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Best auto loan rates in February 2024

As of February 21, 2024
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Before arriving at a dealership, it is wise to first research vehicle financing. Auto loans are secured loans that help borrowers pay for a new or used car. They are available from dealerships and lenders, so 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. Lender highlights are outlined below to help you to determine which vehicle financing option is right for you.

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REFINANCE

USED

REFINANCE

REFINANCE

NEW

REFINANCE

USED

USED

USED

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NEW

NEW

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REFINANCE

REFINANCE

  • Refinance, lease buyout, and cashout refi available
  • Save hundreds by skipping costly admin and loan processing fees
  • E-sign your documents from anywhere, effortlessly
Apply on partner site
  • Network of dealer partners has closed $1 billion in bad credit auto loans
  • Specializes in bad credit, no credit, bankruptcy and reposession
  • In business since 1999
  • Easy, 30-second pre-qualification form
  • Bad credit applicants must have $2000/month income to qualify
Apply on partner site
APR from
5.24- 24.99%
Term

12-120mo

Min credit

640

Apply on partner site
  • Network of dealer partners has closed $1 billion in bad credit auto loans
  • Specializes in bad credit, no credit, bankruptcy and reposession
  • In business since 1999
  • Easy, 30-second pre-qualification form
  • Bad credit applicants must have $2000/month income to qualify
Apply on partner site
APR from
4.99%
Term

24-84mo

Min credit

575

Apply on partner site
  • Lower Your Monthly Payment- $150 Avg.
  • Reduce Your Interest Rate
  • Take a Vacation from Your Loan Payment
Apply on partner site
  • Rates as low as 0% on select cars, trucks and SUVs
  • Free Online Quotes - Get Your CarsDirect Target Price Today
  • Local dealers compete to provide the best rates for both new and used vehicles
Apply on partner site
APR from
5.99- 28.55%
Term

24-72mo

Min credit

640

Apply on partner site
APR from
7.09%
Term

24-84mo

Min credit

575

Apply on partner site
APR from
4.67%
Term

24-96mo

Min credit

Not disclosed

Apply on partner site
APR from
7.49- 15.94%
* with AutoPay
Term

24-84mo

Min credit

Not disclosed

Apply on partner site
APR from
4.29- 29.90%
Term

36-84mo

Min credit

Not disclosed

Apply on partner site
APR from
6.84%
Term

24-84mo

Min credit

575

Apply on partner site
APR from
4.67%
Term

24-96mo

Min credit

Not disclosed

Apply on partner site
APR from
7.49- 15.94%
* with AutoPay
Term

24-84mo

Min credit

Not disclosed

Apply on partner site
APR from
4.67%
Term

24-96mo

Min credit

Not disclosed

Apply on partner site
APR from
7.74- 16.19%
* with AutoPay
Term

24-84mo

Min credit

Not disclosed

Apply on partner site
APR from
6.59- 18.79%
Term

24-96mo

Min credit

560

Apply on partner site

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 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. 17, 2024. 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. 

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.

Compare auto loan rates in February 2024

Caret Down
Lender Current APR Term Loan Amount Best for
LightStream 7.49%-15.94%* with autopay 24 -84 months $5,000-$100,000 Overall auto loan
Bank of America Starting at 5.89% 48-72 months Starting at $7,500 Big bank option
Capital One Not specified 24-84 months Starting at $4,000 Convenience
Carvana Not specified 12-72 months Not specified Fully online experience
myAutoLoan Starting at 5.99% 24-84 months Starting at $5,000 Shopping for multiple loan offers
Upstart Varies by state 24-84 months $9,000-$60,000 Fair credit
PenFed Credit Union Starting at 5.24% 36-84 months Up to $150,000 Bankrate 2024 Award winner for best auto loan from a bank
LendingClub 4.99%-24.99% 48-84 months $4,000-$55,000 Bankrate 2024 Award winner for best auto loan for auto refinance
Carputty Starting at 7.35% 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 4.67% 24-96 months $2,500 to $100,000
Carvana Not specified 12-72 months Not specified
iLending Not specified 12-84 months Not specified
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 7.74%-16.19%* with autopay 24-84 months $5,000-$10,000
Autopay Starting at 4.67% 24-96 months $2,500-$100,000
Caribou 5.99%-28.55% Not specified $5,000-$125,000
Upstart Varies by state 24-84 months $9,000-$60,000
RefiJet Not specified Not specified Not specified
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.

Best auto loan lenders in 2024

Best overall

Min. credit score:
Not disclosed
Fixed APR From:
7.49% –15.94%
Loan amount:
$5,000– $100,000
Term lengths:
2 to 7 years
Min. annual income:
Not disclosed
Overview: LightStream offers unsecured auto loans for drivers online. It covers a range of financing needs including loans for new cars, used cars from a dealer or private seller, lease buyouts and even classic car financing.
Why Lightstream is the best overall: Lightstream offers quick funding for drivers in a pinch and a wide range of loan amounts. 

Best big bank option

Min. credit score:
Not disclosed
Fixed APR From:
5.89%
Loan amount:
$7,500
Term lengths:
4 to 6 years
Min. annual income:
Not disclosed
Overview: Bank of America offers flexible and convenient auto loans you can apply for directly on its website. Rates are competitive, and you can qualify for additional discounts if you are an eligible Bank of America customer.
Why Bank of America is the best big bank option: With over 4,000 brick-and-mortar locations, Bank of America is perfect for an in-person experience coupled with discounts for account holders. 

Best for convenience

Min. credit score:
Not disclosed
Fixed APR From:
Not disclosed
Loan amount:
starting at $4,000
Term lengths:
2 to 7 years
Min. annual income:
Not disclosed
Overview: Capital One's financing works as a “one-stop shop” for your auto loan and vehicle purchase. Through one of its partnered dealerships, you can borrow as little as $4,000 with terms from 24 to 84 months.
Why Capital One is the best for convenience: The Capital One Auto Navigator site lets you search for inventory in your area and gives you the ability to see how different makes, models and features will affect your total cost. 

Best fully online experience

Min. credit score:
Not disclosed
Fixed APR From:
Not disclosed
Loan amount:
Not specified
Term lengths:
3 to 6 years
Min. annual income:
Not disclosed
Overview: ​​Carvana lets you shop for a car online and pick up your purchase from a giant “car vending machine” or choose from its other delivery options. Its process lets you enjoy a unique experience, and Carvana also offers competitive car loan rates and terms.
Why Carvana is the best fully online experience: Carvana offers a streamlined online experience where you can shop for and finance your new vehicle all from the comfort of your own home.

Best for shopping for multiple loan offers

Min. credit score:
575
Fixed APR From:
6.84%
Loan amount:
$5,000– $120,000
Term lengths:
2 to 7 years
Min. annual income:
$5,000
Overview: With no application fee and convenient online application myAutoLoan 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. 
Why myAutoLoan is the best for shopping for multiple loan offers: You can easily compare multiple loan offers all on the myAutoLoan platform with no hard credit pull. This platform lets you enter your information once and receive multiple loan offers in one place.

Bankrate 2024 Award winner for best auto loan for auto refinance

Min. credit score:
600
Fixed APR From:
9.57% –35.99%
Loan amount:
$1,000– $40,000
Term lengths:
2 to 5 years
Min. annual income:
Not disclosed

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. 

Bankrate 2024 Award winner for best auto loan for used car purchase

Min. credit score:
680
Fixed APR From:
7.35%
Loan amount:
Up to $250,000
Term lengths:
3 to 5 years
Min. annual income:
Not disclosed

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.

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 new or used car. 

Average rates as of February 14, 2024

60-month new car 7.91%
48-month new car 7.81%
48-month used car 8.58%
36-month used car 8.49%

Pros and cons of auto loans 

While securing an auto loan can be a great way to get behind the wheel of a vehicle, it is important to weigh the advantages and disadvantages that come with financing your next ride.

Pros

  • Checkmark

    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.

  • Checkmark

    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.

  • Checkmark

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

  • Checkmark

    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 $726 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.

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 methodology 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. 

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. 

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 third quarter of 2023, according to Experian.

CREDIT SCORE NEW CAR LOANS USED CAR LOANS
781 to 850 (super prime) 5.61% 7.43%
661 to 780 (prime) 6.88% 9.33%
601 to 660 (nonprime) 9.29% 13.53%
501 to 600 (subprime) 11.86% 18.39%
300 to 500 (deep subprime) 14.17% 21.18%

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 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. 

While you can you make extra payments to pay off your loan earlier to save on interest, consider how paying off your loan early can impact your credit —- it can drop your score by a few points. Not all lenders even allow early loan pay-off. Approach your auto loan pay-off with care to ensure it fits best with your financial situation.

FAQs about auto loans

Methodology

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.

  • Availability: Loan amounts, repayment options, dealership requirements and state availability all contribute to this category.
  • Affordability: This section houses APR ranges, acceptance criteria, fees and discounts. 
  • Customer experience: How long you have to shop, customer service availability, whether there’s an app and autopay availability are accounted for in this section.
  • Transparency: This category accounts for the availability of fees and rates along with whether prequalification is available.