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Best auto loan rates in December 2024

Updated Dec 11, 2024

What to know first: To drive away with the best deal, you need to arrive at the dealership lot with a plan for financing your car. Auto loans are a type of secured financing that help borrowers pay for a new or used car. They are available from dealerships and lenders. Because there are many lenders on the market, shopping around for a loan — just like you would your car — will help you find the best rates available.

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myAutoLoan: Best for fair credit borrowers

3.7
APR from
6.79%
Loan term
2-7 yrs
Loan amount
Starting at $8,000
Min credit score
600
See ratesArrow Right

Apply on partner site

NEW

Carputty: Best for auto loan for used car purchase

4.3
APR from
4.53- 12.53%
Loan term
4-6 yrs
Loan amount
$25k- $250K
Min credit score
680
See ratesArrow Right

Apply on partner site

REFINANCE

Gravity Lending: Best for no fees

4.0
APR from
4.99- 14.99%
Loan term
3-7 yrs
Loan amount
$15k- $150K
Min credit score
640
See ratesArrow Right

Apply on partner site

USED

myAutoLoan: Best for fair credit borrowers

3.7
APR from
7.04%
Loan term
2-7 yrs
Loan amount
Starting at $8,000
Min credit score
600
See ratesArrow Right

Apply on partner site

NEW

Auto Credit Express: Best for low-income borrowers

3.6
APR from
Varies by lender
Loan term
2-7 yrs
Loan amount
$5k- $45K
Min credit score
Not disclosed
See ratesArrow Right

Apply on partner site

REFINANCE

Autopay: Best for auto loan online lender

4.2
APR from
4.99%
Loan term
1-8 yrs
Loan amount
$5k- $150K
Min credit score
580
See ratesArrow Right

Apply on partner site

REFINANCE

Auto Approve: Best for loan comparison

4.0
APR from
5.29- 24.99%
Loan term
1-7 yrs
Loan amount
$10k- $150K
Min credit score
640
See ratesArrow Right

Apply on partner site

REFINANCE

myAutoLoan: Best for comparing rates with good credit

3.7
APR from
4.99%
Loan term
2-7 yrs
Loan amount
$5k- $120K
Min credit score
600
See ratesArrow Right

Apply on partner site

REFINANCE

Caribou: Best for fair credit loan comparison

4.5
APR from
5.48- 28.55%
Loan term
2-7 yrs
Loan amount
$5k- $125K
Min credit score
640
See ratesArrow Right

Apply on partner site

USED

Auto Credit Express: Best for low-income borrowers

3.6
APR from
Varies by lender
Loan term
2-7 yrs
Loan amount
$5k- $45K
Min credit score
525
See ratesArrow Right

Apply on partner site

NEW

Cars Direct: Best for poor credit borrowers

3.6
APR from
Not Specified
Loan term
2-6 yrs
Loan amount
$25k- $250K
Min credit score
700
See ratesArrow Right

Apply on partner site

REFINANCE

Carputty: Best for frequent car buyers

4.3
APR from
4.53- 12.53%
Loan term
4-6 yrs
Loan amount
$25k- $250K
Min credit score
680
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Apply on partner site

REFINANCE

LightStream: Best for fast funding

4.2
APR from
7.19- 15.44%
* with AutoPay
Loan term
2-7 yrs
Loan amount
$5k- $100K
Min credit score
Not disclosed
See ratesArrow Right

Apply on partner site

REFINANCE

RefiJet: Best for customer support

3.9
APR from
Not specified
Loan term
2-8 yrs
Loan amount
$5k- $150K
Min credit score
580
See ratesArrow Right

Apply on partner site

REFINANCE

iLending: Best for poor credit refinancing

4.4
APR from
5.94- 18.79%
Loan term
2-8 yrs
Loan amount
$5k- $150K
Min credit score
560
See ratesArrow Right

Apply on partner site

USED

Lightstream: Best overall auto loan

4.2
APR from
6.94- 15.19%
* with AutoPay
Loan term
2-7 yrs
Loan amount
$8k- $100K
Min credit score
Not disclosed
See ratesArrow Right

Apply on partner site

NEW

LightStream: Best overall auto loan

4.2
APR from
6.94- 15.19%
* with AutoPay
Loan term
2-7 yrs
Loan amount
$5k- $100K
Min credit score
Not disclosed
See ratesArrow Right

Apply on partner site

NEW

Autopay: Best for auto loan online lender

4.2
APR from
4.99%
Loan term
1-8 yrs
Loan amount
$8k- $150K
Min credit score
580
See ratesArrow Right

Apply on partner site

NEW

Tenet: Best for specialized EV loans

APR from
6.39- 15.75%
Loan term
3-7 yrs
Loan amount
$15k- $95K
Min credit score
Not disclosed
Read our reviewArrow Right

Read review on Bankrate

USED

Carputty: Best for auto loan for used car purchase

4.3
APR from
4.53- 12.53%
Loan term
4-6 yrs
Loan amount
$8k- $100K
Min credit score
680
See ratesArrow Right

Apply on partner site

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Compare auto loan rates in December 2024

Make use of this table to better understand the offerings of Bankrate’s top lenders. Depending on what type of loan you are considering and where your credit stands explore bad credit and refinance rates as well. Skim the details while keeping your credit score and funding needs top of mind,

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.

Caret Down Icon
Lender Current APR Term Loan Amount Best for
Autopay Starting at 4.99% - months $8,000-$120,000 Bankrate award winner for best auto loan online lender
myAutoLoan Starting at 6.79% 24-84 months Starting at $8,000 Shopping for multiple loan offers
LightStream 6.94%-15.19%* with AutoPay 24-84 months $5,000-$100,000 Overall auto loan
Bank of America Starting at 5.34% 48-72 months Starting at $7,500 Big bank option
Capital One Not specified 24-84 months Starting at $4,000 Convenience
PenFed Credit Union Starting at 4.44% 36-84 months Not specified Bankrate 2024 Award winner for best auto loan from a bank
Carputty Starting at 4.53% 63 Months $25,000-$250,000 Bankrate 2024 Award winner for best auto loan for used car purchase
Consumers Credit Union Starting at 5.99% 36-84 months Not specified Bankrate 2024 Award winner for best auto loan for new car purchase
Tenet 6.39%-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% - months $8,000-$120,000
Carvana 7.90%-27.90% 12-72 months Starting at $1,000
iLending 5.94%-18.79% 12-96 months $5,000-$150,000
For more information on bad credit auto loan rates, check out our page on bad credit auto loans.
Lender Current APR Term Loan Amount
LightStream 7.19%-15.44%* with AutoPay 24-84 months $5,000-$100,000
Autopay Starting at 4.99% - months $8,000-$120,000
Caribou 5.48%-28.55% Not specified $10,000-$125,000
Upstart 7.27%-29.99% 24-84 months $3,000-$60,000
RefiJet 5.29%-21.99% 24-96 months $5,000-$150,000
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.

A closer look at the best auto loan lenders in 2024

When comparing potential lenders look out for not only how potential rates will fit into your budget but also how the lending experience fits your needs.

Autopay: Bankrate award winner for best auto loan online lender

Autopay
Rating: 4.2 stars out of 5
4.2

Overview: Autopay is an auto loan marketplace which makes it a great option for a borrower who wants to explore many loan options all at once. Borrowers just have to submit one application and will then be presented with loans from a wide range of sources.

Fixed APR
4.99%
Loan amount
$8k– $150k
Min credit score
580

myAutoLoan: Best for fair credit borrowers

MyAutoLoan
Rating: 3.7 stars out of 5
3.7

Overview: myAutoLoan has no application fee and a convenient online application. It works with an expansive network of lenders to enable you to compare offers and find the right lender for your needs. It also offers loans for refinancing and lease buyouts.

Fixed APR
6.79%
Loan amount
Starting at $8,000
Min credit score
600

LightStream: Best overall

LightStream
Rating: 4.2 stars out of 5
4.2

Overview: LightStream offers unsecured personal loans to borrowers in all 50 states. Unlike traditional auto lenders that work with a network of dealerships, LightStream sends funds directly to the borrower. Although the minimum APR is competitive, the maximum is quite steep. 

Fixed APR
6.94%–15.19%
Loan amount
$5k– $100k
Min credit score
Not specified

Bank of America: Best big bank option

Bank of America
Rating: 3.7 stars out of 5
3.7

Overview: Bank of America is the second largest financial institution in the country and is trusted by consumers for a range of banking services, including auto financing. The bank offers loans for new, used, refinance and lease buyouts. It also carries minimal fees and serves drivers in all 50 states.

Fixed APR
5.64%
Loan amount
$7.5k
Min credit score
Not specified

PenFed Credit Union: Best for viewing potential rates

PenFed
Rating: 4.4 stars out of 5
4.4

Overview: Members of PenFed can view potential rates following prequalification without any damage to their credit score. This way, borrowers can compare different loan options at once and secure the right loan for their budget.

Fixed APR
4.44%
Loan amount
150,000
Min credit score
Not specified

Carputty: Bankrate 2024 award winner for best auto loan for used car purchase

Carputty
Rating: 4.3 stars out of 5
4.3

Overview: Carputty is a direct lender that allows borrowers to finance multiple vehicle purchases at once. It offers higher than usual loan amounts, called lines of credit, up to $250,000. Along with that borrowers can access funding as soon as the same day.

Fixed APR
4.53%–12.53%
Loan amount
$25k– $250k
Min credit score
680

Consumers Credit Union: Online car buyers

Consumers Credit Union
Rating: 4.5 stars out of 5
4.5

Overview: Similar to PenFed, Consumers Credit Union offers an online car-buying service to borrowers. Powered by TrueCar, shoppers can secure financing and make their vehicle purchase online. This option also offers a small discount.

Fixed APR
5.99%
Loan amount
Not specified
Min credit score
Not specified

Tenet: Best for specialized EV loans

Tenet

Overview: Tenet is a lender that specifically finances electric vehicles and plug-in hybrids. It has an online marketplace to view your options and apply quickly. Plus, it also has options to finance at-home charging systems when you buy your vehicle.

Fixed APR
6.39%–15.75%
Loan amount
$15k– $95k
Min credit score
Not specified

What are car loans and how do they work?

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 required 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. 

Types of auto loans

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. 

New car loan 

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. 

Used car loan 

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.

Auto refinance

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.

Cash-out auto refinance 

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.

Private party  

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.

Lease buyout

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.

Pros and cons of auto loans 

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.

Pros

  • Checkmark Icon

    Spreads out expenses: Securing a loan cuts down the amount of money you have to spend up front for your vehicle, instead you will pay across the course of your agreed loan term.

  • Checkmark Icon

    Afford a better car: With more time to repay your lender, you may be able to afford a nicer vehicle than what you could by buying outright.

  • Checkmark Icon

    You own the car at the end: Unlike with leasing, the vehicle will be yours once the loan is fully paid off.

  • Checkmark Icon

    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.

Cons

  • Monthly payments can be expensive: Due to a number of factors, interest rates are high right now. The average new car payment is $734 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.

How to choose the best auto loan lender

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:

Approval requirements

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.

Annual percentage rate

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.

Loan terms

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.

Current car loan interest rates

Car loan interest rates change frequently and impact how much you’re going to pay each month. So it’s important to track them when comparing auto loan rates. Bankrate surveys top banks across U.S. markets and crunches the numbers to find average interest rates for common loan terms. Use the below table, which updates weekly, to help you know the best time to buy a used or new car. 

Average rates as of December 11, 2024

60-month new car 7.53%
48-month new car 7.43%
48-month used car 8.24%
36-month used car 8.03%

Auto loan rates by 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 second quarter of 2024, according to Experian.

CREDIT SCORE NEW CAR LOANS USED CAR LOANS
781 to 850 (super prime) 5.08% 7.41%
661 to 780 (prime) 6.70% 9.63%
601 to 660 (nonprime) 9.73% 14.07%
501 to 600 (subprime) 13.00% 18.95%
300 to 500 (deep subprime) 15.43% 21.55%

What factors contribute to auto loan interest rates?

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: 

  • Your credit history: Lenders use credit scores to measure the risk that borrowers carry. Very simply, the lower your credit score is, the higher your interest rate will be.   
  • Vehicle down payment: Putting down a large down payment will not only bode well with lenders but will decrease the amount you are borrowing — saving you more money down the line.  
  • Loan term: Typically, a longer-term loan will equate to higher interest rates and more interest paid over the life of the loan. But a longer-term loan will decrease your monthly payment.  
  • Education and work history: Many lenders are expanding underwriting criteria outside of the sole measure of your credit score. This means you can still benefit from a competitive rate if you have a strong profession or educational background — with or without a perfect credit score.   
  • Vehicle age: An older vehicle can carry additional risk of issues for both you and your lender. So, you can expect an older car to carry higher rates.

How to calculate auto loan interest

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. 

What to know before applying for an auto loan

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. 

How to apply for an auto loan

To get the auto loan that’s right for your situation, follow these steps:

  1. Determine your auto loan budget: 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.
  2. Check your credit report: 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.
  3. Apply for auto loan preapproval: 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. 
  4. Shop for your car: 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. 
  5. Compare dealership offers: 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.
  6. Finalize the auto loan: At this point, you’ll need documents like proof of insurance and a vehicle title to seal the deal.  
  7. Start making payments: Keeping up with your monthly payments is vital in making sure the vehicle becomes yours and ensuring your credit comes out unscathed. Consider signing up for autopay so you never miss a payment.  

How to manage a car loan 

The key to managing your car loan is sticking to a budget and understanding how your agreed-upon payment timeline impacts it. Otherwise, you 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 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.

FAQs about auto loans

How we choose our best auto loan lenders

Bankrate's trusted auto loans industry expertise

48

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.