Best overall

LightStream
4.2- Min. credit score:
- 700
- Fixed APR From:
- 5.99% –13.74%
- Loan amount:
- $5,000– $100,000
- Term lengths:
- 2 to 7 years
- Min. annual income:
- Not disclosed
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Before arriving at a dealership, it is wise to first research vehicle financing. Bankrate's best auto loans are selected based on a lender's available rates and terms, customer experience and transparency. Lender highlights are outlined below to help you to determine which vehicle financing option is right for you.
Auto loans are secured loans that help borrowers pay for a new or used car. They are available from dealerships and a variety of lenders, so it is important to shop around to find the best interest rates and terms for your vehicle.
4.0 Bankrate Score |
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3.7 Bankrate Score |
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3.9 Bankrate Score | APR from 2.83- 36.00% | Term 24-60mo | Min credit score 700 | Apply on partner site | Apply on partner site |
4.2 Bankrate Score | APR from 5.99- 13.74% with AutoPay | Term 24-84mo | Min credit score 750 | Apply on partner site | Apply on partner site |
4.2 Bankrate Score | APR from 2.99% | Term 36-60mo | Min credit score 700 | Apply on partner site | Apply on partner site |
w/0.25% autopay discount | Apply on partner site | Apply on partner site | |||
3.5 Bankrate Score | APR from 5.24% | Term 48-60mo | Min credit score 700 | Apply on partner site | Apply on partner site |
3.9 Bankrate Score | APR from 2.14% | Term 60mo | Min credit score 700 | Apply on partner site | Apply on partner site |
w/0.25% autopay discount | Apply on partner site | Apply on partner site | |||
APR from 5.04- 14.99% | Term 24-84mo | Min credit score 600 | |||
4.2 Bankrate Score | APR from 2.99% | Term 36-60mo | Min credit score 700 | Apply on partner site | Apply on partner site |
APR from 3.99- 24.99% | Term 60mo | Min credit score 700 | Apply on partner site | Apply on partner site | |
3.8 Bankrate Score | APR from 7.29- 11.54% | Term 36-72mo | Min credit score 700 | Apply on partner site | Apply on partner site |
3.9 Bankrate Score | APR from 3.12% | Term 48-60mo | Min credit score 700 | Apply on partner site | Apply on partner site |
4.1 Bankrate Score | APR from 5.61- 29.99% | Term 24-84mo | Min credit score 700 | Apply on partner site | Apply on partner site |
4.2 Bankrate Score | APR from 6.49- 14.24% with AutoPay | Term 24-84mo | Min credit score 700 | Apply on partner site | Apply on partner site |
4.2 Bankrate Score | APR from 5.99- 13.74% with AutoPay | Term 24-84mo | Min credit score 700 | Apply on partner site | Apply on partner site |
3.2 Bankrate Score | APR from 2.49% | Term 60mo | Min credit score 700 | Apply on partner site | Apply on partner site |
4.2 Bankrate Score | APR from 2.99% | Term 36-60mo | Min credit score 700 | Apply on partner site | Apply on partner site |
w/0.25% autopay discount | Apply on partner site | Apply on partner site |
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 their own 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 Jan. 3, 2023. 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.
As of Jan. 25, 2023, the average APRs according to a Bankrate study are the following.
36-month term | 48-month term | 60-month term | |
---|---|---|---|
New car | 6.14% | 6.17% | 6.18% |
Used car | 6.49% | 6.83% | 7.89% |
Car loan options go beyond just new and used. Each auto loan type has specific uses, and knowing what type you need can make the loan shopping process easier.
Lender | Current APR | Term | Loan Amount | Best for |
---|---|---|---|---|
LightStream | 5.99%-13.74% (with autopay) | 24 -84 months | $5,000-$100,000 | Overall auto loan |
Bank of America | Starting at 5.49% | 48-72 months | Starting at $7,500 | Big bank option |
Capital One | Not specified | 24-84 months | Starting at $4,000 | Convenience |
Carvana | Starting at 6.85% | 12-72 months | Not specified | Fully online experience |
myAutoLoan | Starting at 3.69% | 24-84 months | $5,000-$100,000 | Shopping for multiple loan offers |
Upstart | 5.61%-29.99% | 24-84 months | $9,000-$60,000 | Fair credit |
Lender | Current APR | Term | Loan Amount |
---|---|---|---|
Capital One | Not specified | 24 to 84 months | Starting at $4,000 |
Autopay | Starting at 2.99% | 24 to 96 months | $2,500 to $100,000 |
Carvana | Starting at 6.85% | 12 to 72 months | Not specified |
iLending | Starting at 2.14% | 12 to 84 months | Starting at $7,500 |
Lender | Current APR | Term | Loan Amount |
---|---|---|---|
Lightstream | 6.49% to 14.24% (with autopay) | 24 to 84 months | $5,000 to $10,000 |
Autopay | Starting at 3.24% | 24 to 96 months | $2,500 to $100,000 |
Caribou | 2.83% to 36.00% | 24 to 60 months | Not specified |
Upstart | 5.61% to 29.99% | 24 to 84 months | $9,000 to $60,000 |
RefiJet | 5.24% to 12.29% | 48 to 60 months | Not specified |
Why Upstart is best for fair credit: Drivers with fair credit scores, 510 to 669, may not receive competitive rates from traditional lenders. But Upstart's smarter rate approach will give any driver a better chance to receive decent rates to save money.
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 methodology when reviewing your application for a loan and setting your interest rate and terms.
Generally, your credit score will have the biggest effect on the rates 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 preapproval — going through this process will let you see which rates you qualify for without affecting your credit score.
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 third quarter of 2022 according to Experian.
CREDIT SCORE | NEW CAR LOANS | USE CAR LOANS |
---|---|---|
781-850 | 3.84% | 3.69% |
661-780 | 4.90% | 5.47% |
601-660 | 7.25% | 9.81% |
501-600 | 10.11% | 15.86% |
300-500 | 12.93% | 19.81% |
The February meeting of the Federal Open Market Committee (FOMC) raised the benchmark rate to 4.5-4.75 percent, this another hike working towards the goal of controlling growing inflation. For drivers already dealing with new vehicles costing an average of over $48,300 in August 2022, according to Kelley Blue Book, and the price to fill up at the pump hitting record highs, the added burden of higher rates feels daunting.
The benchmark rate doesn’t directly shift auto rates, but it affects the number that auto lenders base their rates on. This means that it is possible you will be met with steeper costs to borrow money for vehicle financing due to the Fed hike, but the hike itself is only one part of that increase.
Even with higher costs across the board, there are still a few ways to prepare and save money, regardless of movements made by the central bank.
Bankrate considers 18 different factors when selecting top auto loans. Acceptance criteria, whether rates and fees are available and APR all influence lender scores. These scores are broken up into four categories.