Best overall
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 7.24% –15.19%
- Loan amount:
- $5,000– $100,000
- Term lengths:
- 2 to 7 years
- Min. annual income:
- Not disclosed
What to know first: Make sure you arrive on the dealership lot with a plan for financing your car. Auto loans are secured loans that help borrowers pay for a new or used car. They are available from dealerships and lenders. It is important to shop around to find the best interest rates and terms for your vehicle.
Bankrate’s best auto loans are selected based on a lender’s available rates and terms, customer experience and transparency. Explore the details to determine which vehicle financing option is right for you.
REFINANCE | APR from 4.99-
14.99% | Term 36-84mo | Min credit score 640 | Apply on partner site | Apply on partner site | |
---|---|---|---|---|---|---|
NEW |
| Apply on partner site | Apply on partner site | |||
REFINANCE | APR from 4.99% | Term 12-96mo | Min credit score 580 | Apply on partner site | Apply on partner site | |
REFINANCE | APR from 5.49% | Term 24-84mo | Min credit score 600 | Apply on partner site | Apply on partner site | |
REFINANCE | APR from 5.24-
24.99% | Term 12-84mo | Min credit score 620 | Apply on partner site | Apply on partner site | |
REFINANCE | APR from 5.99-
28.55% | Term 24-84mo | Min credit score 640 | Apply on partner site | Apply on partner site | |
USED | APR from 7.24% | Term 24-84mo | Min credit score 600 | Apply on partner site | Apply on partner site | |
NEW | APR from 6.99% | Term 24-84mo | Min credit score 600 | Apply on partner site | Apply on partner site | |
USED | APR from 7.24-
15.19% * with AutoPay | Term 24-84mo | Min credit score Not disclosed | Apply on partner site | Apply on partner site | |
REFINANCE | APR from 5.29-
21.99% | Term 24-96mo | Min credit score 580 | Apply on partner site | Apply on partner site | |
REFINANCE | APR from 7.74-
15.94% * with AutoPay | Term 24-84mo | Min credit score Not disclosed | Apply on partner site | Apply on partner site | |
REFINANCE | APR from 5.49-
18.79% | Term 24-96mo | Min credit score 560 | Apply on partner site | Apply on partner site | |
NEW | APR from 7.24-
15.19% * with AutoPay | Term 24-84mo | Min credit score Not disclosed | Apply on partner site | Apply on partner site | |
NEW | APR from 6.83% | Term 36-60mo | Min credit score 680 | Apply on partner site | Apply on partner site |
Lender | Current APR | Term | Loan Amount | Best for |
---|---|---|---|---|
LightStream | 7.24%-15.19%* with AutoPay | 24-84 months | $5,000-$100,000 | Overall auto loan |
Bank of America | Starting at 5.99% | 48-72 months | Starting at $7,500 | Big bank option |
Capital One | Not specified | 24-84 months | Starting at $4,000 | Convenience |
Carvana | 7.95%-27.95% | 12-72 months | Not specified | Fully online experience |
myAutoLoan | Starting at 6.99% | 24-84 months | Starting at $8,000 | Shopping for multiple loan offers |
Upstart | 9.32%-29.99% | 24-84 months | $9,000-$60,000 | Fair credit |
PenFed Credit Union | Starting at 5.24% | 36-84 months | Not specified | Bankrate 2024 Award winner for best auto loan from a bank |
Carputty | Starting at 6.83% | 24-60 months | $25,000-$250,000 | Bankrate 2024 Award winner for best auto loan for used car purchase |
Consumers Credit Union | Starting at 6.84% | 36-84 months | Not specified | Bankrate 2024 Award winner for best auto loan for new car purchase |
Tenet | 6.49%-15.75% | 36-84 months | $15,000-$95,000 | Bankrate 2024 Award winner for best auto loan for EV loans |
Lender | Current APR | Term | Loan Amount |
---|---|---|---|
Capital One | Not specified | 24-84 months | Starting at $4,000 |
Autopay | Starting at 4.99% | 12-96 months | $8,000-$150,000 |
Carvana | 7.95%-27.95% | 12-72 months | Starting at $1,000 |
iLending | 5.49%-18.79% | 12-96 months | $5,000-$150,000 |
Lender | Current APR | Term | Loan Amount |
---|---|---|---|
LightStream | 7.49%-15.44%* with AutoPay | 24-84 months | $5,000-$100,000 |
Autopay | Starting at 4.99% | 12-96 months | $8,000-$150,000 |
Caribou | 15.00%-28.55% | Not specified | $10,000-$125,000 |
Upstart | 9.32%-29.99% | 24-84 months | $9,000-$60,000 |
RefiJet | 5.29%-21.99% | 24-96 months | $5,000-$100,000 |
LendingClub | 4.99%-24.99% | 24-84 months | $4,000-$55,000 |
For more information on auto loan refinance rates, check out our page on auto loan refinancing.
Overview: LendingClub, typically recognized for its personal loan products, is a great option for borrowers looking to refinance their current loan. Financing is provided by LendingClub Bank.
Why LendingClub won for best auto loan for auto refinance: LendingClub doesn’t charge an origination fee. Combined with their competitive rates, customers with strong credit have a good chance of saving with LendingClub.
Overview: Carputty is a direct lender that allows borrowers to finance multiple vehicle purchases at once via a single line of credit.
Why Carputty won for best auto loan for used car purchase: The lender took first place due to its V3 valuation tool, which helps customers determine the best times to buy and sell vehicles.
Before exploring the right auto loan for your needs, it’s important to understand the ins and outs of the financing option and where to secure them.
Auto loans let you borrow the money you need to purchase a car. Since car loans are typically "secured,” they require you to use the automobile you are buying as collateral for the loan. You are typically asked to pay a fixed interest rate and monthly payment for 24 to 84 months, at which point your car will be paid off. Many dealerships offer financing, but you can also find auto loans at national banks, local credit unions and online lenders.
When shopping for an auto loan, compare APRs across multiple lenders to make sure you are getting a competitive rate. Look for lenders that keep fees to a minimum and offer repayment terms that fit your needs.
Loan details presented here are current as of publication. Check the lenders’ websites for more current information. The auto loan lenders listed here are selected based on factors such as APR, loan amounts, fees, credit requirements and more.
Car loan options go beyond just new and used. Each auto loan type has specific uses that cater to certain types of borrowers, and knowing what type you need can make the loan shopping process easier.
If you are looking to purchase a new car, you should seek out a new car loan. Dealerships offer new car financing on the lot, but you can also get them from banks, credit unions and online lenders. Shop around for your best interest rate and terms.
Buying a used car from a dealership will require a used car loan. You can get them at the same places you would get a new car loan. Lenders often limit cars’ age and mileage.
If you originally took out a loan at a dealership, or just didn't get a good rate, you may want to refinance your car and get a better interest rate. Or you can rework your terms to get a lower monthly payment. This process simply replaces your current auto with a new one. These loans aren't available through dealerships.
To get a little extra cash with your refinance, you can take out a cash-out refinance loan. Along with the balance you are refinancing, you can borrow against the equity you have in your car.
When you are buying a used car from an individual seller and do not have the cash on hand, you will need a private party auto loan. These are less common, but available at some banks, credit unions and online lenders.
Leasing a car can come with the option to buy the vehicle at the end. You can take out a lease buyout loan to finance that purchase. Lease buyout loans tend to be similar to used car loan rates.
An auto loan can be a great way to get behind the wheel. But cars are big purchases, and these loans can impact your finances for years. It’s important to weigh auto loans’ advantages and disadvantages before opting in.
Spreads out expenses. Securing a loan cuts down the amount of money you have to spend unfront for your vehicle, instead you will pay across the course of your agreed loan term.
Afford a better car. With more time to repay your lender, you may be able to afford a nicer vehicle than what you could buying outright.
You own the car at the end. Unlike with leasing, the vehicle will be yours once the loan is fully paid off.
May improve your credit score. Payment history makes up 35 percent of your FICO score. If you have proven loan pay-off history, your score could improve.
Monthly payments can be expensive. Due to a number of factors, interest rates are high right now. The average new car payment is $735 per month, according to Experian data.
Risk of damaging your finances. If you struggle with keeping your finances in order, beware of how missed payments may affect your credit and your ability to drive your car.
Your vehicle’s value depreciates. Your vehicle will start to depreciate the moment you exit the dealership.
Stuck with the same car for longer. If you like to switch up your vehicle every couple of years, leasing may be a better option.
Choosing the right lender can help you with financing a vehicle you can afford. We recommend you get quotes from at least three lenders beyond your car dealership before deciding which is right for you. Pay special attention to the following factors:
Every lender has different requirements to receive approval. Lenders will consider aspects like your credit history, income and debt-to-income ratio. Your credit serves as the primary determinant of potential rates. Keep in mind that typically, the worse your credit score is, the less competitive your rates will be.
The APR represents the amount of interest and fees that you will have to pay on the loan. Pay close attention to this number — a higher APR means more interest and thus a larger monthly cost. Also remember to shop the total loan amount, not just the monthly payment.
While a lower monthly payment may seem appealing, pay close attention to available terms, and consider how your loan’s length will impact your overall cost. A longer loan term will lower your monthly cost, but you will pay more interest. Conversely, a shorter loan term means a higher monthly cost but a lower cost over the life of the loan.
Average rates as of June 05, 2024
60-month new car | 7.84% | |
48-month new car | 7.74% | |
48-month used car | 8.50% | |
36-month used car | 8.42% |
While it is true that the interest rate you will receive varies depending on the lender and is somewhat out of your control, there are still choices you can make to increase approval. Consider these aspects and how they will affect loan approval and rates:
It’s smart to determine your expected monthly payment prior to signing off on your next loan. Not only will it put you in control of your finances, but it can ensure that you don’t end up paying more interest than you should. Use our tool below to determine how different interest rates will impact your monthly payment.
As mentioned, lenders use credit score as the primary determinant of a potential borrower's ability to pay off a loan. So, the better your credit score is, the more competitive interest rates you will receive. Below are the average APRs for new and used vehicles in the first quarter of 2024, according to Experian.
CREDIT SCORE | NEW CAR LOANS | USED CAR LOANS |
---|---|---|
781 to 850 (super prime) | 5.38% | 6.80% |
661 to 780 (prime) | 6.89% | 9.04% |
601 to 660 (nonprime) | 9.62% | 13.72% |
501 to 600 (subprime) | 12.85% | 18.97% |
300 to 500 (deep subprime) | 15.62% | 21.57% |
When looking for a car loan, it is best to shop around with a few lenders before making your decision. Each lender has its own method when reviewing your application for a loan and setting your interest rate and terms. Check your credit ahead of shopping to ensure you qualify for lenders you may have your sights set on.
Generally, your credit score will have the biggest effect on the rates you're offered. The higher your credit score, the lower APR you will receive. Having a higher credit score may also allow you to take out a larger loan or access a broader selection of repayment terms, but there are still ways to finance a car with bad credit. Choosing a longer repayment term will lower your monthly payments, although you will also pay more interest overall.
If you find a few lenders that you like, see if they offer prequalification — going through this process will let you see which rates you qualify for without affecting your credit score.
The first step is to understand what you can truly afford. Consider your current finances along with loan and vehicle upkeep costs to find this number.
The better your credit score is, the more competitive your rates will likely be. Use your credit score to guide which lenders make the most sense to apply to — based on lender requirements.
With auto loan preapproval you can lock in a rate before shopping for your car. This extended period allows you time to compare vehicle options and help with negotiating at the dealership.
Make use of online reviews found on sites like Kelley Blue Book or Edmunds to confirm the vehicle meets your needs along with any lender restrictions.
While dealership loan rates tend to be slightly higher than other options it is smart to compare, especially if you have a preapproved option to use as leverage.
At this point, you’ll need documents like proof of insurance and a vehicle title to seal the deal.
Keeping up with your monthly payments is vital in making sure the vehicle becomes yours and ensuring your credit comes out unscathed. Consider signing off on autopay so you never miss a payment.
The key to managing your car loan is sticking to a budget and understanding how your agreed-upon payment timeline impacts it. Otherwise, you can put yourself at risk of losing your vehicle and running into trouble. If you are on the brink of missing a payment, reach out to your lender as soon as possible to seek a solution.
You can you make extra payments to pay off your loan earlier to save on interest. But consider how early payoff can impact your credit — it can drop your score by a few points. Not all lenders allow early loan payoff. Approach your auto loan pay-off with care to ensure it fits best with your financial situation.
57 years
in business
37
lenders reviewed
18
loan features weighed
666
data points collected
The Bankrate team assessed more than 35 auto lenders to find the best. Bankrate considered 18 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.