We’ve compiled a list of seven lenders offering the best auto loan rates for new and used cars. The lenders were evaluated on factors including the minimum annual percentage rates (APRs) of their loans, eligibility requirements and customer reviews. The exact loan terms and pricing you receive will depend on your personal financial profile.
LightStream provides an attractive option for personal loans, especially if you have a strong credit history. With competitive interest rates and a lack of fees, it's a borrower-friendly choice.
myAutoloan.com, established in 2003, operates as a direct lending marketplace that serves as an intermediary, gathering loan offers from up to four lenders on behalf of loan applicants.
PenFed's car buying service enables applicants to find a car online, request member pricing from a dealer, apply for financing online, receive approval, and then visit the dealership.
Follow these general steps to apply for an auto loan:
The most common terms are 24 to 60 months, but 72- and 84-month terms are becoming more common. There is no perfect term, and it is instead specific to your budget and needs. A longer term means lower monthly payments, but a higher cost overall.
The average interest rate on a new car loan with a credit score of 650 is 7.25%, while the average interest rate on a used car loan is 9.81%. What is a good interest rate for a 72-month car loan? An interest rate below 4.07% for a new and 8.62% for a used car can be considered good for a 72-month car loan.
Understanding key terms related to car loans is crucial before applying for financing. Here's a breakdown of essential terms:
Being familiar with these terms equips you to apply for loans, compare offers, and make informed decisions.