Best Auto Loan Rates in April 2026
See today’s best auto loans — new car rates start at 3.39%
- Average car loan offers range from 6.81% to 23.82% APR, according to LendingTree data. Rates depend on your credit and whether you’re buying new or used.
- You can get a car loan with bad credit, but it’s more expensive — rates are a little over 15 percentage points higher on average than rates for people with excellent credit.
- Average new car loan offers on LendingTree are about 2% lower than used car loan offers.
- Lenders can offer you very different rates for the same auto loan — even if your credit score doesn’t change. Comparing offers from several lenders and choosing the cheapest one can save you $2,346 on average.
What are car loan rates right now?
Your credit score helps determine the annual percentage rates (APRs) you’ll be offered. Use the average APR offered on the LendingTree marketplace for your credit band to see what a good auto loan rate is right now.
| Credit score range | Average new car APR | Average used car APR |
|---|---|---|
| Excellent (800 and above) | 6.81% | 7.92% |
| Very good (740-799) | 6.83% | 7.59% |
| Good (670-739) | 8.22% | 10.75% |
| Fair (580-669) | 19.15% | 21.13% |
| Poor (Under 580) | 22.11% | 23.82% |
Not sure where you stand? Check your credit score for free with LendingTree Spring. We’ll also give you personalized recommendations to improve your credit score and qualify for lower rates.
How much will my car payments cost?
Make sure you can afford your car payments by using the averages from the table above to estimate your payments with the LendingTree auto loan calculator.
About 5% of Americans with auto loans are delinquent (or late) on at least one auto loan, according to a LendingTree survey. Do the legwork now to make sure you have plenty of room in your budget to afford your monthly payment.
Should I get a car loan?
- Your payment fits in your budget, with room to spare for emergencies
- You need a car right now or can comfortably afford one
- You’ve compared offers from several lenders to find the best price
- You can’t afford current high car prices (consider used cars and leases)
- You have bad credit and can afford to wait (improving your credit could save you thousands)
What to do when you can’t afford a car loan
Got an offer but can’t afford the monthly payments? Here are some strategies to make your payments cheaper.
- Taking time to improve your credit before you buy could save you thousands of dollars on your car loan. But you’ll need to wait to buy your car, and improving your credit likely means making sacrifices to pay off debt.
- Getting a longer loan term will likely make your monthly payments cheaper, which could be necessary if you need a car now. Just know that you’ll pay more money in interest over the course of your loan using this method.
- Shopping around for a car loan just means getting offers from several different lenders and comparing them to find the cheapest one. LendingTree research shows that borrowers in every credit band can save thousands of dollars using this strategy.
How LendingTree works to get you the cheapest auto loan rates
You could save an average of $2,346 on your car loan by using the LendingTree marketplace to shop for loans and then choosing your cheapest offer. Fill out one form and get lenders from the country’s largest network to compete for your business.
Tell us what you need
Take two minutes to tell us who you are and how much money you need for your vehicle — we’ll take care of the rest. It’s free, simple and secure.
Shop your offers
We’ll send you offers from up to five trusted lenders. Compare your offers side by side to see which one will save you the most money.
Get your money
Finalize your loan with your lender, and you’ll be on the road in no time. — you could see money in your account in as soon as 24 hours.
Best auto loans
| Lender | Starting APR | Term | Amount | |
|---|---|---|---|---|
|
3.39% | 36 to 84 months | Up to $150k | |
|
3.50% | 12 to 84 months | Up to $100k | |
|
4.65% | 24 to 96 months |
$2.5k – $100k |
|
|
4.99% (with discounts) | Up to 84 months | Up to 130% of the car’s value | |
|
5.09% | 24 to 84 months | Starting at $4k | |
|
5.49% | 24 to 72 months |
$500 – $100k |
|
|
5.29% | 48 to 72 months | Starting at $7.5k | |
|
6.49% (with autopay) | 24 to 84 months |
$5k – $100k |
|
|
7.69% (with autopay) | 12 to 84 months |
$5k – $100k |
|
|
Not specified | 12 to 84 months |
$4k – $750k |
Learn more about how we made our picks for the best auto loans.
Best for: Rate discounts for using a car-buying service — PenFed Credit Union
- Starting APR
- 3.39%
Please note that these rates displayed only apply to those who use PenFed’s car-buying service to buy a car. If you choose not to use this service, starting APRs are higher.
- Free car-buying service helps you compare used and new cars
- Cheaper rates if you use car-buying service
- Can finance up to 25% more than what the car is worth for cash in your pocket
- Have to become a member to borrow (but everyone can apply)
- Can only get your loan as a check in the mail
PenFed Credit Union offers a rate discount if you use its free car-buying service, powered by TrueCar. Rates for new cars purchased through PenFed’s car-buying service start at 3.39%, and used car rates start at 4.34%.
Financing a car through PenFed’s car-buying service will give you access to one of the lowest starting car loan rates available now.
But you don’t have to use the car-buying service to get competitive rates with PenFed. New car loan rates start at 4.19% and used car loan rates start at 4.79% when you don’t use the service.
Like other credit unions, PenFed requires you to become a member before you can borrow. It’s easy to join — everyone can apply.
To qualify for a PenFed loan, you have to meet the following requirements:
- Membership: PenFed membership (anyone can join)
- Administrative: Open a PenFed savings account with a $5 deposit (may need to submit documents to verify your identity and income)
Best for: Cheap auto loan rates on short loans — Southeast Financial Credit Union (SFCU)
- Starting APR
- 3.50%
- Competitive rates for short loan terms
- Could get a car loan with no credit if you recently graduated from college or trade school
- Can apply to skip a payment if you need extra time (but it costs $60)
- Have to become a member to borrow (but it’s easy to join)
- Can’t check rates without hurting your credit
- Not many branch locations
Credit union car loans tend to offer the lowest rates, and Southeast Financial Credit Union (SFCU) is no exception. It’s frequently near 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 APR as low as 3.50% on a 12-month term.
You can become a member and apply for your car loan with SFCU online from anywhere in the U.S., but if you prefer to do business in person, you’ll likely need to look elsewhere for a car loan — SFCU only has 13 physical branches.
You must have a credit score of at least 600 to qualify for an auto loan. You also need to join the credit union before you can borrow.
All SFCU members must open a savings account with a deposit of at least $5. To become a member, you must meet one of the requirements below:
- Make a $5 donation to Autism Tennessee
- Be a current employee or retiree of a Southeast Financial Select Employee Group
- Be related to a current SFCU member
- Live, work, worship or go to school in certain parts of Tennessee, Kentucky or Mississippi
Best for: Bad credit car loans — Autopay
- Starting APR
- 4.65%
- Accepts less-than-perfect credit
- Check rates without hurting credit score
- Works with a large network of lenders
- No mobile app
It’s not always easy to find an auto loan when you have bad credit, but Autopay works with people with scores as low as 580. Autopay also offers prequalification with a soft credit check, which won’t impact your credit score. Not all lenders and marketplaces offer this option.
Autopay is an auto loan marketplace. It lets you shop its network of lenders for free, with no impact to your credit score. Some of Autopay’s partners work with lower credit scores, but only the most well-qualified borrowers will get Autopay’s starting APR of 4.65%.
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 need to meet the requirements below:
- Credit score: 580+
- Income: At least $2,500 per month
- Vehicle restrictions: Car must be less than 10 years old and have no more than 150,000 miles
- Administrative: You must provide your driver’s license, insurance, proof of income and residence, and a payoff letter if you’re refinancing
Best for: Used car loans overall — Digital Federal Credit Union (DCU)
- Starting APR (with discounts)
- 4.99%
- Same rates for used and new cars
- Can borrow up to 30% more than the vehicle’s value
- 0.25% rate discount for fully electric cars
- Must join credit union (but it’s easy to become a member)
- Can’t check rates without hurting your credit
Unlike most lenders, Digital Federal Credit Union (DCU) doesn’t charge a higher rate for used car loans. You could get the same low rate whether you’re buying new or used.
If you have excellent credit, you might be able to borrow more than the car is worth with a DCU car loan. You can keep the extra money or use it to cover related expenses like car registration and insurance.
Like other credit unions, DCU requires you to join before you can borrow money. You’ll also need to take a hard credit pull to check your eligibility — you won’t be able to prequalify.
You must be a DCU member to take out a loan. To join, you must open a DCU savings account with a deposit of at least $5 and meet one of the following requirements:
- Live, work, worship or go to school in certain Massachusetts or Oregon communities
- Work for a participating employer
- Join a participating association (annual dues between $10 and $15)
Best for: Car loans overall — Capital One
- Starting APR
- 5.09%
Capital One auto loans APR and loan term disclosure: Please note that your starting APR depends on the type of car loan you get and the length of your loan term. Capital One new auto loans: Starting at 5.09% APR for 60-month loan terms and starting at 5.29% APR for 72-month loan terms. Capital One used auto loans: Starting at 5.81% APR for 60-month loan terms and starting at 5.91% APR for 72-month loan terms.
- Very low credit requirement (500+ credit score)
- Can get prequalified or preapproved
- Auto Navigator tool can help you find your next car and stick to your budget
- Can only buy from certain dealerships
- No customer service on Sundays
- No interest rate discounts
Capital One offers car loans to borrowers with both good and bad credit, and its Auto Navigator tool can make it easier to find a car for sale near you. Capital One also has branches and cafés in case you’d prefer to do business in person.
Use Capital One’s Auto Navigator tool to prequalify for a car loan and find your car all at once. Because prequalifying comes with only a soft credit check, it won’t hurt your credit to see your rates.
That said, Capital One won’t let you use the loan to buy a car just anywhere — you’ll have to use 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 and borrower eligibility requirements. To be eligible for financing, you and the car you’re financing need to:
- Be a model year that’s no more than 10 years old
- Have fewer than 120,000 miles
- Be purchased at a participating dealership
- Be worth at least $4,000
- Have a monthly income of at least $1,500
Best for: Bad credit used car loans — CarMax
- Starting APR
- 5.49%
- Can buy a car online and get it delivered to your house or pick it up at a store
- You have up to 10 days to decide whether you want to keep the car
- Comes with a limited warranty that lasts up to 90 days or 4,000 miles
- No minimum credit score requirement
- Can only use CarMax loans to buy CarMax cars
- Car delivery not available everywhere
- Test drives aren’t allowed on home deliveries
- Can’t negotiate car price
Buying a car online can be stressful, 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 30-day limited warranty, and in some states, your warranty could last 90 days or 4,000 miles.
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.
Also, you can only get a CarMax loan if you’re buying from CarMax. CarMax does business in most states. Check the CarMax website to see if your state is one of them.
Best for: Full-service bank experience — Bank of America
- Starting APR
- 5.29%
- No loan documentation fees
- Rate discounts for members
- Don’t need to be a Bank of America customer
- Can’t buy from an independent dealer or private party
- Not good for cheap used car loans (can’t borrow less than $7,500)
- Can’t check rates without taking a credit hit unless you have a Bank of America login
Bank of America (BoA) could make sense for your next auto loan if you want a loan from a big institution with a large physical footprint. 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.
To get a Bank of America auto loan, the car you’re buying needs to:
- Be less than 10 years old
- Have less than 125,000 miles
- Be worth at least $6,000
- Be for personal use only
- Not be a commercial, heavy-duty truck or van
- Not have a salvage or branded title
Best for: A quick and easy car loan experience — LightStream
- Starting APR (with autopay)
- 6.49%
Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $25,000 loan at 6.49% APR with a term of 3 years would result in 36 monthly payments of $766.11. © 2024 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
- Get money as soon as the same day you apply
- No restrictions on year, make, model or mileage
- Does not require a down payment
- Don’t need to have a specific vehicle in mind when you apply
- Must have good to excellent credit to qualify
- Can’t check rates without affecting your credit
- Higher rates than most traditional auto loans, since you aren’t using your car as collateral
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 day you apply. Plus, LightStream doesn’t require appraisals and doesn’t have any vehicle restrictions. In short, LightStream’s auto loan process is easier than that of traditional lenders.
LightStream auto loans are unsecured — that means LightStream doesn’t use your car as collateral, as is the case with 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:
- At least five years of on-time payments under a variety of accounts (e.g., credit cards or auto loans)
- Stable income and the ability to handle paying their current debt obligations
- Savings, whether in a bank account, investment account or retirement account
Best for: Private-party car loans — PNC Bank
- Starting APR (with autopay)
- 7.69%
- Car doesn’t have to be fully paid off by the current owner
- Rate discount for autopay through a PNC checking account
- Could give you an extension if you have a financial hardship
- Can only apply for a private-party auto loan in person at a branch
- Can’t check rates without affecting your credit
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.
To get a car loan from PNC, you have to meet the following criteria:
- Administrative: PNC Bank doesn’t offer prequalification. If you want to check rates, you’ll have to take a hard credit hit.
- Application process: You can formally apply online for most of PNC’s auto loans, but you need to go to a branch to get a private-party auto loan from PNC. PNC currently has branches in select states.
- Car requirements: Vehicle must be model age 2017 through 2027 and have a maximum of 80,000 to 100,000 miles.
- Membership: You don’t need to be a PNC customer to get a loan.
Best for: Dealerships in the Chase network – Chase Bank
- Starting APR
- Not specified
- Check rates without hurting your credit
- Sends your loan approval directly to the dealer
- Chase Bank Private Client members get a 0.25% rate discount
- No down payment required
- Must buy car from a partner dealership
- No published info on rates
- Need to know what car you want to buy when applying
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 do extra paperwork.
Unfortunately, you can’t use a Chase auto loan anywhere — you’ll have to buy your car from a partner dealership. The good news is that Chase partners with thousands of dealers nationwide.
To get auto financing with Chase Bank, you have to buy your car from a partner dealer. For the car to be eligible, it needs to:
- Be less than 10 years old (or less than five years old, if a Tesla)
- Have 120,000 miles or less
- Not be a commercial vehicle
- Not have a branded or salvaged title
- Not be used for ridesharing
Notably, you don’t need to be a current Chase customer to get an auto loan., you won’t need to be a current Chase customer to get an auto loan.
Understanding auto loans and interest rates
What do I need to get a car loan?
- Credit score: It usually takes good credit (670+) for an affordable car loan. It’s possible to qualify with a lower score, but rates will be higher.
- Credit history: Auto loan lenders often like to see at least two years of positive credit history, preferably one that includes a past auto loan.
- Debt-to-income ratio: Debt-to-income (DTI) ratio measures how much you earn compared to your current level of debt, like credit card debt, mortgage/rent and auto loan debt. The best rates usually require a DTI of 35% or less, but some lenders accept a DTI of as high as 46% to 50%.
- Loan-to-value ratio: Auto loan lenders generally prefer a loan-to-value (LTV) ratio of 80% or less. LTV compares how much you’re borrowing to the actual cash value of the vehicle you’re financing. Higher LTVs generally mean higher auto loan rates.
- Paperwork: If you’re financing through the dealer, bring your government-issued ID and an insurance declarations page showing full coverage. Some dealers may require proof of income or residency, so you may want to call ahead to avoid multiple trips.
Why car loan rates vary
- Your credit history and credit score: If your credit score is 669 or below and you have little to no credit history, expect higher rates.
- Used car loans versus new car loans: Used car loans usually carry higher rates than new car loans. Used car loans are riskier for lenders because used cars are harder to value and don’t depreciate in value as predictably as brand-new cars.
- Long loan terms versus short loan terms: Longer loan terms typically have lower monthly payments since you have more months to spread your balance across. In return, rates are higher since you have more time to fall behind on car payments.
- Down payment versus no money down: Making a down payment reduces your LTV, which in turn can bring down your car loan rate. The 20/4/10 car-buying rule says you should make a down payment of at least 20%.
- Lender variability: Not unlike car insurance companies, every auto loan lender has its own way of calculating rates. Shopping around can ensure you get the best rate possible.
How to get the lowest auto loan rates
According to a LendingTree study, improving your credit score from fair (580-669) to very good (740-799) could save you more than $2,316 on your auto loan over time.
Improving your credit score isn’t the only way to get a better car loan rate. You could also:
- Buy a car that qualifies for special financing: If you’re open to captive financing, then shop only for years, makes and models that have a special financing offer.
- Use a car-buying service: Your current bank or credit union might offer a car-buying service and discount.
- Buy during the holidays: Car manufacturers often run special financing deals at the end of the year and during the holidays, so you could try to time your buy.
- Use a loan comparison service: With LendingTree, you can compare auto loans from up to five lenders, and comparison is key to finding the lowest rates. Plus, nearly 9 in 10 LendingTree users get at least one auto loan offer.
- Get preapproved: Get a preapproved car loan and ask the dealer if they can do better. The dealer might be motivated to get you a cheaper rate in order to sell you a car.
Prequalification is often the first step when shopping for a car loan. It doesn’t hurt your credit and can help you decide which lenders are worth getting preapproved for.
Preapproval is as close to a car loan as you can get without actually finalizing your offer. It provides more accurate rates, but requires a hard credit pull. Get your preapprovals done within 14 days of each other to minimize damage to your credit.
How are tariffs affecting car prices?
Tariffs are raising car prices, even for cars manufactured in the U.S. Here’s what you need to know:
- There is currently a tariff of about 25% on cars built outside of the United States, but the exact rate varies by country.
- Car buyers can expect to pay up to $6,000 more for new cars that cost less than $40,000, according to Kelley Blue Book.
- Car parts are also subject to tariffs, so even domestic brands are impacted. No vehicles are 100% manufactured and assembled in the United States.
- Used car prices aren’t directly affected by tariffs, but demand for used cars may rise as people look for cheaper cars. This could push used car prices higher.
What does this mean for you?
It’s more important than ever to shop for a good deal on your car loan. A lower interest rate can help you offset the higher cost of buying a car right now.
Car loan terminology
- APR: An annual percentage rate (APR) measures the total cost of your loan, including interest and fees. The lower your APR, the cheaper your loan.
- Loan amount: Most auto loan amounts start at several thousand dollars. If you want to finance a cheaper used car, make sure the lender’s loan amounts fit your needs.
- Financing term: Your financing term is the length of time you have to pay off your loan. Terms between 12 and 84 months are the most common. Long car loans typically have lower monthly payments, but you will pay more total interest.
- Doc fees: Doc fees are intended to cover the costs the dealership or lender incurs for filing paperwork. While you can sometimes negotiate dealer fees, you’ll often have better luck simply choosing a lender that charges lower fees to reduce your overall costs.
- Dealer reserve: Dealer reserve applies to indirect auto loans. When a dealer shops for financing on your behalf, lenders provide the dealer with a “buy rate.” The dealer can then mark up that rate to earn a profit for the dealership.
- Well-qualified buyers: A well-qualified buyer is someone who qualifies for the best special financing deals on captive auto loans. There’s no single definition of a well-qualified buyer, but it usually requires a 740+ credit score, stable income and a DTI below 35%.
How we chose our picks for best auto loans
We reviewed 25 auto lenders to determine the overall best 10 auto loan lenders. To make our list, lenders must offer auto loans with competitive APRs. From there, we prioritized the following factors:
Accessibility: We chose lenders with auto loans that are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding, and easier and more transparent prequalification, preapproval and application processes.
Rates and terms: We prioritize lenders with more competitive starting fixed rates, fewer fees, and greater loan options for repayment terms, amounts and APR discounts.
Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that have self-service payment options (like a mobile app), provide reliable customer service and offer unique perks.
According to our systematic rating and review process, the best car loans come from PenFed Credit Union, Southeast Financial Credit Union, Autopay, Digital Federal Credit Union (DCU), Capital One, CarMax, Bank of America, LightStream, PNC Bank and Chase Bank. LendingTree reviews and fact-checks our top lender picks on a monthly basis.
LendingTree partners with dozens of auto lenders, but partners and non-partners receive equal treatment in our scoring and review process. Read more about our editorial guidelines and standards.
Frequently asked questions
We’ve named Capital One the best car lender overall. That said, the best place to finance a car is with the lender that offers you the lowest rates. You can compare rates from real offers on the LendingTree marketplace in minutes.
If you don’t mind using a TrueCar car-buying service, PenFed is currently offering the lowest auto loan rates of all the lenders we’ve reviewed (3.39% for new cars, and 4.34% for used cars).
If you don’t want to use a car-buying service, Southeast Financial Credit Union may be your next best bet — its rates start at a very competitive 3.50%.
But remember that only the most qualified buyers get the lowest APRs, so your rate may be higher.
Choose a car loan term of four years or less whenever possible. Shorter loan terms typically come with the lowest rates, and you’ll pay less overall interest.
A shorter loan term also helps to protect you against an upside-down car loan. The longer it takes you to pay off your car, the more time your car has to depreciate.
Use our auto loan calculator to see how different term lengths can impact your monthly payment.
According to LendingTree’s most recent data, the average auto loan interest rate for a 700 credit score is 8.22% if you’re buying a new car. If you’re buying used, 10.75% is the average.
Lenders also consider your income, repayment term, credit history and other factors to determine your auto loan rate. Your rate could be higher or lower depending on your situation.
People often choose longer loan terms to get smaller monthly payments. That’s because you have more months 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.
You can usually negotiate your rate, but it depends on where you’re buying your car. Some dealerships, including CarMax, don’t negotiate. But most dealerships are willing to haggle. Consider getting preapproved for a car loan and asking the dealer to beat the preapproved rate.