, commercial or business vehicles, or certain auto makes, including Daewoo, Isuzu, Smart, Oldsmobile, or any cars that aren’t currently being produced anymore
• Maximum accepted mileage: 160,000
• Maximum loan-to-value ratio: 180%

OpenRoad Lending Auto Loan Features

OpenRoad offers a few notable features:

• Origination fee: OpenRoad may offer low rates, but you’ll pay an origination fee of $249 to $449 if you decide to proceed with this loan.
• Pays creditors directly for refinance loans: A handy feature, this saves you an extra step—OpenRoad will send the loan funds directly to your current lender.
• Can change due date: You can plan your monthly due date to best align with how you manage your money. Many people choose a due date right after they get paid, for example.
  

Co-Signers and Co-Applicants

OpenRoad Lending allows you to apply with a co-borrower if you prefer, but not a co-signer. It’s a subtle difference, but an important one. A co-signer is only liable to repay the loan if you default, and has no rights to your car. If you apply with a co-borrower, on the other hand, they’ll be listed on your car’s title along with you—meaning they will also be a legal owner of your car.

If you’re just looking for help in qualifying for an auto loan but don’t necessarily want to share ownership of your car with someone else, we would recommend finding a lender that allows you to refinance with a co-signer instead.

Customer Service

OpenRoad offers a relatively limited number of customer support options. Currently, you can only email or call the company during limited customer support hours if you need assistance with applying for or managing your auto loan refinance.

Customer Satisfaction

OpenRoad has a good reputation according to actual customer reviews on popular websites.

How to Apply for an OpenRoad Lending Auto Loan

OpenRoad Lending doesn’t offer pre-qualification, so you’ll need to make sure you’re truly ready to apply for a refinance loan before you submit any information. Once you are ready, the application process is pretty quick, even if actual funding takes longer.

1. Get ready to apply: Check your budget to see what sort of monthly payment you can afford, and check your credit too to make sure everything’s on the up-and-up; examine your account details to make sure there are no errors bringing your credit score down.
2. Gather your car’s info: You’ll need to provide your car’s VIN, current mileage, and a list of specific features like power sunroof, custom rims, etc. You’ll also need your current lender’s name.
3. Gather documents: You’ll need copies of your photo ID, proof of income (such as a tax return or recent paycheck stub), and proof of address (such as a utility or insurance bill). You may need to send in your car’s title in some states as well.
4. Apply online: OpenRoad has a simple single-page application on its website that you can fill out. Alternatively, you can apply over the phone. You’ll typically be notified within a half hour whether your application is approved or not.
5. Shop around: OpenRoad isn’t your only option to refinance your auto loan, so it’s a good idea to check with multiple auto refinance lenders to make sure you land the best rate possible.
6. Sign your loan agreement: If OpenRoad is your best bet after all, simply sign your loan agreement to finalize the loan process. Once you’re approved, you just need to sign on the dotted (digital) line and provide any final required documentation.
7. Wrap up loose ends: OpenRoad may send the funds to your old lender to pay off your loan directly. Until your old lender confirms that your loan is paid off, however, it’s best to keep paying on schedule. Once the loan is transferred to OpenRoad, you can set up automatic payments.

Alternatives to OpenRoad Lending

Article Sources

1. OpenRoad Lending. "Refinance Your Vehicle."

2. Trustpilot. "OpenRoad Lending."

3. Experian. "Consumer Preference Shifted Towards Full-Size Pickup Trucks in Q3 2022."

4. OpenRoad Lending. "Auto Refinance Questions | FAQs."

5. OpenRoad Lending. "Ready to Lower Your Car Payment?"

6. OpenRoad Lending. "New or Used Car Loans."

7. OpenRoad Lending. "What Are the Minimum Requirements?"

8. Upsolve. "Co-signer Rights, Responsibilities, and Considerations."

9. State of California Department of Business Oversight. "Desist and Refrain Order Pursuant to Financial Code Section 22712."