Today, the best auto loan rates for new and used cars are offered by myAutoloan, Consumers Credit Union, Autopay, and PenFed Credit Union.
Affiliate disclosure: Automoblog and its partners may be compensated when you purchase the products below.
Compare Auto Loan Rates
Compare which options fit your budget, credit score, and term length below.
- All
- Up to 84 months
- 24 to 84 months
- 36 to 84 months
- 36 to 72 months
- 3 to 84 months
- 12 to 72 months
- All
- 300
- 500
- 560
- 575
- 580
- 620
Subprime Loan
Cred Score
Rate Term
APR*
- Get approved in as little as 60 seconds
- All credit types gladly accepted
- Absolutely no obligation
Used Car Loan
Cred Score
Rate Term
APR*
- Below-average credit scores accepted
- Great interest rates
- Smooth and easy online experience
Refinance Loan
Cred Score
Rate Term
APR*
- Average monthly savings of $145
- Online application
- Browse loan options found specifically for you
Used Car Loan
Cred Score
Rate Term
APR*
- Great for customers with limited/no credit
- Offers special military rates
- A+ BBB rating
Refinance Loan
Cred Score
Rate Term
APR*
- Great for customers with limited/no credit
- Offers special military rates
- A+ BBB rating
Refinance Loan
Cred Score
Rate Term
APR*
- Below-average credit scores accepted
- Great interest rates
- Smooth and easy online experience
Refinance Loan
Cred Score
Rate Term
APR*
- Specializes in auto refinancing
- A+ BBB Rating
- No application fee
New Car Loan
Cred Score
Rate Term
APR*
- Below-average credit scores
- Great interest rates
- Smooth and easy online experience
Refinance Loan
Cred Score
Rate Term
APR*
- Average savings of $111/month
- Secure, fully online platform
- Refinancing available for cars, trucks, or SUVs
Getting the best auto loan rates can save you hundreds or even thousands of dollars over the life of the loan. To help you find the best financing options, our experts compiled their research into the following guide.
We take a look at the top lenders in the industry, outlining the rates and services they offer for easy comparison. You’ll also find tips for getting the best rates available to you and advice on making sound financial choices around your auto loan.
Key Takeaways
- We named myAutoloan as the best auto loan provider in our most recent study, with rates as low as 4.75% for new car financing
- The average rate for a new car loan is 5.16%
- Shorter financing terms of 24 to 36 months generally come with the lowest interest rates.
- Your credit score is the single biggest factor in the loan rates you receive
Who Has the Best Auto Loan Rates
Based on our research, Autopay currently advertises the best annual percentage rate (APR) at 2.99% for new cars. myAutoloan, PenFed Credit Union and Consumers Credit Union also generally offer some of the lowest rates on the market. Borrowers with bad credit may find better rates from different lenders.
Interest rates change frequently and recently, have tended to go up. While the information in this article is accurate at the time of publication, rates may have changed since. Getting preapproval from multiple lenders is the best way to find out the rates available to you
Best Car Loan Rates: Comparison
The table below compares the lenders with the lowest auto loan rates. We’ve broken down their lowest APRs, auto loan terms, and credit requirements:
| Lender With Best Auto Loan Rates | Lowest APR | Loan Terms | Loan Amounts | Minimum Credit Score |
|---|---|---|---|---|
| myAutoloan | 4.75% | 12 to 84 months | $8,000 to $99,000 | 575 |
| Consumers Credit Union | 5.24% | Up to 84 months | No min/max | 620 |
| Autopay | 2.99% | 24 to 96 months | $2,500 to $100,000 | 560 |
| PenFed Credit Union | 4.89% | 36 to 84 months | $500 to $150,000 | 652 |
Best Auto Loan Providers
Our loans experts named myAutoloan as the best auto loan provider overall, thanks to its lower rates and convenient marketplace model. Consumers Credit Union, AutoPay, and PenFed Credit Union round out our top four.
In the following section, we outline some of the details about our top auto financing providers. You’ll find each company’s lowest advertised APRs, their pros and cons, and other key information about their loan services.
#1 myAutoloan: Best Loan Marketplace
New car loan starting APR: 4.75%
Used car loan starting APR: 4.99%
Refinance loan starting APR: 4.49%
Minimum credit score: 575
Minimum loan amount: $8,000
The lending process works a little differently at myAutoloan than at other providers. Rather than a direct lender or a broker model, myAutoloan is a marketplace for car financing. Borrowers enter their information into the site and then wait for lenders to make offers.
This model makes it easy to get multiple offers and compare them in one place. It also means that you’re likely to find some of the lowest APRs on the market at myAutoloan. A low minimum credit score of 575 makes the provider accessible to many.
The Better Business Bureau (BBB) gives the company A+ rating with accreditation. Among customers on Trustpilot, myAutoloan has an rating of 4.3 out of 5.0 stars from over 800 customers.
myAutoloan Pros and Cons
| myAutoloan Pros | myAutoloan Cons |
|---|---|
| Competitive starting APRs | Minimum loan amount of $8,000 |
| Relatively generous credit approval | Marketplace format isn’t for everyone |
| Extremely easy to compare rates | Not available in Hawaii or Alaska |
Keep reading: myAutoloan review
#2 Consumers Credit Union: Top Credit Union
New car loan starting APR: 5.24%
Used car loan starting APR: 5.49%
Refinance loan starting APR: 5.49%
Minimum credit score: 620
Minimum loan amount: $7,500
Consumers Credit Union ranked as our top credit union in our most recent loans study. While it is membership-only, the credit union offers membership for anyone in the country that pays a $5 fee and keep at least $5 in a savings account.
Through its partnership with TrueCar, Consumers Credit Union provides a search tool to help borrowers find a car that fits their needs and budget. However, members are not required to use the tool. The credit union also offers a noteworthy discount of 0.25% to members who set up autopay.
Consumers Credit Union currently has an A+ rating and accreditation from the BBB.
Consumers Credit Union Pros and Cons
| Consumers Credit Union Pros | Consumers Credit Union Cons |
|---|---|
| Starting APRs are relatively low | Requires good to excellent credit |
| Flexible loan terms and limits | Must become a member to get a loan |
| Generous autopay discount |
#3 Autopay: Most Well-Rounded
New car loan starting APR: 2.99%
Used car loan starting APR: 2.99%
Refinance loan starting APR: 2.99%
Minimum credit score: 560
Minimum loan amount: $2,500
Autopay is a financing aggregator – also known as a broker – that finds loan offers that are a good match for borrowers. The lending partner offers low rates to good credit borrowers, but is also open to others with a relatively low credit score requirement.
In addition to purchase loans, borrowers can find lease buyout loans, refinance loans, and cash out refinancing at Autopay. The provider is also one of only a few that lets borrowers prequalify with only a soft credit check, making it ideal for comparison shopping.
Autopay has an A+ rating and accreditation from the BBB. It also has one of the highest scores from customers on the BBB among providers in our study, with an average score of 4.5 out of 5.0 stars.
| Autopay Pros | Autopay Cons |
|---|---|
| Low introductory rates | May charge borrowers an origination fee |
| Only requires a soft credit check for pre-qualification | Loans can take longer to process than other providers |
| Strong ratings from customers | Loan approval can take up to two days |
#4 PenFed Credit Union: Best For Good Credit
New car loan starting APR: 4.89%
Used car loan starting APR: 5.54%
Refinance loan starting APR: 5.54%
Minimum credit score: 652
Minimum loan amount: $500
PenFed Credit Union is another credit union that cracked our top five. Like Consumers Credit Union, you must be a member to get a loan from the company, but anyone can join by making a $5 deposit. When you apply for an auto loan, PenFed refunds this deposit.
The lender is one of the most flexible in our study. Car buyers have the option to finance a private party auto sale at PenFed, something that’s not available at many providers. After applying, the credit union presents borrowers with multiple offers with varying rates and repayment terms. Members can also get a discount by using PenFed’s car buying service.
PenFed currently has an A+ rating from the BBB, but it is not accredited by the organization. The credit union has a very strong 4.6 out of 5.0-star rating on Trustpilot from over 1,200 reviews.
PenFed Credit Union Pros and Cons
| PenFed Credit Union Pros | PenFed Credit Union Cons |
|---|---|
| Some of the lowest APRs on the market | Requires membership to become eligible |
| Offers loans as small as $500 | APRs are higher without using a car buying service |
| High customer service score on Trustpilot | Medium or strong credit needed for approval |
Current Auto Loan Interest Rates
Auto financing rates have risen dramatically over the last year. The current average auto loan interest rate is 5.16% for new car purchases and 9.34% for used vehicle purchases.
However, your financing rates are highly dependent on a few key variables, with your credit score being the most impactful. In the graphic below, you’ll see the current average auto loan rates by credit score according to Experian’s Q2 Automotive Finance Market Report.
What Is A Good Auto Loan Interest Rate?
A good car loan rate is any rate that falls below the average for its category. In the table below, you’ll find the average rates for new and used vehicles from both banks and credit unions, based on data from the National Credit Union Association (NCUA).
| Type of Loan | Loan Term | Average APR: Credit Union | Average APR: Commercial Bank |
|---|---|---|---|
| Used car loan | 48 months | 3.77% | 5.49% |
| Used car loan | 36 months | 3.64% | 5.44% |
| New car loan | 60 months | 3.72% | 5.15% |
| New car loan | 48 months | 3.6% | 5.07% |
What Affects Auto Loan Interest Rates?
There are many factors to keep in mind when searching for the best auto loan rates. The rates you get for a car loan are affected by a variety of factors including:
- Credit score: Borrowers with poor credit scores face higher interest rates than those with good credit. Your score is the biggest factor in the rates you receive from auto lenders.
- Loan term: Shorter terms typically have lower interest rates. Consider making higher monthly payments to get a shorter-term loan with a lower overall cost.
- Credit report: Lenders look at your entire credit report, so two people with the exact same score can find different rates based on how their score is calculated.
- Income: Lenders can have minimum income requirements for borrowers to qualify and also to secure the best auto loan rates.
- Down payment: A higher down payment reduces the total amount of the loan and lowers the loan-to-value (LTV) ratio. As a result, making a larger down payment can net you a lower interest rate.
- Discounts: Many lenders offer rate discounts for setting up automatic payments on your account. You may be able to find other discounts, such as one for using a partner car buying service.
- Negotiation: If you get multiple prequalification offers, you may be able to use them to negotiate interest rates between lenders.
How to Get the Best Auto Loan Rates
There are a few different ways to save money and find the best auto loan rates. Below, we’ll outline some simple ways you may be able to reduce your interest rate for a new car, a used vehicle, or a lease buyout.
Raise Your Credit Score
Improving your credit score isn’t easy or fast, but it’s the best path towards getting lower interest rates. By meeting all your obligations on time and paying down debts, you can eventually raise your score and put yourself in a better financial situation.
Find a Cosigner
If your credit score isn’t quite as high as you’d like, you can see if a family member or friend with an excellent score can cosign on your loan. You can use their good credit to get the best auto loan rates.
However, many financial advisors strongly discourage this practice. Missing even one loan payment can hurt your cosigner’s credit rating and put a strain on personal relationships.
Buy Used Rather Than New
If saving money is your overall goal, you might look into purchasing a used or certified pre-owned car instead of a new one. A two- or three-year-old model will be significantly cheaper than a brand-new car. Even if your APR is 1 to 2% higher, you can still save money this way.
Make A Larger Down Payment
You can also make a larger down payment on a car to reduce your APR. The more money you put down on a vehicle the lower the risk is for the lender, so rates tend to be lower. If you can afford to put more money down for a vehicle, it can be a good option for getting the best auto loan rates.
Best Car Loan Rates: Conclusion
You can find the best auto loan rates for you through various banks, credit unions, online lenders, and dealers. There are also a variety of factors that affect your interest rates and many methods for you to get the lowest rates possible. We encourage you to look around and compare your options to find the best auto loan for you.
Best Auto Loan Rates: Compare Top Lenders
As mentioned, one of the simplest ways to find the best auto loan rates is to shop around. Do this before you get in the room with a loan officer at a car dealership. You can get as many offers as you want, as long as you make sure they only require a soft credit check.
When you’re ready to move forward with an offer, you can go through the full loan application process with the financial institution that gives you the best auto loan rates overall. Below you can start comparing the best auto loan rates available.
Compare Auto Loan Rates
Compare which options fit your budget, credit score, and term length below.
- All
- 24 to 84 months
- 36 to 84 months
- Up to 84 months
- 36 to 72 months
- 12 to 72 months
- All
- 300
- 500
- 560
- 575
- 580
Used Car Loan
Cred Score
Rate Term
APR*
- Below-average credit scores accepted
- Great interest rates
- Smooth and easy online experience
Refinance Loan
Cred Score
Rate Term
APR*
- Average monthly savings of $145
- Online application
- Browse loan options found specifically for you
General Loan
Cred Score
Rate Term
APR*
- Get approved in as little as 60 seconds
- All credit types gladly accepted
- Absolutely no obligation
Refinance Loan
Cred Score
Rate Term
APR*
- Great for customers with limited/no credit
- Offers special military rates
- A+ BBB rating
Refinance Loan
Cred Score
Rate Term
APR*
- Below-average credit scores accepted
- Great interest rates
- Smooth and easy online experience
Refinance Loan
Cred Score
Rate Term
APR*
- Specializes in auto refinancing
- A+ BBB Rating
- No application fee
New Car Loan
Cred Score
Rate Term
APR*
- Below-average credit scores
- Great interest rates
- Smooth and easy online experience
Refinance Loan
Cred Score
Rate Term
APR*
- Average savings of $111/month
- Secure, fully online platform
- Refinancing available for cars, trucks, or SUVs
Best Auto Loan Rate: FAQ
Below are some frequently asked questions and answers about the best auto loan rates:
Who has the best auto loan rates?
Currently, Penfed Credit Union has the best auto loan rates overall for new cars while myAutoloan has the best-used car loan rates available.
What is a good interest rate for a car right now?
A good APR for a car right now is anything less than 4%. Remember that the best auto loan rates are typically for new cars, so you may receive a higher number if you’re looking to finance a used model.
Which bank has the best auto loan rates?
At this time, Bank of America has its lowest car loan rates starting at 4.69%. You can get competitive rates like this if you purchase a new car and have excellent credit. Drivers may be able to find a lower APR from other banks that do not advertise their best auto loan rates.
What is a good interest rate for a 72-month car loan?
A 3.5% to 4% starting interest rate is pretty standard for a 72-month car loan. The best auto loan rates for drivers looking for six-year car financing are generally on the lower end of that range.
What are the lowest auto loan rates?
Currently, the best auto loan rates for new vehicles are slightly above 2%. Lenders compete with one another by offering low-interest rates to who they consider dependable borrowers.
How can I get a low interest rate on a car?
You can get a low interest rate on a car by finding a cosigner, boosting your credit score through paying off credit card debt, or making a larger down payment at the start.
Is 2.9% APR a good rate?
Yes, 2.9% APR is a good rate. While the best auto loan rates for new cars can sometimes be lower than this, you’re likely receiving a competitive APR.
Can I get a 0% interest rate on a vehicle?
Yes, but these offerings are typically only offered by dealerships and given to those with excellent credit scores.
Why are car loan interest rates so high?
Interest rates overall are higher due to massive inflation rates around the globe. In the United States, the standard federal interest rate has been raised heavily over the past year, causing the overall cost of borrowing money to soar.
Is it smart to pay off a car loan early?
Yes, it can be a smart move to pay off a car loan early so that you can save on interest. However, be sure to check whether there are prepayment penalties for paying off your car early, as that could wipe away your potential savings.
