Your credit score has a huge hand in the average annual percentage rates (APRs) you’ll be offered. We’ve compiled average auto loan rates offered on the LendingTree marketplace to help you get an idea of what to expect.
| Credit score range | Average new car APR | Average used car APR |
|---|---|---|
| 800+ | 7.26% | 7.20% |
| 740-799 | 7.47% | 6.92% |
| 670-739 | 8.88% | 8.12% |
| 580-699 | 19.75% | 12.00% |
| Under 580 | 22.55% | 21.61% |
Source: Average of over 225,000 offers for 60-month loan terms of at least $5,000 made to customers on the LendingTree platform for the purchase of cars and light trucks in Q2 2025.
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LendingTree senior writer and former car dealer |
“You can tell it’s a good time to buy a car based on expectations for rates and prices. If it strongly looks like one or both will go up and stay elevated — you should get the car you want soon. “Most people think the Fed will cut rates at the September meeting. And, by the end of the year, potential new tariffs could increase car prices, which are already going up. Getting a new car this fall, after a rate cut and before potential tariffs, wouldn’t be a bad idea.” |
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:
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.
5.36%
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.
5.54%
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.
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.
Richard Cihak
Great experience, and fast! I was shocked to find out my bank didn't make direct car loans (after over 30 years of banking with them!). Googled car loans and lending tree popped up. Completed their questionnaire, made a selection of the offers they had. Filled out the lender's application and was preapproved in minutes! I am glad my bank didn't make direct auto loans because this process was so easy!
M. Christensen
It was easy. Quick and much appreciated. I was surprised how quick it processed and efficient and easy to do. Thank you.
Travis Mattson
This was by far the easiest, most hassle free loan I've ever gotten. Everything was upfront and honest. As long as you have the basic info that you would need for any loan before hand, this was very smooth. And extremely fast. The fastest I've experienced in my lifetime. Highly recommended. Easily 5+ stars, based upon my very recent experience. Very satisfied.
|
LendingTree senior writer and former car dealer |
“The most common mistake when buying a car is saying yes to a monthly payment. When you’re talking about money, do one thing at a time. “Get an agreement on the price of the car you want, then the price for your trade-in — if you have one — and, finally, the rate of your car loan. “If you agree to a monthly price first, the dealer will do everything to keep near that payment while increasing their bottom line. They could up your APR, up the length of your loan or try to slip in things like an extended warranty.” |
Car prices have taken drivers on a ride — and loan amounts have followed. From pandemic-driven supply shortages to inflation and new tariffs, financing trends can offer surprising insight into where the auto market is headed.
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.
From Q1 2021 to Q1 2025, new car loan amounts peaked above $41,000 and remain elevated. Used car loans, which surged during the used car boom, have started to moderate — offering potential value for buyers.
We look for lenders with fewer barriers to approval and award points for lower credit requirements, nationwide access, fast funding and simple applications.
We prioritize lenders that offer low starting rates, minimal fees, flexible terms and APR discount opportunities.
We choose lenders with strong reputations, convenient self-service tools, responsive support and borrower-friendly perks.
We reviewed 25 auto loan lenders to determine the overall best 11 lenders by these metrics. According to our systematic rating and review process, the best auto loans come from Southeast Financial Credit Union, PenFed Credit Union, Navy Federal Credit Union, Autopay, PNC Bank, Digital Federal Credit Union, Capital One, Bank of America, CarMax, LightStream and Chase Bank. LendingTree reviews and fact-checks our top lender picks on a monthly basis.
Senior managing editor and Certified Financial Education Instructor℠ |
“Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a Certified Financial Education Instructor℠, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.” |
Jessica’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Our personal loan writers and editors have 32 years of combined editorial experience and 28 years of combined personal finance experience.
100% of our content is reviewed by certified personal finance professionals and meets compliance and legal standards.
We put your interests first. We’ll tell you about any loan drawbacks and be clear about when to consider alternatives.
In Q2 2025, LendingTree marketplace data showed average car loan rates ranging from around 7.00% for excellent credit on new cars to over 22.00% for credit scores under 580 on used cars.
Based on our unbiased, expert analysis, the best places to finance a car are:
Boosting your credit score, putting down a big down payment, shopping around and comparing offers, getting a cosigner — these are all things that could help you get a lower auto loan rate. Use LendingTree and compare offers from up to five lenders for free, with no impact to your credit.
Usually, yes. Per law, federal credit unions can’t charge auto loan interest rates above 18.00%. However, you usually have to meet some sort of membership requirement. LendingTree’s network includes credit unions, banks and online lenders so you can compare all in one place.
Yes, it’s possible, but you will likely pay a high rate. If you don’t have time to improve your credit before buying a car, your best bet would be to shop with bad credit car loan lenders.
You can also boost your odds by:
No, checking rates with LendingTree won’t hurt your score. We use a soft credit inquiry when we shop for you. If you move forward with the loan, the lender will then run a hard credit check. This can drop your score by a handful of points.
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.
