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Best Auto Loan Rates: Compare Top Lenders
Gravity Lending
APR range
4.99% to 14.99%
Minimum Credit Score
640
Loan amounts
$10,000 to $200,000
4.99% to 14.99%
640
$10,000 to $200,000
Compare the Best Auto Loan Rates
| COMPANY | FORBES ADVISOR RATING | MINIMUM RATE | LOAN AMOUNT | LEARN MORE |
|---|---|---|---|---|
 
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Starting at 3.39%
|
$500 to $150,000
|
Read Our Full Review
| |
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Starting at 3.99% with CCU's Car Buying Service and autopay OR as low as 4.74% APR* without
|
Starts at $7,500 (no max)
|
On Consumers Credit Union’s Website
| |
|
|
Starting at 4.99% (with autopay)
|
$2,500 to $500,000
|
Via MoneyLion’s Website
| |
|
|
Starting at 4.49% (with autopay)
|
$5,000 to $500,000
| ||
|
|
Starting at 6.24% (with autopay)
|
$5,000 to $100,000
|
Via MoneyLion’s Website
| |
|
|
Starting at 5.34% (with autopay)
|
$4,000 to $1 million
| ||
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Starting at 3.89%¹
|
$250 to $500,000
|
On Navy FCU's Website
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Best Auto Loan Rates: A Closer Look
PenFed Credit Union
APR range
Starting at 3.39%
Loan amounts
$500 to $150,000
Minimum Credit Score
PenFed does not disclose this information
Starting at 3.39%
$500 to $150,000
PenFed does not disclose this information
PenFed offers terms from 36 to 84 months and auto loans from $500 to $150,000, which could make them a good option if you need to finance a smaller amount. Its auto loans are available for new or used vehicles as well as auto refinancing. It also offers them through the company’s car-buying service, which can give you a discount on your rate.
The minimum amount you can borrow with a PenFed auto loan varies depending on your term length. For example, with a 36-month term you can borrow as little as $500; with a 48-month term, $7500; with a 60-month term, $10,000; with a 72-month term, $15,000; and with an 84-month term, $20,000.
Not only can you apply for the full amount needed, but PenFed also allows you to finance up to 110% of the amount needed. You can also apply for a PenFed loan completely online. Keep in mind that while you don’t have to be a PenFed member to apply for an auto loan, you must join the credit union if you are approved and want to accept the loan.
- Low minimum loan amount for some terms
- Using PenFed’s car-buying service gives you a discounted rate
- 100% online application process
- Requires membership to close your loan
- Does not disclose minimum credit score needed to qualify
- Charges a late payment fee
- Availability: PenFed offers auto loans in all 50 states.
- Turnaround time: PenFed offers funding in one day or less after you close on the loan.
- Credit requirements: PenFed does not disclose the minimum credit score needed to qualify for its auto loans.
Consumers Credit Union
APR range
Starting at 3.99%
with CCU’s Car Buying Service and autopay OR as low as 4.74% APR* without
Loan amounts
Starts at $7,500 (no max)
Minimum Credit Score
620
Starting at 3.99%
with CCU’s Car Buying Service and autopay OR as low as 4.74% APR* without
Starts at $7,500 (no max)
620
Consumers Credit Union offers terms from zero to 84 months to help borrowers who need to finance a short term auto purchase. Consumers’ loan amounts start at $7,500 with no maximum cap—you can borrow up to any amount you qualify for.
If you qualify for a Consumers Credit Union auto loan, you can finance up to 100% of your purchase. You can also apply for a loan and sign documents online, over the phone or by visiting a local branch.
Consumers auto loans are available for new or used vehicles, RVs, motorcycles and boats.
- Same-day funding offered
- Can borrow higher loan amounts
- Offers autopay discount
- Offers prequalification with a soft credit check
- Requires credit union membership
- Charges a late payment fee
- No rate discounts if using car-buying service
- Availability: Consumers Credit Union offers auto loans in all 50 states.
- Turnaround time: Consumers offers same-day funding and can fund your loan as soon as the same day you close.
- Credit requirements: Consumers Credit Union requires a minimum credit score of 620.
Digital Federal Credit Union (DCU)
APR range
Starting at 4.99%
with autopay
Loan amounts
$2,500 to $500,000
Minimum Credit Score
DCU does not disclose this information
Starting at 4.99%
with autopay
$2,500 to $500,000
DCU does not disclose this information
DCU is a Massachusetts-based nonprofit organization that offers a variety of banking and lending products, including auto loans. Loans for new and used vehicles range from $2,500 to $500,000, which could make DCU a good option if you’re looking to borrow a large amount. Repayment terms range from 36 to 84 months.
Auto loans from DCU can be used for new or used cars, refinancing, antique vehicles, motorcycles, recreational vehicles and mobility modifications for vehicles. Borrowers can also take advantage of a few rate discounts, including a 0.50% discount for members with plus or relationship benefits and an additional 0.25% discount for energy-efficient vehicles.
Keep in mind that while you don’t have to be a DCU member to apply for an auto loan, you must join the credit union if you are approved and want to accept the loan.
- Offers loyalty, autopay and energy efficiency rate discounts
- No payments required for the first 60 days of the loan
- Customer service available seven days a week
- Must join the credit union to finalize the loan
- Funding can take longer compared to other lenders
- Charges late fees
- Availability: DCU auto loans are available in all 50 states. Keep in mind, though, that you must meet membership eligibility requirements to finalize a loan.
- Turnaround time: After a DCU loan is finalized, you can expect the check to be delivered via FedEx in two to three business days.
- Credit Requirements: DCU doesn’t disclose its minimum credit score requirements.
USAA
APR range
Starting at 4.49%
with autopay
Loan amounts
$5,000 to $500,000
Minimum Credit Score
USAA does not disclose this information
Starting at 4.49%
with autopay
$5,000 to $500,000
USAA does not disclose this information
Founded in 1922 and headquartered in San Antonio, USAA began as a car insurance company but has since expanded and offers a wide variety of banking, investment and lending services. USAA auto loans are available from $5,000 to $500,000 with repayment terms from 12 to 84 months. If you’re approved, you may have the funds within 24 hours.
An auto loan from USAA can be used to purchase a new or used vehicle, refinance an existing loan or pay for a vehicle equipped for someone with a disability. Most customers will receive an approval decision within just five minutes of applying online.
Note that while you don’t have to be a USAA member to apply for an auto loan, you must join the credit union if you are approved and want to accept the loan. U.S. military members and veterans as well as their spouses and children are eligible for USAA membership.
- 0.25% autopay discount
- Borrowers with poor or fair credit might still qualify
- Fast approval and funding times
- Must join the credit union to finalize the loan
- Poor Trustpilot reviews
- Charges late fees
- Availability: USAA auto loans are available in all 50 states as well as Washington, D.C. However, you must join the credit union to finalize an auto loan.
- Turnaround time: Most USAA borrowers get an approval decision within five minutes of applying online. If you’re approved, you may receive the funds within 24 hours.
- Credit requirements: USAA does not disclose its minimum credit score requirement.
LightStream
APR range
Starting at 6.24%
with autopay
Loan amounts
$5,000 to $100,000
Minimum Credit Score
660
Starting at 6.24%
with autopay
$5,000 to $100,000
660
LightStream offers terms from 24 to 84 months and loan amounts from $5,000 to $100,000 , which could make LightStream a good option if you’re looking to borrow a large amount. Its auto loans are available for new or used vehicles, auto refinancing, classic cars, lease buyouts, motorcycles and private-party auto purchases.
LightStream doesn’t require a down payment as many auto lenders do—you can apply for the full amount needed. You can also apply for a LightStream loan online and get funds deposited directly into your account.
LightStream does not impose any vehicle restrictions on the borrower, either. No matter the year, make, model or mileage, you could still qualify.
- Same-day funding offered
- Offers autopay discount
- No late payment fees or prepayment penalty
- No down payment required
- No prequalification process
- Must have good to excellent credit to qualify
- Poor TrustPilot customer reviews
- Availability: LightStream offers auto loans in all 50 states.
- Turnaround time: LightStream offers same day funding and can fund your loan as soon as the day you apply.
- Credit requirements: LightStream requires a minimum credit score of 660.
Alliant Credit Union
APR range
Starting at 5.34%
with autopay
Loan amounts
$4,000 to $1 million
Minimum Credit Score
640
Starting at 5.34%
with autopay
$4,000 to $1 million
640
Alliant Credit Union is one of the largest credit unions in the U.S. It offers a wide range of banking, lending, investing and insurance products—including auto loans. With an Alliant auto loan, you can borrow between $4,000 to $1 million with repayment terms from 12 to 84 months.
Auto loans from Alliant can be taken out for new or used vehicles as well as for refinancing. Alliant also provides a car-buying service to help borrowers find a vehicle through a network of dealerships. Using this service will discount your interest rate by 0.50%, too. Borrowers also have access to a vehicle service program that could save them an average of 25% on car repairs, according to Alliant.
Keep in mind that while you don’t have to be an Alliant member to apply for an auto loan, you must join the credit union if you are approved and want to accept the loan.
- Loan amounts up to $1 million
- Same-day preapproval decisions
- 0.50% rate discount if you autopay and use Alliant’s car-buying service
- Must join the credit union to finalize the loan
- Must pay a fee of $18 or $22 (for FedEx Overnight Shipping or FedEx First Overnight Shipping, respectively) to get funds faster
- No physical branch locations
- Availability: Alliant auto loans are available in all 50 states as well as Washington, D.C.
- Turnaround time: Alliant offers same-day preapproval decisions in most cases. If you’re approved, Alliant will send the funds via FedEx two-business-day shipping. You can also ask to have the funds delivered faster—but you’ll have to pay either an $18 fee for FedEx Overnight Shipping or $22 for FedEx First Overnight Shipping.
- Credit Requirements: You’ll need a credit score of at least 640 to be eligible for an Alliant auto loan.
Navy Federal Credit Union (NFCU)
APR range
Starting at 3.89%¹
Loan amounts
$250 to $500,000
Minimum Credit Score
NFCU does not disclose this information
Starting at 3.89%¹
$250 to $500,000
NFCU does not disclose this information
Founded in 1933 by a group of U.S. Navy Department employees, Navy Federal has grown to include service members from all branches of the U.S. military and their family members. With a Navy Federal auto loan, you can borrow from $250 to $500,000. Repayment terms for new car loans range from 12 to 96 months while used car loan terms range from 12 to 72 months.
In addition to offering loans for new and used vehicles as well as a refinancing option, the credit union also maintains a car-buying center. This provides guidance and resources to borrowers through the entire process of purchasing a car, such as access to car history reports and insurance discounts.
Keep in mind that while you can apply for an auto loan without joining the credit union, you’ll have to become a Navy Federal member if you are approved and want to accept the loan. To be eligible for membership, you—or one of your family members—must have ties to the U.S. military, Department of Defense or National Guard.
- Loans amounts up to $500,000²
- Provides access to car-buying center
- Military discounts available*
- Must join the credit union to finalize the loan
- Charges late fees
- Availability: Auto loans from Navy Federal are available in all 50 states and Washington, D.C.
- Turnaround time: While the credit union tries to provide approval decisions within just minutes of applying online, it doesn’t publicly disclose a specific funding time. Keep in mind that if you’re approved for a Navy Federal auto loan, the check will be either sent to your address or made available for pick up at a local branch, which could take longer compared to funding from other online lenders.
- Credit Requirements: Navy Federal does not disclose this information.
*Disclosures
*Direct deposit required. This military special may expire at any time. Applicants must contact Navy Federal by phone or visit a branch to receive the discount. Active Duty rate discounts (which are also available for retired military members) can be applied, subject to certain restrictions.
¹Advertised “as low as” annual percentage rates (APR) assume excellent borrower credit history. Your actual APR may differ and will be based upon several factors, including credit history, model year, term, and loan amount. Rates subject to change.
²Credit and collateral subject to approval
Most Popular is calculated from the number of times each affiliate product was selected by Forbes Advisor users over a six month time period.
Tips for Comparing Auto Loan Rates
During your research, consider these factors when comparing auto loan rates:
- Credit score and eligibility requirements. Lenders check your credit score and history to determine your interest rate. Credit score requirements can vary between lenders, although some require a minimum score as low as 620.
- Loan amount. Higher loan amounts typically come with higher interest rates, and smaller amounts bring lower rates. Your monthly payment also depends on your repayment term.
- Repayment terms. Longer terms offer lower monthly payments but more interest overall while short terms have higher payments but less interest.
- Determine your down payment. Most lenders don’t have a minimum down payment requirement for a car purchase. However, some lenders recommend prospective buyers put down 20%. Generally, it’s best to put down the largest down payment possible to lower your overall loan costs.
- Additional expenses. When evaluating a lender, look for any extra fees that you may need to pay. These can include preparation fees, origination fees, document fees, delivery charges and more. Additional fees can increase the price of your vehicle and interest rate, so factor them into your research when evaluating lenders.
- Vehicle age. Most lenders typically charge a higher interest rate on used vehicles and lower rates for newer vehicles. Older vehicles generally pose more risk due to their depreciated value, prompting lenders to charge more interest.
What Is a Good Interest Rate for a Car Loan?
Interest rates vary depending on your credit score. The best rates are typically reserved for highly qualified applicants; applicants with damaged credit receive higher rates. A good interest rate for a car loan, though, is one that allows you to finance a car with manageable monthly payments for your budget.
Auto Loan Rates by Credit Score
Because your credit score significantly impacts your interest rate, it should be factored into your loan decision. Here are the average auto loan rates based on user credit score:
| Score Range | Average Auto Rate |
|---|---|
|
781 to 850
|
5.18%
|
|
661 to 780
|
6.40%
|
|
601 to 660
|
8.86%
|
|
501 to 600
|
11.53%
|
|
300 to 500
|
14.08%
|
How To Get the Best Auto Loan Rate
The best way to get a low interest rate on an auto loan is by doing your research and preparing ahead of time to set yourself up for success. Here are some general steps to follow:
- Improve your credit score. Your credit score is one of the most important factors that impacts your interest rate. The higher your credit score, the lower your rate. To qualify for a lower interest rate, it’s essential to improve your credit, if necessary. Paying down existing debt may boost your credit quickly.
- Shop around for a lender. Not all lenders are the same. Get quotes from different lenders at the dealership, your local financial institution and online lenders to find the best rates.
- Increase your down payment. Dealers require applicants to pay a certain amount toward a down payment. If you pay a larger down payment than your lender requires, it shows you have more skin in the game and pose less risk to the lender. This can result in the lender offering you a lower interest rate.
- Shorten your repayment term. Risk is key for lenders, and shorter loan terms means reduced risk. Financing over five years compared to six years, or four versus five, will usually get you a better rate, which means you’ll pay less over the life of the loan. But doing so will increase your monthly payment.
- Add a co-signer. If your credit is too low to qualify for a car loan, you might be able to improve your rate by adding a co-signer. When you use a cosigner, you are effectively piggybacking on their credit score to help you get a lower rate and/or loan approval. Your co-signer becomes responsible for repaying your loan if you fail to do so.
Pros and Cons of Auto Loans
Before you seek out an auto loan, consider the advantages and disadvantages of taking out an auto loan before making a purchase.
Pros
- Manageable payment schedules. Auto loans offer monthly installment loans that are typically more manageable and affordable than other loan types.
- Lower interest rates. Auto loan rates typically range from 3% to 20%, which is lower than other loan types, such as personal loans, which can reach up to 36%.
- Flexible qualification requirements. Auto loan lenders have flexible qualification requirements that allow borrowers with lower credit to qualify.
Cons
- Value depreciation. Your vehicle loses 9% to 11% of its original value after purchase, and you can easily end up owing more than your car is worth over time.
- Longer loan terms. Borrowers with an above-average credit score can expect an average loan term of 68.6 months, which can bind you to your loan for a while.
- High fees. Dealerships may charge title and registration fees, advertising fees, paint protection fees or credit insurance fees, which protect you if death or injury occurs.
Where To Get an Auto Loan
Auto loans are available via several sources. Some lenders may better suit your financial situation, so carefully consider each option:
- Dealer-arranged financing. Dealers will often arrange vehicle financing for you by forwarding your information to prospective auto lenders such as a partner bank or credit union.
- Direct dealer financing. Some dealerships allow direct payments if you have no credit or poor credit history. However, these deals often bring higher interest rates and longer terms.
- Banks or credit unions. These establishments can be a cheap option to eliminate any additional dealership charges since you deal directly with the lender.
What To Know Before You Apply for a Car Loan
Each lender will provide you with a potential interest rate based on your credit profile and qualifications. You may also need to pay lender fees. As such, it’s crucial to shop around and consider multiple lenders to find the best rate.
Your credit score directly impacts the rates you receive from lenders. For instance, applicants with higher credit scores typically land lower interest rates. The length of your loan term also determines your monthly payment amount. Longer terms stretch your debt out, causing lower monthly payments but more interest over time. Short terms require you to pay more monthly, allowing you to repay the loan faster; however, you pay less interest overall.
You can evaluate multiple loan options using online consumer marketplaces or loan comparison sites. You can also pre-qualify directly with lenders online to view your rate and terms before applying. To pre-qualify, lenders typically perform a soft credit check, which does not affect your credit score.
How To Apply for a Car Loan
Follow these general steps to apply for an auto loan:
- Determine your budget. Before applying for an auto loan, it’s essential to know how much you can afford to pay. Use an auto loan payment calculator to understand how much your estimated monthly payment would be depending on your loan amount.
- Check your credit. To get the best rates, you will need an excellent credit score. But many lenders approve loans for people with less-than-perfect credit histories. Before applying, check your credit score so you know where you fall.
- Shop around for the best loan. Prequalification and preapproval can help you understand what loan terms you may be eligible for. This information allows you to compare offers and negotiate. Taking the time to compare loan options and offers from several lenders can help you secure the best terms for your situation.
- Get your documents in order. Lender requirements vary, but most will ask you for paycheck stubs, proof of residence and proof of a valid driver’s license.
- Submit your application. Once you have chosen your preferred lender, whether a direct or dealership lender, submit your formal application online or in person.
Methodology
We reviewed 16 popular auto loan lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan cost: 30%
- Eligibility and accessibility: 25%
- Loan details: 20%
- Customer experience: 15%
- Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges, applicable fees and available discounts. We also looked at minimum credit score requirements, maximum accepted mileages, whether each lender accepts co-signers or co-borrowers and the geographic availability of the lender.
Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online application options, mobile apps and turnaround time.
Where appropriate, we awarded partial points depending on how well a lender met each criterion. Note that these rankings only comprise lenders that offer direct lending to consumers; companies that partner with multiple lenders or offer a lending marketplace were not included.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
Frequently Asked Questions (FAQs)
Can I negotiate my rate on an auto loan?
While car loans usually have fixed interest rates and loan terms, they can sometimes be negotiated, depending on your lender and the terms. Some things you can do to offset your rate include:
- Asking for a shorter term. The payments will be higher, but your interest rate will likely be lower and you’ll pay less in interest over the life of the loan.
- Declining the “no money down” offer from a dealership. By putting some money down, your loan amount will be smaller and could result in a lower interest rate.
What credit score do I need to buy a car?
Minimum credit score requirements vary by lender; there is no industry standard. However, we recommend a score of at least 670 to get a good interest rate. If you want to secure the lowest rates possible, aim for a score of at least 720.
How can I get a 0% APR on a car loan?
Zero percent financing deals are generally reserved for highly qualified applicants. Plus, they generally restrict the borrower to a shorter term, which means higher monthly payments. You’ll have to decide which is more important: a lower monthly payment or a lower overall loan cost.
When is the best time to buy a car?
The best time to buy a car varies. The new year in the auto industry kicks off in October, which means dealers need to get the old models off the lots, so buyers may find incentives and discounts then. However, as dealers wrap up month-end, quarterly-end and year-end sales objectives in December, buyers may find pricing, financing and cash-back incentives at the end of the calendar year.
How do you get a car loan with bad credit?
Several online lenders, banks and dealerships offer financing options for borrowers with bad credit. Before you apply, check your credit score and debt-to-income (DTI) ratio and determine your down payment amount. If you need help qualifying, consider applying with a co-signer, such as a trusted friend or family member, who becomes responsible for repaying the debt if you default.
How often are you required to make payments on an auto loan?
Auto loans typically require monthly payments over three to eight years, depending on your specific loan. The average auto loan term is 68.6 months, and the average monthly payment is over $700, according to recent data from Credit.com. However, you can make larger payments or pay multiple times per month to pay off your loan faster. If you plan on paying your loan off early, be sure to confirm if your lender charges prepayment penalty fees.