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.

Best Auto Loans offers

LightStream Personal Loans

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.

Pros and cons

myAutoloan com

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. 

Pros and cons

PenFed Auto Purchase and Refinance

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. 

Pros and cons


HSBC offers Personal, Premier, Car, Home Improvement, and Debt Consolidation loans with competitive rates and exclusive Premier benefits.

Pros and cons

Sainsbury’s Bank Loans

Sainsbury's Bank, a subsidiary of the esteemed UK supermarket, offers a diverse range of financial services, including loans, credit cards, insurance, and savings accounts, with a focus on customer convenience and competitive solutions. 

Pros and cons

Halifax Loans

Halifax's personal loans are tailored for various purposes, such as major purchases or consolidating debts, without the requirement of collateral. 

Pros and cons

Zopa Loans

Zopa Bank, renowned for its tech-savvy approach combined with financial acumen, is committed to offering simple, transparent, and customer-focused financial products.

Pros and cons

Oakbrook Loans

Oakbrook Loans, a dynamic and FCA-regulated institution in Nottingham, provides versatile loans for homes, debt, weddings, and cars.

Pros and cons

TSB Bank Loans

TSB Bank personal loans offer flexible borrowing from £300 to £50,000, competitive APRs, repayment holidays, and options for diverse financial needs.

Pros and cons

Novuna Personal Finance

Novuna offers a range of loans including car, home, debt consolidation, and leisure, all with flexible terms and competitive rates.

Pros and cons

How To Apply for an Auto Loan?

Follow these general steps to apply for an auto loan:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. Submit your application. Once you have chosen your preferred lender, whether a direct or dealership lender, submit your formal application online or in person


What is the most popular auto loan term?

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.

What is a good APR for 72 months?

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.

Key terms to know how car loans work

Understanding key terms related to car loans is crucial before applying for financing. Here's a breakdown of essential terms:

  • Annual Percentage Rate (APR): The yearly cost of borrowing money, expressed as a percentage. It includes lender fees and is based on factors like credit history.
  • Loan Term: The duration for repaying the loan, typically in 12-month increments (e.g., 24, 36, 48 months). Longer terms mean more interest paid over time.
  • Interest Rate: The cost of borrowing, excluding fees. Use APR for a more accurate comparison between lenders.
  • Principal Amount: The original borrowed sum, excluding interest.
  • Amortization: The loan repayment process allocating payments to principal and interest. Early payments go more to interest, shifting to principal later.
  • Down Payment: Upfront payment, reducing the loan amount.
  • Taxes and Fees: Additional costs like sales tax, documentation fees, and other charges included in the total car price.
  • Total Car Cost: The entire loan amount, covering principal, interest, down payment, or trade-in, paid over the loan term.
  • Car Financing: Paying for a car over time, involving various options like loans, leases, or refinancing.
  • Loan-to-Value Ratio (LTV): The car's value compared to the loan amount, indicating lender risk. Calculated as (Loan amount / Car value) x 100 = LTV. It influences loan rates and approval.

Being familiar with these terms equips you to apply for loans, compare offers, and make informed decisions.