3.50%
12-84 months
Up to $100,000
Credit union car loans tend to offer the lowest rates, and Southeast Financial Credit Union (SFCU) is no exception. It’s frequently at the top of our list of the best car loan rates.
SFCU’s rates are especially low on short-term car loans. If you have excellent credit, you could qualify for an annual percentage rate (APR) as low as 3.50% on a 12-month term.
But if you prefer to do business in person, SFCU might not be the best choice — that is, unless you live in central Tennessee. That’s where nearly all of SFCU’s brick-and-mortar branches are located.
SFCU doesn’t offer prequalification, so you’ll need to agree to a hard credit hit to see if you’re eligible. You’ll also need to join the credit union before you can borrow.
All SFCU members have to open a savings account with a deposit of at least $5. To become a member, you’ll need to meet one of the requirements below:
3.89%
36-84 months
Up to $150,000
If you want to compare car prices and get an auto loan at the same time, consider using PenFed Credit Union’s free car-buying service, in partnership with TrueCar. PenFed offers a lower rate (starting at 3.89% for new cars) if you finance a car through the program.
PenFed offers car loans whether or not you use its free car-buying service. However, financing a car through the service will give you access to one of the lowest starting car loan rates available now. If you don’t use its car-buying service, PenFed’s auto loan rates for a new car start at 4.69%.
Like with any credit union auto loan, PenFed requires you to join before you can borrow. Still, it’s easy to join, as membership is open to everyone.
To qualify for a PenFed loan, you have to meet the following requirements:
4.09%
12-96 months
Starting at $250
If you have an eligible connection to the armed forces, you can join Navy Federal Credit Union (NFCU). Being a member provides you access to a variety of banking and borrowing services, including low car loan rates.
NFCU gives active-duty and retired military a 0.25% rate discount on auto loans, along with other unique perks. For instance, if you’re on active duty, you can get paid early if you get your paycheck directly deposited into an Active Duty Checking account.
Still, like many other car loan lenders, NFCU doesn’t disclose its minimum credit score requirements. It also has strict membership requirements that not everyone will meet.
Navy Federal Credit Union only offers loans to people with military connections, including:
You’ll need to meet the following requirements:
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
4.85%
24-96 months
$2,500-$100,000
It’s not always easy to find an auto loan when you have bad credit — however, Autopay works with borrowers with as low as 580. You can also protect your credit score by prequalifying for Autopay. Not all lenders and marketplaces offer this option.
Autopay is an auto loan marketplace. Though its starting APR is 4.85%, it’s possible you won’t be offered a rate this low if you have bad credit (as is the case with many lenders). Associated fees can also be hard to budget for since they vary by lender.
Autopay connects borrowers to partner lenders and financial institutions. These partners all have different eligibility requirements.
To use the marketplace, you and the vehicle you’re financing must meet the requirements below:
5.34% (with autopay)
12-84 months
$5,000-$100,000
Buying a car from a private party instead of a dealership can save you money, but not all lenders fund these types of purchases. PNC Bank offers several types of auto loans, including private-party car loans.
With PNC Bank, you might even be able to buy a car that isn’t yet fully paid off. As long as the seller comes with you to your loan closing, PNC can use a portion of your loan to pay off the existing loan. Then, you can transfer ownership.
PNC Bank doesn’t offer prequalification — so if you want to check rates, you’ll have to take a hard credit hit.
You can formally apply online for most of PNC’s auto loans. However, if you’re getting a private-party auto loan, you need to go to a branch — currently, PNC has branches in 27 states. Either way, you don’t need to be a PNC member to borrow.
5.49% (with discounts)
Up to 84 months
Up to 130% of car’s value
Most lenders charge a higher APR on used car loans, but not Digital Federal Credit Union (DCU). Whether you’re buying used or new, you can enjoy the same low rate.
If you have excellent credit, you might be able to borrow more than what the car’s worth with a DCU car loan. In this case, any money left over after you finance your car goes in your pocket. This could help you cover registration and insurance costs.
Like other credit unions, though, you’ll have to become a member to borrow. You’ll also need to take a hard credit pull to check your eligibility — you won’t be able to prequalify.
As a credit union, DCU requires you to be a member to take out a loan. To join, you’ll need to:
5.64%
48-72 months
Starting at $7,500
Bank of America could make sense for your next auto loan if you prefer banking at a big institution with a large physical footprint. And if you keep an eligible balance in your Bank of America and/or Merrill investment accounts, you could qualify for a rate discount on a new auto loan.
Auto financing from a big bank can have its perks. Compared to small, regional banks, large banks tend to have more of a digital presence. For example, Bank of America has an auto loan application that’s specifically designed for mobile. It also offers car loans nationwide.
Bank of America auto loans are open to anyone, but only Preferred Rewards members qualify for APR discounts. To be a Preferred Rewards member, you’ll need to have an eligible Bank of America account with a starting balance of $20,000. You also can’t get your Bank of America auto loan through a dealer if you want this discount — instead, you have to apply with Bank of America directly.
To get a Bank of America auto loan, the car you’re buying needs to:
5.75%
24-72 months
$500-$100,000
Buying a car online can be scary, but CarMax’s 10-day guarantee might put you at ease. You have up to 10 days to return the car to CarMax if it’s not a good match. You’ll just have to bring it back in the same condition it was in when you bought it. Plus, every CarMax car comes with a 90-day, 4,000 mile warranty on your car’s major components.
CarMax has a used car website in addition to brick-and-mortar stores. You can buy a car online and as long as you live close enough, get your car delivered to your door. If you want to test drive it before buying, though, you’ll have to go to the dealer.
CarMax doesn’t have a minimum credit score requirement, but you may need to provide documents like proof of income and proof of residency.
You can also only get a CarMax loan if you’re buying from CarMax. CarMax does business in 41 states. There are no CarMax stores in:
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
5.50%
24-84 months
Starting at $4,000
Capital One offers car loans to both good and bad-credit borrowers, and its Auto Navigator tool can make it easier to find a car near you. Capital One also has branches and cafés, in case an in-person element to borrowing is important to you.
Use Capital One’s Auto Navigator tool to prequalify for a car loan and find your car all at once. Because prequalifying is a soft credit check, it won’t hurt your credit to browse.
That said, Capital One won’t finance a vehicle purchase from just anywhere — you’ll have to buy from a Capital One partner dealer.
You could be eligible for a car loan through Capital One as long as you have a credit score of at least 500. You can prequalify on Capital One’s website to get an idea of where you stand.
Capital One also has vehicle eligibility requirements. To be eligible for financing, the car needs to:
Some older models may still be eligible as long as they have fewer than 150,000 miles on the odometer, but you’ll need to speak with your dealer or Capital One for more information.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
6.49% (with autopay)
24-84 months
$5,000-$100,000
As long as LightStream approves you and you complete the necessary steps by 2:30 p.m. Eastern time on a business day, you could get your money on the same day that you applied. Plus, LightStream doesn’t require appraisals and doesn’t have any vehicle restrictions. In short, the LightStream’s auto loan process is easier than traditional auto loan lenders.
LightStream auto loans are unsecured — that means it doesn’t use your car as collateral, as is the case on a traditional auto loan. However, LightStream’s rates are a little higher than others on this list. (In contrast, collateral loans typically come with cheaper rates because they’re less risky for the lender.)
LightStream doesn’t specify its exact credit score requirements, but you’ll need to have good to excellent credit to qualify. Most of the applicants that LightStream approves have the following in common:
You’ll also need to have a valid Visa or Mastercard credit card to accept your loan, but only for verification purposes; LightStream will not charge your card.
Not specified
12-84 months
Starting at $4,000
Chase Bank can make it easy to buy a car from a partner lender near you — just get prequalified online. It’ll then send your prequalification offer directly to the dealer, so you won’t have to mess with paperwork.
Unfortunately, you can’t use Chase at all car dealers — you’ll have to purchase within the Chase network. The good news is that Chase partners with thousands of dealers countrywide. But because it doesn’t advertise its rates, you’ll also need to prequalify to see what APRs it offers.
To get auto financing with Chase, you have to buy your car from a partner dealer. For the car to be eligible, it needs to:
Notably, you won’t need to be a current Chase customer to get an auto loan.
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The Federal Reserve made no changes to interest rates at its June 2025 meeting. The federal funds rate is currently at a range of 4.25%-4.50%. The Fed last cut rates in December 2024.
What this means for you: In general, when the Fed cuts the federal funds rate, new car loan rates tend to fall, too.
Because the Fed made no changes to rates at its latest meeting, don’t expect loan rates to go down soon.
It’s hard to predict if or how auto loan rates will change in 2025.
So if you’re shopping for a car, focus on what you can control: saving for a down payment so you can take out a smaller loan, and using a site like LendingTree to get preapproved for the best rate before setting foot in a car dealership.
Chief consumer finance analyst |
“Auto loan interest rates are still sky-high this summer 2025, and are likely to remain that way, at least for a while.” |
A LendingTree survey found that more than 3 in 4 (77%) Americans worry that tariffs will drive up the cost of owning a car. “Anyone shopping for a new or used car in the second half of 2025 should expect to pay higher prices when they buy,” Schulz says.
From pandemic shortages to inflation and now tariffs, car prices have been a wild ride. And as prices rise, so do loan amounts.
Use the graph below to see how loan amounts have increased over time. Although you can’t predict exactly where car prices are headed, trends can help you compare your car price to the highs and lows.
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LendingTree is a marketplace, built to save you money — we don’t make loans, we find them. In fact, we’ve been finding the best loans for Americans for more than 20 years. Our marketplace is the largest in the country, and it’s filled with lenders you know and trust.
Generally, the best place to finance a car is with the lender that offers you the lowest rates. The only way to truly know if a lender is giving you the most competitive rate is to shop around.
The average auto loan rate for new cars is 6.61%, according to the most recent data from Experian. The average rate for used car loans is 11.74%. You can use these as a benchmark to measure your auto loan rate against. Remember, only the most qualified buyers get the lowest APRs.
For more details, see the table under the section How your credit score impacts auto financing rates.
Shorter loan terms typically carry the lowest rates. At the same time, a shorter term can cause a higher monthly payment, since you’ll have less time to spread your balance across. Use our auto loan calculator to see how different term lengths can impact your monthly payment.
According to Experian’s most recent data, the average auto interest rate for a 700 credit score (technically 661-780) is 6.70% if you’re buying a new car. If you’re buying used, 9.63% is the average.
Even so, lenders don’t just look at your credit score when determining your auto loan rate. They typically include your income, repayment term, borrowing history, employment history and additional factors. Your quoted rate could be higher or lower, depending on your unique situation.
Many people choose a longer loan term because they typically come with a lower monthly payment. That’s because you have more time to spread your balance across.
However, the longer your loan term, the more overall interest you’ll pay. Loans with longer repayment terms also generally have higher rates than shorter ones. Further, the longer you have an outstanding balance, the higher the risk is for the lender (you’ll have more time to fall behind).
Auto loan rates are usually negotiable, but it depends on where you’re buying your car. Some dealerships, including CarMax, don’t negotiate — however, most dealerships are willing to haggle. You might have luck by bringing in a preapproved car loan and asking the dealer to beat its rate.
