Best overall

LightStream
4.2- Min. credit score:
- 700
- Fixed APR From:
- 8.49% –15.94%
- Loan amount:
- $5,000– $100,000
- Term lengths:
- 2 to 7 years
- Min. annual income:
- Not disclosed
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.
4.2 Bankrate Score | APR from 8.49- 16.19% * with AutoPay | Term 24-84mo | Min credit score Not disclosed | Apply on partner site | Apply on partner site |
4.2 Bankrate Score | APR from 4.67% | Term 24-96mo | Min credit score Not disclosed | Apply on partner site | Apply on partner site |
4.1 Bankrate Score | APR from 5.69- 28.55% | Term 24-72mo | Min credit score Not disclosed | Apply on partner site | Apply on partner site |
3.9 Bankrate Score | APR from 5.24% | Term 24-72mo | Min credit score 700 | Apply on partner site | Apply on partner site |
4.0 Bankrate Score | APR from 4.99- 24.99% | Term 12-120mo | Min credit score 640 | Apply on partner site | Apply on partner site |
3.6 Bankrate Score |
| Apply on partner site | Apply on partner site | ||
3.6 Bankrate Score |
| Apply on partner site | Apply on partner site | ||
4.0 Bankrate Score | APR from 5.49% | Term 24-84mo | Min credit score 600 | Apply on partner site | Apply on partner site |
3.6 Bankrate Score |
| Apply on partner site | Apply on partner site | ||
4.2 Bankrate Score | APR from 8.74- 16.19% * with AutoPay | Term 24-84mo | Min credit score 700 | Apply on partner site | Apply on partner site |
4.0 Bankrate Score | APR from 4.49% | Term 24-84mo | Min credit score 560 | Apply on partner site | Apply on partner site |
4.2 Bankrate Score | APR from 4.67% | Term 24-96mo | Min credit score Not disclosed | Apply on partner site | Apply on partner site |
4.2 Bankrate Score | APR from 4.67% | Term 24-96mo | Min credit score Not disclosed | Apply on partner site | Apply on partner site |
4.2 Bankrate Score | APR from 8.49- 15.94% * with AutoPay | Term 24-84mo | 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 May 8, 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 June 7, 2023, the average APRs according to a Bankrate study are the following.
36-month term | 48-month term | 60-month term | |
---|---|---|---|
New car | 6.92% | 6.95% | 6.98% |
Used car | 7.37% | 7.51% | 8.18% |
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.
Lender | Current APR | Term | Loan Amount | Best for |
---|---|---|---|---|
LightStream | 8.49% – 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 5.29% | 24-72 months | $5,000-$100,000 | Shopping for multiple loan offers |
Upstart | Varies by state | 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 4.67% | 24 to 96 months | $2,500 to $100,000 |
Carvana | Not specified | 12 to 72 months | Not specified |
iLending | Starting at 4.49% | 12 to 84 months | Starting at $7,500 |
Lender | Current APR | Term | Loan Amount |
---|---|---|---|
Lightstream | 8.74% – 16.19%* with AutoPay | 24 to 84 months | $5,000 to $10,000 |
Autopay | Starting at 4.67% | 24 to 96 months | $2,500 to $100,000 |
Caribou | 5.69% to 28.55% | Not specified | Not specified |
Upstart | Varies by State | 24 to 84 months | $9,000 to $60,000 |
RefiJet | Starting at 5.24% | Not specified | Not specified |
Average rates as of 06/07/2023
60-month new car | 6.98% | |
48-month new car | 6.95% | |
48-month used car | 7.51% | |
36-month used car | 7.37% |
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.
Ability to afford a car. Financing allows you to afford a dream vehicle that might be outside your cash budget.
Can improve credit. Paying your loan on time and in full each month is one of the most effective ways to improve your credit score.
Ends in ownership. Once you pay off your loan, the vehicle is all yours.
Potentially high payments. Depending on your credit history, you could be signing off on expensive monthly payments.
Vehicle depreciation. Some vehicles depreciate so fast, you’ll end up owing more than the vehicle’s value. This is called being upside-down on your loan.
Steep interest rates. Current economic factors mean higher-than-usual interest rates for many borrowers.
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 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 preapproval — going through this process will let you see which rates you qualify for without affecting your credit score.
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 auto loan interest rates 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 calculate your car loan interest rate.
CREDIT SCORE | NEW CAR LOANS | USE CAR LOANS |
---|---|---|
781-850 | 4.75% | 5.99% |
661-780 | 5.82% | 7.83% |
601-660 | 8.12% | 12.08% |
501-600 | 10.79% | 17.46% |
300-500 | 13.42% | 20.62% |
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.
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.