- If you are purchasing a new or used car from a dealership, Navy Federal, PenFed Credit Union and Consumers Credit Union will likely have the best rates.
- myAutoloan and Autopay often offer the best rates if you want to refinance your current auto loan or purchase a leased car.
- The best way to get the lowest auto loan rates is to research averages for your profile, raise your credit score and compare plenty of offers.
In this article, we’ll go over who has the best auto loan rates for both purchasing and refinancing. Click the following links to find the lowest rates for new cars, used vehicles, and auto loan refinancing.
Who Has the Best Auto Loan Rates?
The best auto loan rates overall are offered by Navy Federal Credit Union at a starting annual percentage rate (APR) of 4.09%. However, only military-affiliated borrowers have eligibility for these rates. If you aren’t in this category, Autopay, PenFed Credit Union, myAutoloan, Auto Credit Express, Bank of America and Consumers Credit Union may have the lowest rates on the market.
We recommend that you compare offers from all of our top picks for different loan options to find the best rates for your situation. Click each company name below to start getting offers.
| Best Auto Loan Rate Lender | Lowest Rate Offered | Best Auto Loan Rates For |
|---|---|---|
| Navy Federal Credit Union | 4.09% | Best Auto Loan Rates For Military |
| Autopay | 4.67% | Best Auto Refinance Rates |
| PenFed Credit Union | 4.74% | Best New Car Loan Rates |
| myAutoloan | 4.84% | Best Lease Buyout Loan Rates |
| Auto Credit Express | Varies | Best Bad Credit Auto Loan Rates |
| Bank of America | 5.59% | Best Bank Auto Loan Rates |
| Consumers Credit Union | 5.99% | Best Used Car Loan Rates |
Click the links below to learn more about the best companies with the lowest auto loan rates:
Best New Car Loan Rates
The best new car loan rates start at 4.09% for military-affiliated borrowers and 4.79% for those that are not. Below, you can compare the companies with the best new vehicle purchase loan rates currently.
| Best New Car Loan Rate Lender | Lowest New Car Loan APR Offered | Minimum Credit Score Requirement | Loan Term | Minimum Loan Amount |
|---|---|---|---|---|
| 1. Navy Federal Credit Union | 4.09% | N/A | Up to 96 months | $30,000 minimum for terms of 85 to 96 months |
| 2. PenFed Credit Union | 4.74% | 650 | 36 to 84 months | $15,000 minimum for 61 to 72-month term, $20,000 minimum for 73 to 84-month term |
| 3. Bank of America | 5.59% | N/A | 48 to 72 months | $7,500 minimum ($8,000 in Minnesota) |
| 4. Consumers Credit Union | 5.99% | 620 | Up to 84 months | No maximum or minimum listed |
| 5. Digital Federal Credit Union | 5.99% | 600 | Up to 84 months | No maximum or minimum listed |
Best Used Car Loan Rates
If you are purchasing a used car and are military-affiliated, the best rates start at 4.99% from Navy Federal. However, if you aren’t in this category, Consumers Credit Union, Digital Federal Credit Union, and PenFed Credit Union offer the lowest used vehicle loan rates.
| Best Used Car Loan Rate Lender | Lowest Used Car Loan APR Offered | Minimum Credit Score Requirement | Loan Term | Minimum Loan Amount |
|---|---|---|---|---|
| 1. Navy Federal Credit Union | 4.99% | N/A | Up to 96 months | $30,000 minimum for terms of 85 to 96 months |
| 2. Consumers Credit Union | 5.99% | 620 | Up to 84 months | No maximum or minimum listed |
| 3. Digital Federal Credit Union | 5.99% | 600 | Up to 84 months | No maximum or minimum listed |
| 4. Bank of America | 5.99% | 600 | 48 to 72 months | $7,500 minimum ($8,000 in Minnesota) |
| 5. PenFed Credit Union | 6.49% | 650 | 36 to 84 months | $15,000 minimum for 61 to 72-month term, $20,000 minimum for 73 to 84-month term |
Best Auto Refinance Rates
Autopay, RateGenius and myAutoloan offer the lowest auto refinance rates currently available. Below you will find the top five companies with the best auto refinancing rates.
| Best Used Car Loan Rate Lender | Lowest Auto Refinance APR Offered | Minimum Credit Score Requirement | Loan Term | Minimum Loan Amount |
|---|---|---|---|---|
| 1. Autopay | 4.67% | 560 | 24 to 96 months | $2,500 to $100,000 |
| 2. RateGenius | 4.67% | 500 | 36 to 72 months | $12,000 to $100,000 |
| 3. myAutoloan | 4.84%* | 575 | 12 to 84 months | $5,000 minimum |
| 4. Gravity Lending | 4.99% | 640 | 36 to 84 months | Varies |
| 5. Auto Approve | 5.24% | 600 | 12 to 84 months | $5,000 to $85,000 |
How To Get The Best Auto Loan Rates
When searching for the best auto loan rates, there are a few key things that you need to keep in mind as you compare providers.
One of the easiest ways to gauge if you’re getting a good deal is to know the average auto loan interest rates for your credit score. Below, we’ve broken down the most recent average rates of 2024 according to Experian.
| Credit Score Range | Average New Car Loan Interest Rate | Average Used Car Loan Interest Rate |
|---|---|---|
| 781 to 850 | 5.25% | 7.13% |
| 661 to 780 | 6.87% | 9.36% |
| 601 to 660 | 9.83% | 13.92% |
| 501 to 600 | 13.18% | 18.86% |
| 300 to 500 | 15.77% | 21.55% |
The location, type of vehicle you’re financing, down payment and term length can all also affect the rates you receive. Some providers may also offer rate discounts if you enroll in automatic payments.
To find the most competitive rates available, compare auto loan offers from various lenders and financial institutions. Technological advancements have made comparing rates online a key part of this process.
There are many online lending marketplaces that allow you to compare multiple providers at once, helping you find the best deal. On top of this, using an auto loan calculator lets you estimate your monthly payments and compare the total cost of each financing option.
If your credit score is less than desirable — but you need a car soon — getting a co-signer on your loan could make it easier to find low rates. If a family member or friend has excellent credit, you could gain access to some of the best auto loan rates.
Read over your loan terms carefully to make sure you can cover monthly costs. If you make late payments or default on the loan, it will affect both your and your co-signer’s credit scores.
Your credit score is the primary factor that determines the best auto loan rates you’ll find from a lender. Even if you’re only able to improve your score by 30 to 40 points, the difference could be a huge help in getting lower interest rates and loan payments.
Say you were planning to finance a used car and your credit score improved from 650 to 680. Your rates could improve from 8% to 12%, allowing you to save thousands of dollars on a used vehicle. There are many ways to improve your credit score, and below are seven steps you can take to get lower monthly payments.
Best Auto Finance Rates: The Bottom Line
Here are the top six lenders that may offer some of the lowest auto loan rates:
- Best Auto Loan Rates for Military: Navy Federal
- Best Auto Refinance Rates: Autopay
- Best New Car Purchase Loan Rates: PenFed Credit Union
- Best Lease Buyout Loan Rates: myAutoloan
- Best Bad Credit Auto Loan Rates: Auto Credit Express
- Best Used Car Purchase Loan Rates: Consumers Credit Union
Best Car Loan Rates: FAQ
Below are some frequently asked questions about the best auto loan rates, lenders and financing:
According to our research, Navy Federal, Autopay, PenFed Credit Union, myAutoloan, Auto Credit Express, Bank of America and Consumers Credit Union have the best auto loan rates for vehicle purchases and refinancing. However, the best choice for you depends on your unique financial situation.
The lowest auto loan rates offered for non-military affiliated borrowers currently are 4.67% for auto refinance loans from Autopay. However, these rates are only available for those with excellent credit and a 36-month loan term. If you have poor credit or a different term loan, you can expect a higher interest rate.
Bank of America offers the lowest bank auto loan rates that we’ve seen in our industry study at 5.69% for new car purchase loans. However, the bank that can offer you the lowest interest rate for a car will vary based on factors such as your location, your credit history, down payment amount and type of financing.
Consumers Credit Union and PenFed Credit Union are known to have low auto loan rates, especially for people with good credit. Compare APRs from each provider to find your most competitive auto financing rates.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best auto loan companies. We collected data on dozens of loan providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.
Here are the factors our ratings take into account:
- Industry Standing (30% of total score): Our research team considers ratings from industry experts and each lender’s years in business when giving this score.
- Rates and Discounts (25% of total score): Auto loan providers with low APRs, good discount opportunities and high loan amounts score highest in this category.
- Availability (20% of total score): Companies that cover a variety of circumstances are more likely to meet consumer needs.
- Loan Details (15% of total score): We look at auto lenders’ financing amount limitations, available loan terms and the types of auto loans they offer.
- Customer Service (10% of total score): This score is based on customer satisfaction ratings and transparency. We also consider the responsiveness, friendliness and helpfulness of each loan company’s customer service team based on our shopper analysis.
Our credentials:
- 295+ hours researched
- 20+ companies reviewed
- 2,000+ consumers surveyed
*Data accurate at time of publication.
