NEW
Tenet: Best for specialized EV loans
APR from
6.39-
15.75%
Loan term
3-7 yrs
Loan amount
$15k- $95K
Min credit score
Not disclosed
Read our review
Read review on Bankrate
Best auto loan rates in December 2024
Updated Nov 26, 2024
What to know first: To drive away with the best deal, you need to arrive at the dealership lot with a plan for financing your car. Auto loans are a type of secured financing that help borrowers pay for a new or used car. They are available from dealerships and lenders. Because there are many lenders on the market, shopping around for a loan — just like you would your car — will help you find the best rates available.
Bankrate’s best auto loans are selected based on a lender’s available rates and terms, customer experience and transparency. Explore all the fine details to determine which vehicle financing option is right for you.
|
Filter results
NEW
myAutoLoan: Best for fair credit borrowers
APR from
6.79%
Loan term
2-7 yrs
Loan amount
Starting at $8,000
Min credit score
600
See rates
Apply on partner site
NEW
Carputty: Bankrate 2024 award winner for best auto loan for used car purchase
APR from
4.53-
12.53%
Loan term
4-6 yrs
Loan amount
$25k- $250K
Min credit score
680
See rates
Apply on partner site
REFINANCE
Gravity Lending: Best for no fees
APR from
4.99-
14.99%
Loan term
3-7 yrs
Loan amount
$15k- $150K
Min credit score
640
See rates
Apply on partner site
USED
myAutoLoan: Best for fair credit borrowers
APR from
7.04%
Loan term
2-7 yrs
Loan amount
Starting at $8,000
Min credit score
600
See rates
Apply on partner site
REFINANCE
Autopay: Bankrate award winner for best auto loan online lender
APR from
4.99%
Loan term
1-8 yrs
Loan amount
$5k- $150K
Min credit score
580
See rates
Apply on partner site
REFINANCE
Auto Approve: Best for loan comparison
APR from
5.29-
24.99%
Loan term
1-7 yrs
Loan amount
$10k- $150K
Min credit score
620
See rates
Apply on partner site
REFINANCE
myAutoLoan: Best for comparing rates with good credit
APR from
4.99%
Loan term
2-7 yrs
Loan amount
$5k- $120K
Min credit score
600
See rates
Apply on partner site
REFINANCE
Caribou: Best for fair credit loan comparison
APR from
5.48-
28.55%
Loan term
2-7 yrs
Loan amount
$5k- $125K
Min credit score
640
See rates
Apply on partner site
NEW
Cars Direct: Best for poor credit borrowers
APR from
Not Specified
Loan term
2-6 yrs
Loan amount
$25k- $250K
Min credit score
700
See rates
Apply on partner site
REFINANCE
Carputty: Best for frequent car buyers
APR from
4.53-
12.53%
Loan term
4-6 yrs
Loan amount
$25k- $250K
Min credit score
680
See rates
Apply on partner site
REFINANCE
LightStream: Best for fast funding
APR from
7.49-
15.44%
* with AutoPayLoan term
2-7 yrs
Loan amount
$5k- $100K
Min credit score
Not disclosed
See rates
Apply on partner site
REFINANCE
RefiJet: Best for customer support
APR from
Not specified
Loan term
2-8 yrs
Loan amount
$5k- $150K
Min credit score
580
See rates
Apply on partner site
REFINANCE
iLending: Best for poor credit refinancing
APR from
5.94-
18.79%
Loan term
2-8 yrs
Loan amount
$5k- $150K
Min credit score
560
See rates
Apply on partner site
USED
Lightstream: Best overall auto loan
APR from
7.24-
15.19%
* with AutoPayLoan term
2-7 yrs
Loan amount
$8k- $100K
Min credit score
Not disclosed
See rates
Apply on partner site
NEW
LightStream: Best overall auto loan
APR from
7.24-
15.19%
* with AutoPayLoan term
2-7 yrs
Loan amount
$5k- $100K
Min credit score
Not disclosed
See rates
Apply on partner site
NEW
Autopay: Bankrate award winner for best auto loan online lender
APR from
4.99%
Loan term
1-8 yrs
Loan amount
$8k- $150K
Min credit score
580
See rates
Apply on partner site
USED
Carputty: Bankrate 2024 award winner for best auto loan for used car purchase
APR from
4.53-
12.53%
Loan term
4-6 yrs
Loan amount
$8k- $100K
Min credit score
680
See rates
Apply on partner site
Why choose Bankrate?
Backed by over 40 years of experience, our team at Bankrate strives to help you make the right decisions for any financial situation.
Your security comes first
Bankrate protects your data from end to end, so you stay safe whether you're browsing articles or prequalifying for a loan.
We partner with the best
Get connected with personalized lender options tailored to your needs, no matter where you are in your financial journey, whether you're browsing articles or prequalifying.
No outside influence
We uphold editorial integrity by providing the information that is best for our readers and their wallets, not ours. Our staff writers have a wide range of experience, education and certifications to give you unbiased information you need to make important borrowing decisions.
Compare auto loan rates in December 2024
Make use of this table to better understand the offerings of Bankrate’s top lenders. Depending on what type of loan you are considering and where your credit stands explore bad credit and refinance rates as well. Skim the details while keeping your credit score and funding needs top of mind,
Loan details presented here are current as of publication. Check the lenders’ websites for more current information. The auto loan lenders listed here are selected based on factors such as APR, loan amounts, fees, credit requirements and more.
| Lender | Current APR | Term | Loan Amount | Best for |
|---|---|---|---|---|
| Autopay | Starting at 4.99% | 12-96 months | $8,000-$120,000 | Bankrate award winner for best auto loan online lender |
| myAutoLoan | Starting at 6.79% | 24-84 months | Starting at $8,000 | Shopping for multiple loan offers |
| LightStream | 7.24%-15.19%* with AutoPay | 24-84 months | $5,000-$100,000 | Overall auto loan |
| Bank of America | Starting at 5.34% | 48-72 months | Starting at $7,500 | Big bank option |
| Capital One | Not specified | 24-84 months | Starting at $4,000 | Convenience |
| PenFed Credit Union | Starting at 4.44% | 36-84 months | Not specified | Bankrate 2024 Award winner for best auto loan from a bank |
| Carputty | Starting at 4.53% | 63 Months | $25,000-$250,000 | Bankrate 2024 Award winner for best auto loan for used car purchase |
| Consumers Credit Union | Starting at 5.99% | 36-84 months | Not specified | Bankrate 2024 Award winner for best auto loan for new car purchase |
| Tenet | 6.39%-15.75% | 36-84 months | $15,000-$95,000 | Bankrate 2024 Award winner for best auto loan for EV loans |
| Lender | Current APR | Term | Loan Amount |
|---|---|---|---|
| Capital One | Not specified | 24-84 months | Starting at $4,000 |
| Autopay | Starting at 4.99% | 12-96 months | $8,000-$120,000 |
| Carvana | 7.90%-27.90% | 12-72 months | Starting at $1,000 |
| iLending | 5.94%-18.79% | 12-96 months | $5,000-$150,000 |
For more information on bad credit auto loan rates, check out our page on bad credit auto loans.
| Lender | Current APR | Term | Loan Amount |
|---|---|---|---|
| LightStream | 7.49%-15.44%* with AutoPay | 24-84 months | $5,000-$100,000 |
| Autopay | Starting at 4.99% | 12-96 months | $8,000-$120,000 |
| Caribou | 5.48%-28.55% | Not specified | $10,000-$125,000 |
| Upstart | 7.27%-29.99% | 24-84 months | $3,000-$60,000 |
| RefiJet | 5.29%-21.99% | 24-96 months | $5,000-$150,000 |
| LendingClub | 4.99%-24.99% | 24-84 months | $4,000-$55,000 |
For more information on auto loan refinance rates, check out our page on auto loan refinancing.
A closer look at the best auto loan lenders in 2024
When comparing potential lenders look out for not only how potential rates will fit into your budget but also how the lending experience fits your needs.
Autopay: Bankrate award winner for best auto loan online lender
Autopay: Bankrate award winner for best auto loan online lender
4.2
Overview: Autopay is an auto loan marketplace which makes it a great option for a borrower who wants to explore many loan options all at once. Borrowers just have to submit one application and will then be presented with loans from a wide range of sources.
Fixed APR
4.99%Loan amount
$8k– $150k
Min credit score
580
myAutoLoan: Best for fair credit borrowers
myAutoLoan: Best for fair credit borrowers
3.7
Overview: myAutoLoan has no application fee and a convenient online application. It works with an expansive network of lenders to enable you to compare offers and find the right lender for your needs. It also offers loans for refinancing and lease buyouts.
Fixed APR
6.79%Loan amount
Starting at $8,000
Min credit score
600
LightStream: Best overall
LightStream: Best overall
4.2
Overview: LightStream offers unsecured personal loans to borrowers in all 50 states. Unlike traditional auto lenders that work with a network of dealerships, LightStream sends funds directly to the borrower. Although the minimum APR is competitive, the maximum is quite steep.
Fixed APR
7.24%–15.19%Loan amount
$5k– $100k
Min credit score
Not specified
Bank of America: Best big bank option
Bank of America: Best big bank option
3.7
Overview: Bank of America is the second largest financial institution in the country and is trusted by consumers for a range of banking services, including auto financing. The bank offers loans for new, used, refinance and lease buyouts. It also carries minimal fees and serves drivers in all 50 states.
Fixed APR
5.64%Loan amount
$7.5k
Min credit score
Not specified
PenFed Credit Union: Best for viewing potential rates
PenFed Credit Union: Best for viewing potential rates
4.4
Overview: Members of PenFed can view potential rates following prequalification without any damage to their credit score. This way, borrowers can compare different loan options at once and secure the right loan for their budget.
Fixed APR
4.44%Loan amount
150,000
Min credit score
Not specified
Carputty: Bankrate 2024 award winner for best auto loan for used car purchase
Carputty: Bankrate 2024 award winner for best auto loan for used car purchase
4.3
Overview: Carputty is a direct lender that allows borrowers to finance multiple vehicle purchases at once. It offers higher than usual loan amounts, called lines of credit, up to $250,000. Along with that borrowers can access funding as soon as the same day.
Fixed APR
4.53%–12.53%Loan amount
$25k– $250k
Min credit score
680
Consumers Credit Union: Online car buyers
Consumers Credit Union: Online car buyers
4.5
Overview: Similar to PenFed, Consumers Credit Union offers an online car-buying service to borrowers. Powered by TrueCar, shoppers can secure financing and make their vehicle purchase online. This option also offers a small discount.
Fixed APR
5.99%Loan amount
Not specified
Min credit score
Not specified
Tenet: Best for specialized EV loans
Tenet: Best for specialized EV loans
Overview: Tenet is a lender that specifically finances electric vehicles and plug-in hybrids. It has an online marketplace to view your options and apply quickly. Plus, it also has options to finance at-home charging systems when you buy your vehicle.
Fixed APR
6.39%–15.75%Loan amount
$15k– $95k
Min credit score
Not specified
What are car loans and how do they work?
Auto loans let you borrow the money you need to purchase a car. Since car loans are typically "secured,” they require you to use the automobile you are buying as collateral for the loan.
You are typically required to pay a fixed interest rate and monthly payment for 24 to 84 months, at which point your car will be paid off. Many dealerships offer financing, but you can also find auto loans at national banks, local credit unions and online lenders.
When shopping for an auto loan, compare APRs across multiple lenders to make sure you are getting a competitive rate. Look for lenders that keep fees to a minimum and offer repayment terms that fit your needs.
Types of auto loans
Car loan options go beyond just new and used. Each auto loan type has specific uses that cater to certain types of borrowers, and knowing what type you need can make the loan shopping process easier.
New car loan
If you are looking to purchase a new car, you should seek out a new car loan. Dealerships offer new car financing on the lot, but you can also get them from banks, credit unions and online lenders. Shop around for your best interest rate and terms.
Used car loan
Buying a used car from a dealership will require a used car loan. You can get them at the same places you would get a new car loan. Lenders often limit cars’ age and mileage.
Auto refinance
If you originally took out a loan at a dealership, or just didn't get a good rate, you may want to refinance your car and get a better interest rate. Or you can rework your terms to get a lower monthly payment. This process simply replaces your current auto with a new one. These loans aren't available through dealerships.
Cash-out auto refinance
To get a little extra cash with your refinance, you can take out a cash-out refinance loan. Along with the balance you are refinancing, you can borrow against the equity you have in your car.
Private party
When you are buying a used car from an individual seller and do not have the cash on hand, you will need a private party auto loan. These are less common, but available at some banks, credit unions and online lenders.
Lease buyout
Leasing a car can come with the option to buy the vehicle at the end. You can take out a lease buyout loan to finance that purchase. Lease buyout loans tend to be similar to used car loan rates.
Pros and cons of auto loans
An auto loan can be a great way to get behind the wheel. But cars are big purchases, and these loans can impact your finances for years. It’s important to weigh auto loans’ advantages and disadvantages before opting in.
Pros
-
Spreads out expenses: Securing a loan cuts down the amount of money you have to spend up front for your vehicle, instead you will pay across the course of your agreed loan term.
-
Afford a better car: With more time to repay your lender, you may be able to afford a nicer vehicle than what you could by buying outright.
-
You own the car at the end: Unlike with leasing, the vehicle will be yours once the loan is fully paid off.
-
May improve your credit score: Payment history makes up 35 percent of your FICO score. If you have proven loan pay-off history, your score could improve.
Cons
-
Monthly payments can be expensive: Due to a number of factors, interest rates are high right now. The average new car payment is $734 per month, according to Experian data.
-
Risk of damaging your finances: If you struggle with keeping your finances in order, beware of how missed payments may affect your credit and your ability to drive your car.
-
Your vehicle’s value depreciates: Your vehicle will start to depreciate the moment you exit the dealership.
-
Stuck with the same car for longer: If you like to switch up your vehicle every couple of years, leasing may be a better option.
How to choose the best auto loan lender
Choosing the right lender can help you with financing a vehicle you can afford. We recommend you get quotes from at least three lenders beyond your car dealership before deciding which is right for you. Pay special attention to the following factors:
Approval requirements
Every lender has different requirements to receive approval. Lenders will consider aspects like your credit history, income and debt-to-income ratio. Your credit serves as the primary determinant of potential rates. Keep in mind that typically, the worse your credit score is, the less competitive your rates will be.
Annual percentage rate
The APR represents the amount of interest and fees that you will have to pay on the loan. Pay close attention to this number — a higher APR means more interest and thus a larger monthly cost. Also remember to shop the total loan amount, not just the monthly payment.
Loan terms
While a lower monthly payment may seem appealing, pay close attention to available terms, and consider how your loan’s length will impact your overall cost. A longer loan term will lower your monthly cost, but you will pay more interest. Conversely, a shorter loan term means a higher monthly cost but a lower cost over the life of the loan.
Current car loan interest rates
Car loan interest rates change frequently and impact how much you’re going to pay each month. So it’s important to track them when comparing auto loan rates. Bankrate surveys top banks across U.S. markets and crunches the numbers to find average interest rates for common loan terms. Use the below table, which updates weekly, to help you know the best time to buy a used or new car.
Average rates as of November 26, 2024
| 60-month new car | 7.57% | |
| 48-month new car | 7.46% | |
| 48-month used car | 8.26% | |
| 36-month used car | 8.05% |
Auto loan rates by credit score
As mentioned, lenders use credit score as the primary determinant of a potential borrower's ability to pay off a loan. So, the better your credit score is, the more competitive interest rates you will receive. Below are the average APRs for new and used vehicles in the second quarter of 2024, according to Experian.
| CREDIT SCORE | NEW CAR LOANS | USED CAR LOANS |
|---|---|---|
| 781 to 850 (super prime) | 5.25% | 7.31% |
| 661 to 780 (prime) | 6.87% | 9.36% |
| 601 to 660 (nonprime) | 9.83% | 13.92% |
| 501 to 600 (subprime) | 13.18% | 18.86% |
| 300 to 500 (deep subprime) | 15.77% | 21.55% |
What factors contribute to auto loan interest rates?
While it is true that the interest rate you will receive varies depending on the lender and is somewhat out of your control, there are still choices you can make to increase approval. Consider these aspects and how they will affect loan approval and rates:
- Your credit history: Lenders use credit scores to measure the risk that borrowers carry. Very simply, the lower your credit score is, the higher your interest rate will be.
- Vehicle down payment: Putting down a large down payment will not only bode well with lenders but will decrease the amount you are borrowing — saving you more money down the line.
- Loan term: Typically, a longer-term loan will equate to higher interest rates and more interest paid over the life of the loan. But a longer-term loan will decrease your monthly payment.
- Education and work history: Many lenders are expanding underwriting criteria outside of the sole measure of your credit score. This means you can still benefit from a competitive rate if you have a strong profession or educational background — with or without a perfect credit score.
- Vehicle age: An older vehicle can carry additional risk of issues for both you and your lender. So, you can expect an older car to carry higher rates.
How to calculate auto loan interest
It’s smart to determine your expected monthly payment prior to signing off on your next loan. Not only will it put you in control of your finances, but it can ensure that you don’t end up paying more interest than you should. Use our tool below to determine how different interest rates will impact your monthly payment.
What to know before applying for an auto loan
When looking for a car loan, it is best to shop around with a few lenders before making your decision. Each lender has its own method when reviewing your application for a loan and setting your interest rate and terms. Check your credit ahead of shopping to ensure you qualify for lenders you may have your sights set on.
Generally, your credit score will have the biggest effect on the rates you're offered. The higher your credit score, the lower APR you will receive. Having a higher credit score may also allow you to take out a larger loan or access a broader selection of repayment terms, but there are still ways to finance a car with bad credit. Choosing a longer repayment term will lower your monthly payments, although you will also pay more interest overall.
If you find a few lenders that you like, see if they offer prequalification — going through this process will let you see which rates you qualify for without affecting your credit score.
How to apply for an auto loan
To get the auto loan that’s right for your situation, follow these steps:
- Determine your auto loan budget: The first step is to understand what you can truly afford. Consider your current finances along with loan and vehicle upkeep costs to find this number.
- Check your credit report: The better your credit score is, the more competitive your rates will likely be. Use your credit score to guide which lenders make the most sense to apply to — based on lender requirements.
- Apply for auto loan preapproval: With auto loan preapproval you can lock in a rate before shopping for your car. This extended period allows you time to compare vehicle options and help with negotiating at the dealership.
- Shop for your car: Make use of online reviews found on sites like Kelley Blue Book or Edmunds to confirm the vehicle meets your needs along with any lender restrictions.
- Compare dealership offers: While dealership loan rates tend to be slightly higher than other options it is smart to compare, especially if you have a preapproved option to use as leverage.
- Finalize the auto loan: At this point, you’ll need documents like proof of insurance and a vehicle title to seal the deal.
- Start making payments: Keeping up with your monthly payments is vital in making sure the vehicle becomes yours and ensuring your credit comes out unscathed. Consider signing up for autopay so you never miss a payment.
How to manage a car loan
The key to managing your car loan is sticking to a budget and understanding how your agreed-upon payment timeline impacts it. Otherwise, you put yourself at risk of losing your vehicle and running into trouble. If you are on the brink of missing a payment, reach out to your lender as soon as possible to seek a solution.
You can make extra payments to pay off your loan earlier to save on interest. But consider how early payoff can impact your credit — it can drop your score by a few points. Not all lenders allow early loan payoff. Approach your auto loan pay-off with care to ensure it fits best with your financial situation.
FAQs about auto loans
How we choose our best auto loan lenders
Bankrate's trusted auto loans industry expertise
48
years in business
37
lenders reviewed
18
loan features weighed
666
data points collected
The Bankrate team assessed more than 35 auto lenders to find the best. Bankrate considered 18 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.