PenFed Credit Union is the best overall auto loan lender thanks to its wide selection of loan types and competitive rates, according to our research. It offers rates for used cars as low as 6.49%, and another one of our picks, OpenRoad Lending, offers rates as low as 1.99%.We reviewed 21 auto loan lenders and collected the best new, used, and refinance auto loan rates, evaluating APRs, loan types, loan terms, vehicle and borrower requirements, and other factors. We also surveyed 1,016 auto loan borrowers, asking how they felt about lenders and the loan process. Compare Best Auto Loan Rates, Lenders, & Financing for May 2024 - Rates From 1.99% Compare Best Auto Loan Rates, Lenders, & Financing for May 2024 - Rates From 1.99% The Bottom Line Compare Best Auto Loan Lenders What Is an Auto Loan? How to Apply Auto Loan Calculator Pros and Cons FAQs Other Auto Loans Guide to Auto Loans Methodology Why You Should Trust Us Pros & Cons Pros Full suite of auto loan types available Allows private-party vehicle purchases Promotional offers if you use car-buying service Cons Must join credit union Doesn’t allow co-signers No rate discounts available Why We Chose It PenFed is our top pick overall for auto financing because it offers all of the loan types you’d ever hope to use, and offers competitive rates: loans for new or used cars, refinances, cash-out refinances, and even lease buyout loans. You can even use a used car loan to buy a car from a private seller, if you wish. PenFed will mail you a check if you’re approved for any of its loans. That can take a few days, but if you’re OK with using the TrueCar car-buying service, PenFed offers a pretty good relationship discount. Your loan could be funded the same day you’re approved, if you use this service. PenFed's customer service is available by phone or secure online message. PenFed has been in business since 1935, and has headquarters in McLean, Virginia. Read our full PenFed auto loans review. Terms and Borrower Qualifications Vehicle Qualifications Pros & Cons Pros Relatively low rates No payments for 45 days Low minimum credit score requirement Cons Very sparse on loan details Doesn’t disclose partner lenders Can’t apply with a co-signer, only a co-borrower Why We Chose It AUTOPAY is a loan aggregator and it's a bit light on the details; maybe intentional in order to get you to bite. If you have excellent borrower qualifications, AUTOPAY certainly has the potential to be one of your cheapest financing options, advertising some of the best car loan rates today compared to other lenders and aggregators. It's our top pick for bad credit because it works with borrowers with credit scores as low as 500; but it doesn’t specify the top end of the rate range you’d be likely to pay if you have poor credit, so you’ll need to be careful—especially since you can’t apply with a co-signer (only a co-borrower).But, if you do have good credit, you may enjoy some very good interest rates. AUTOPAY does offer a full suite of auto loan types: used cars, new cars, refinances, cash-out refinances, and even lease buyout loans. It works with a network of partner lenders rather than offering the loans itself, and that’s how it can offer so much flexibility. For that reason, it’s a good choice to add to your shopping list, although we would prefer if it offered more concrete details. AUTOPAY was founded in 2007, and is based in Denver, Colorado. You can get in touch with the company by phone or online message. Read more in our full AUTOPAY auto loans review. The best auto loan rates are often advertised through third-party companies that network with partner lenders, like AUTOPAY. Most don’t disclose their partners, however, so you can’t always see all of the companies you’re actually checking your rates with.You may need to sign up for automatic payments to get the best rates, as well. Terms and Borrower Qualifications Vehicle Qualifications Pros & Cons Pros Allows co-signers No age or mileage restrictions Offers a full suite of car loan options Cons Can only be used at a dealership Must join credit union to receive loan Lack of transparency about loan requirements Why We Chose It As our highest-rated credit union, Consumers Credit Union is a good choice for people who prefer to bank with these financial institutions. It’s also a good choice if you’re trying to buy an older car from a dealership because it’s one of the few lenders that doesn’t put any limits on your vehicle’s model year or mileage. Consumers also offers an optional mechanical repair insurance plan through ForeverCar, which might be especially important if you are driving an older car. Consumers doesn’t specify what sort of credit history you need to qualify for a loan (or any other qualifications, really), but it might be good to add this one to your shopping list if you have bad credit. The maximum rate you’ll pay for a refinance loan, for example, is about half of what some other lenders may charge.It also has a relatively low minimum loan amount. Customer support is available by phone, email, or live online chat. Consumers Credit Union was chartered in 1930, and has corporate headquarters in Round Lake Beach, Illinois. Terms and Borrower Qualifications Vehicle Qualifications Pros & Cons Pros Potential for very low rates Compare many refinance loan offers at once No limits on age or mileage of vehicle Cons Can generate a lot of spam Very low loan-to-value ratios Doesn’t offer many details about its loans Why We Chose It LendingTree is another company that can help you quickly identify the best financing rates from among its network of lenders. It suffers from the same problems as other lender networks, however—namely, that it doesn’t tell you which lenders it’s checking your rates with, nor what the types of loans you might qualify for look like. You can also expect a lot of companies reaching out to you with spam, too. Still, it’s a great option if you’re looking for a car loan refinance, advertising competitively low rates. You’ll just need to make sure you have plenty of equity in your vehicle since LendingTree lenders don’t offer loans with a loan-to-value ratio above 80%. That means underwater loans aren’t eligible for refinance. You can contact LendingTree by phone, but if you used LendingTree to get a loan with a partner lender you'll likely need to contact that lender instead. LendingTree was founded in 1996, and now has headquarters in Charlotte, North Carolina. Terms and Borrower Qualifications Vehicle Qualifications Pros & Cons Pros Minimum recommended credit score of 600 No loan fees Can refinance with the same lender Low rates for well-qualified borrowers Cons Doesn’t allow co-signers Many residency and car restrictions Doesn’t offer new or used auto loans Why We Chose It LendingClub, the former peer-to-peer lender, is now in the auto refinance business where it offers very good rates to borrowers with good credit. Borrowers with fair credit can be approved too—making it our top pick for this category, along with its high overall score as well—but if your credit is quite bad LendingTree may charge you a higher rate than most other lenders. On the bright side, LendingClub doesn’t charge any fees—origination fees, late fees, prepayment penalties, nothing. LendingClub is one of a handful of lenders that allow you to refinance your current LendingClub loan with another LendingClub loan, if you happen to qualify. However, be aware that there are many loan limitations with this lender. It’s not available in many sparsely populated states, for example, and there are many makes and models of popular cars LendingClub won’t finance. LendingClub was incorporated in 2007, and it's headquartered in San Francisco, California. See more of the best auto loans for fair credit to explore your options. Terms and Borrower Qualifications Vehicle Qualifications In addition: Pros & Cons Pros Neat, techy way to buy a car Offers seven-day return policy Long 45-day pre-approval window Cons Not available outside of contiguous U.S. Doesn’t allow co-borrowers, only co-signers Delivery charges not refundable if you return car Why We Chose It Carvana is a used car dealership that offers a completely online car-buying experience, similar to TrueCar; it's our highest-rated company that offers this service. You can apply for an auto loan online, find a car, and then pick it up or even have it delivered to you. One of Carvana’s claims to fame, however, is its car vending machines. If you’re pre-approved for a loan you can schedule an appointment to take a car for a test drive from one of its giant vending machines. The company will even provide you with a token to use. If you like the car, you can keep it. If not, you’ll have seven days to return it. It’s a futuristic way to buy a car that many people like; however, there can be problems with the setup. If you have a car delivered and you don’t like it, for example, you can return it, but the shipping charge is nonrefundable. That makes it costly and impractical to test drive different models like you would at a dealership. Carvana's customer support team is available by text or by live chat on the website. The company was founded in 2012, and is based in Tempe, Arizona. Terms and Borrower Qualifications Vehicle Qualifications Pros & Cons Pros Maximum accepted mileage of 160,000, according to customer service Offers lease buyout loans Refinancing available if you’re underwater on loan Can re-refinance your loan through OpenRoad again Cons Potentially high rates and fees Doesn’t allow co-signers Many vehicle restrictions Why We Chose It OpenRoad Lending’s website looks like it was designed in the previous decade. But it can be helpful if you’re struggling to make your auto loan payments and you’re not able to qualify for a better loan with another lender—especially if you need to refinance a loan for a high-mileage car, because OpenRoad Lending's 160,000 mile-limit is the highest disclosed limit among lenders we reviewed. It comes with very high origination fees ranging from $249 to $449, a 5% late payment fee, and interest rates that zoom into credit-card-debt territory for less-qualified borrowers. However, OpenRoad Lending is still better than many other types of alternative auto loans, such as those from buy-here-pay-here lenders. You can still qualify if you have a poor credit score, even if you’re underwater on your current loan—a common problem for people with bad car loans. OpenRoad Lending has a maximum loan-to-value ratio of 180%, meaning you may be able to borrow nearly twice your car’s actual value in order to pay off your existing loan—far more than most other lenders. OpenRoad Lending was founded in 2009, and is based in Fort Worth, Texas. If you need help, you can get in touch with OpenRoad by phone or email. Read more in our full OpenRoad Lending auto loans review. Terms and Borrower Qualifications Vehicle Qualifications If you’re looking for the best overall auto loans, try starting with PenFed; it's a credit union, but anyone can join for just $5 when approved for a loan. AUTOPAY is worth checking as well, especially if you'd like to browse a variety of lenders. LendingTree is also a top choice for a rate-comparison website. If you prefer sticking with credit unions, Consumers Credit Union is yet another good option that allows anyone to apply. Or, if you’re not too picky about your car and prefer a more streamlined experience, Carvana offers some unique and affordable financing options. And finally, while expensive, OpenRoad Lending offers a lot of potential if you’re looking to get out of a car loan with a high rate. Looking for a specific type of loan? See our top picks for auto loans in a variety of categories: An auto loan is an installment loan used to buy a new or used car, or to refinance an existing auto loan. Auto loans are usually secured, which means the vehicle serves as collateral for the loan. If you fail to make monthly car payments as agreed, the lender can seize the vehicle. You can use a personal loan to make a car purchase, but secured auto loans typically have lower rates because lenders have more security if you don't pay as agreed. Auto loan lenders may allow you to borrow more than the purchase price of the car, to account for taxes, fees, dealer upgrades, and other add-ons. Like other installment loans, when you borrow money with an auto loan the funds are provided in a lump sum. The borrower makes equal monthly installment payments until the term loan is paid off. The money is lent at interest, so the borrower ends up paying back more than they originally borrow. Longer loan terms may come with a lower monthly payment and lower annual percentage rates (APRs), but don't be fooled. In general, it's best to choose the shortest term and the highest monthly payments you can afford; this will make the overall loan as inexpensive as possible. When the loan is fully paid off, the vehicle belongs to the borrower (instead of the lender). Auto loans are available from traditional banks, online banks, credit unions, and lending marketplaces (which partner with banks and credit unions). You'll find new, used, and refinance auto loans from all of those sources, although some lenders only offer certain loan types; some lenders offer special deals for first-time car buyers, as well. Auto loans are also available through dealerships that partner with banks; in some cases you may find lower rates through a dealership, but it's worth getting pre-approved with lenders on your own to see what kind of rates you can get. Then, you can go to the dealership with some bargaining power—see if the dealer will beat the best rate you found on your own. Learn more in our expert explanation of how auto loans work. Some people choose the type of car they get based on the type of loan they'd like. For example, new cars are more expensive, but the loans are often much cheaper than for used cars—and that’s one reason many people prefer new cars over used cars. Auto loans can either be secured or unsecured. Most auto loans are secured by the very car you’re buying and offer lower rates because of that. Your car serves as collateral for the loan and if you don’t repay it, the lender will repossess your car. Unsecured car loans aren’t as common, but some lenders (like LightStream) do offer them. They’re often faster to get but they charge much higher rates because the lender doesn’t have an easy way to get their money back if you default. Auto loan rates depend in part on the federal prime rate, but the borrower's qualifications play a large role as well. If you’re not able to qualify on your own and you have someone who’s willing to help, applying with a co-signer can improve your odds of qualifying for a loan. “When my wife and I were shopping for a car last year, we prepared by getting a pre-qualification from our bank—Bank of America. We did it online, through our account portal. It was really easy, and because we have several accounts with BofA,we qualified for a rate discount. We planned on using the pre-approval as a negotiating tool, and figured the dealer would offer a better rate. To our surprise, the dealer couldn’t beat it. So now we have yet another account with BofA.” — Lars Peterson (Investopedia Senior Editor, Financial Products and Services). Once you find the car you want, you can provide the details to your chosen lender and submit a full loan application. The lender will usually disburse the loan funds directly to you, either by check or bank deposit. In some cases lenders may send the money directly to dealerships; for refinance loans, lenders may send the money directly to the current holder of your loan. Your new lender will provide you with details on how to set up an account, manage your loan, and make payments. See how much car you can afford with our auto loan calculator; plug in your details, and you can see how big your monthly payments will be at different terms and interest rates. Say you take out a loan for a new 2024 Ford F-150 Platinum with the following details, for example: With those terms, you'd have a monthly loan payment of $1,025.52. If you were to make a larger down payment, such as $8,000, you could take out a smaller loan ($56,915), and your monthly payment would be $974.17. You'd pay less overall: $70,140.59 over the life of the loan. In the News: Auto loan rates are related to the Federal Reserve's benchmark rate—if the Fed rate goes up, average auto loan rates usually will, as well. Today's interest rates are pushed up by the Federal Reserve’s rate-hike campaign that began in March 2022 to tame decades-high inflation. The Fedheld rates steadyfor a sixth consecutive time at its meeting the concluded May 1. The 5.25% to 5.50% range is the highest the federal funds rate has been since 2001, and Fed officials noted in their statement that there has been a lack of progress toward the committee’s goal of lowering inflation. With consumer prices showing a 3.5% inflation rate in March, Fed officials don’t foresee reducing their benchmark rate until they're confident inflation is moving toward 2%. We included big banks like Chase, Capital One, Bank of America, and U.S. Bank in our review of the auto loan industry, but these financial institutions don't always make our "Best" lists. Why? Although these banks are reliable and used by millions of people, they usually don't offer the very best rates and terms. Online banks and lender marketplaces tend to have lower operating costs, and can pass those savings on to borrowers. Big banks tend to score well in our rankings, but they don't usually come out on top when it comes to auto loan interest rates, flexibility in terms, and accessibility. Our top-rated lenders offer the lowest rates on new and used car loans in the auto financing industry—if you've got good credit and you want the best rates, take a look at PenFed, AUTOPAY, Consumers Credit Union, LendingTree, LendingClub, and OpenRoad Lending. You'll also find several good options for refinancing, as well. Not everyone qualifies for the best auto loan rates. Here are some things you can do before and during the application process to tip the odds in your favor: There is no overall minimum credit score you’ll need to qualify for an auto loan. It depends on the lender; each lender has its own credit requirements. In general, if you have good or excellent credit (670 or higher), you’ll qualify for the best auto loan rates. Lenders typically use an auto-loan specific credit scoring model. See the best car loans for bad credit if you’re dealing with a lower score. You can obtain an auto loan through a dealer in a dealer-arranged financing agreement or directly from an online lender, credit union, or traditional bank. Some dealers also offer in-house financing for car buyers with bad credit. Ultimately, the best time to buy a car is when you need one. But if you have some flexibility, experts recommend the following times: According to a report by Experian in Nov. 2023, average rates for 2023 were 7.03% for new cars and 11.35% for used cars, although rates will have changed somewhat since then. If you get a rate lower than the average, you can generally feel like you're getting a good deal. Your rate will vary depending on your credit score, income, and other factors. By Nov. 2023, the average interest rate for used cars in 2023 was 11.35%, according to Experian. Here's the average used car loan interest rate for each credit score range: We researched and reviewed 21 companies to find the best seven lenders you see on the list above. While we write individual reviews for most companies, we do not always write reviews for companies we would not recommend. Below are the companies we researched along with links to individual company reviews to help you learn more before making a decision: Alliant Credit Union, AUTOPAY, Bank of America, Capital One, CarMax, Carvana, Chase Auto, Consumers Credit Union, Credible, First Tech FCU, LendingClub, LendingTree, LightStream, NASA FCU, Navy Federal Credit Union, OpenRoad Lending, PenFed, PNC Bank, U.S. Bank, USAA, Vroom. Learn more about auto loans: Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of auto loan lenders. To rate providers, we collected hundreds of data points for a period of over two months across more than 20 auto loan lenders, including interest rates, fees, loan amounts, borrower requirements, and vehicle requirements, to ensure that our reviews help users make informed decisions for their borrowing needs. We also conducted a survey of 1,016 auto loan borrowers for attitudes and opinions about lenders and the loan approval and disbursem*nt process. Investopedia collected 1,176 key data points from 21 companies across three months to identify the most important factors for readers choosing an auto loan. We used this data to review each company for interest rates, loan requirements, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999, and has been helping readers find the best auto loans since 2020. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Board of Governors of the Federal Reserve System. "Consumer Credit - G.19." Experian. "State of the Automotive Finance Market Q3 2023." Bureau of Labor Statistics. "Consumer Price Index." Federal Reserve. "Federal Reserve Issues FOMC Statement." Experian. “Step-by-Step Checklist for Buying a New Car.” Experian. “What Credit Score Do I Need for an Auto Loan?” FICO. “What is a FICO® Score?” Progressive. "When is the best time to buy a car?" Experian. "State of the Automotive Finance Market Report." Related Terms Subprime Auto Loan: How It Works and Rates A subprime auto loan is a type of loan used to finance a car purchase offered to people with low credit scores or limited credit histories. more Buy Here, Pay Here (BHPH) Car Dealership: Meaning, How It Works The term “Buy Here, Pay Here (BHPH)” refers to auto dealerships in which the financing for the vehicles purchased is done in-house. more What Is a Secured Loan? How They Work, Types, and How to Get One Secured loans are loans that require collateral to borrow. Here’s how secured loans work and where to find them. more Emergency Loan: Types, Eligibility, Pros and Cons Emergency loans are a type of personal loan that provides fast access to cash. Learn how emergency loans work and about their pros and cons. more Private Student Loans: What They Are, How They Work Private student loans are offered through third-party lenders, and they don't come with the protections afforded to federal student loan borrowers. more Maximum Loan Amount: Definition and Factors Lenders Consider A maximum loan amount describes the total that one is authorized to borrow. It is used for standard loans, credit cards, and line-of-credit accounts. moreCompare Best Auto Loan Rates, Lenders, & Financing for May 2024 - Rates From 1.99%
Best Overall : PenFed
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Best for Bad Credit/Low Rates : AUTOPAY
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Best Credit Union : Consumers Credit Union
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Best for Refinance : LendingTree
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Best for Fair Credit : LendingClub
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Best for Full Car Buying Experience : Carvana
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Best for High Maximum Accepted Mileage : OpenRoad Lending
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The Bottom Line
Compare Best Auto Loan Lenders
Company Used APR Range Used Loan Amounts Used Loan Terms Min. Rec. Credit Score PenFed Best Overall 6.49%–17.99% $500–$150,000 3–7 years Not disclosed AUTOPAY Best for Bad Credit/Low Rates As low as 5.69% $2,500–$100,000 2–8 years 500 Consumers Credit Union Best Credit Union As low as 6.84% $500–$350,000 36–84 months Not disclosed LendingTree Best for Refinance As low as 5.99% (Refinance) Not disclosed 36–72 months (Refinance) Not disclosed LendingClub Best for Fair Credit 4.99%–24.99% (Refinance) $4,000–$55,000 2–7 years (Refinance) 600 Carvana Best for Full Car Buying Experience Not disclosed Not disclosed Not disclosed 500 OpenRoad Lending Best for High Maximum Accepted Mileage 1.99%–24.99% (Refinance) $7,500–$100,000 (Refinance) 24–72 months (Refinance) 500 What Is an Auto Loan and How Does It Work?
Auto Loan Rates
Where To Get an Auto Loan
Types of Auto Loans
How to Get the Lowest Interest Rates On Your Auto Loan
Auto Loan Rates by Credit Score
Credit Level/Score Used Car Loans New Car Loans Super Prime: 781–850 7.43% 5.61% Prime: 661–780 9.33% 6.88% Nonprime: 601–660 13.53% 9.29% Subprime: 501-600 18.39% 11.86% Deep subprime: 300–500 14.17% 21.18% How to Apply for an Auto Loan
Auto Loan Calculator
Auto Loans: Pros and Cons
Pros Cons
Where Are the Big Banks?
Frequently Asked Questions
Which Companies Are Best for Car Loans?
How Do You Get the Best Car Loan Rate?
What Credit Score Do You Need to Qualify for a Car Loan?
Where Can I Get an Auto Loan?
When Is the Best Time to Buy a Car?
What Is a Good APR for an Auto Loan?
What Are Used Car Loan Interest Rates?
Companies We Reviewed
Other Types of Auto Loans
Guide to Auto Loans
How We Picked the Best Auto Loans
Why You Should Trust Us
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See Also
How to Find the Total Amount Paid in an Interest Rate EquationEMI Formula: How To Calculate EMI With ExamplePersonal Loan EMI Calculator - Calculate Your EMIs Online - Bajaj Finance LimitedWhat You Should Know about Car Finance Calculators Best Auto Loans for Fair Credit of 2024 Best Auto Refinance Loans for May 2024 Best Used Car Loans for 2024 Best Motorcycle Loans of 2024 Best Private Party Car Loans Best RV Loans for May 2024
FAQs
Compare Best Auto Loan Rates, Lenders, & Financing for May 2024 - Rates From 1.99%? ›
Auto loan rates are expected to stop rising and possibly start descending in 2024, but they'll likely remain elevated in comparison to recent years (alongside the broader interest rates environment).
What is the best auto loan rate right now? ›Compare Car Loan Rates
| Top Auto Loan Lender | Lowest APR | Loan Amount |
|---|---|---|
| PenFed Credit Union | 5.24% | $500 to $150,000 |
| Auto Approve | 5.24%** | $5,000 to $85,000 |
| Consumers Credit Union | 6.54% | No minimum or maximum |
| Auto Credit Express | Varies | Varies |
Auto loan rates are expected to stop rising and possibly start descending in 2024, but they'll likely remain elevated in comparison to recent years (alongside the broader interest rates environment).
Which bank is best for auto loans? ›Best auto loans
- Best from a big bank: Capital One Auto Finance.
- Best from a credit union: PenFed Auto Loans.
- Best for rate shopping: myAutoloan.
- Best for online car shopping: Carvana.
- Best for used vehicles: CarMax Auto Finance.
- Best for refinancing: Autopay.
The Best Auto Loan Rates For New Cars (May 2024)
- 0% Financing: Mazda CX-30, CX-50, CX-5, CX-90; Kia EV9, EV6, Niro EV, Nissan Ariya and Rogue; Subaru Solterra; Ford Edge; VW Taos.
- 0.9% APR: GMC Terrain, Honda Ridgeline, Kia Sorento, most Buick models.
Car Loan Interest Rates at Leading Banks
| Bank Name | Interest Rates | EMI per Rs. 1 lakh for 7 Years |
|---|---|---|
| Corporation Bank | 7.40% - 7.50% | Rs. 1,529 - Rs. 1,534 |
| HDFC Bank | 8.80% – 10.00% | Rs. 1,599 - Rs. 1,660 |
| ICICI Bank | 8.82% - 12.75% | Rs. 1,600 - Rs. 1,806 |
| IDBI Bank | 8.40% - 9.00% | Rs. 1,579 - Rs. 1,609 |
Credit Unions
The main reason that it makes sense to buy an auto loan from a credit union is the lower loan interest rates. Because credit unions are not-for-profit institutions, they typically offer auto loans with significantly lower interest rates than the average rates offered by banks.
"2024 is probably the best year since the pandemic to buy a new car," Mark Schirmer, director of industry insights at Cox Automotive, told ABC News. "2021 and 2022 were really difficult years. Dealers are talking about discounts again ... this was not happening 18 months ago.
What is the outlook for auto loans in 2024? ›Experts have predicted an average rate of 7% for five-year new car loans by the end of 2024. This is a decrease from current rates, but still a significant increase from what has been seen in previous years.
What is the average APR for a car loan in 2024? ›Average Auto Loan Rates in March 2024
| Credit Score | New Car Loan | Refinance Car Loan |
|---|---|---|
| 750 or higher | 12.77% | 7.89% |
| 700-749 | 12.65% | 8.98% |
| 600-699 | 17.84% | 10.09% |
| 451-599 | 22.56% | 12.76% |
Is it better to go through a lender or bank for a car loan? ›
Getting a car loan via a bank or credit union is by far the best option for almost everyone. Not only do you get better interest rates which translates to lower payments and cost overall, but you also have negotiating power on your side so you can get a better price on the car.
What is a good interest rate on a 72 month car loan? ›An interest rate under 5% is a great rate for a 72-month auto loan. However, the best loan offers are only available to borrowers who have the best credit scores and payment histories.
Which month is the best month to buy a car? ›What Is the Best Month to Buy a Car? In addition to certain times of the week or holidays, some months are better to buy or lease new vehicles or purchase used cars than other months. In general, May, October, November and December are the best months to visit the car dealership.
Is 1.9% APR good? ›If you're buying a car with an interest rate of 1.9% APR, you may be getting a good rate. When it comes to manufacturer car incentives on new cars and trucks, financing deals typically start at 0%, followed by 1.9% APR. While there may be lower interest rates available, 1.9% can be a good deal under some circ*mstances.
Are you offered a better interest rate at the bank or car dealership? ›Even if you think you may use dealer financing, starting with preapproval from a bank, credit union or online lender helps you squeeze the most out of your auto loan. Outside lenders are often able to offer more competitive interest rates than dealerships and don't need to mark up their rates to turn a profit.
What month are cars cheapest? ›December has the highest discounts from the manufacturer's suggested retail price (MSRP) for both new and used cars, according to Edmunds transaction data. However, if you need a car in March, we don't recommend waiting for the entire year. There are great deals out there regardless of the time of year.
What is a good interest rate for a 72 month car loan? ›An interest rate under 5% is a great rate for a 72-month auto loan. However, the best loan offers are only available to borrowers who have the best credit scores and payment histories.
What interest rate can I get with a 750 credit score for a car? ›Average car loan interest rates by credit score
| Credit score | Average APR, new car | Average APR, used car |
|---|---|---|
| Superprime: 781-850. | 5.64%. | 7.66%. |
| Prime: 661-780. | 7.01%. | 9.73%. |
| Nonprime: 601-660. | 9.60%. | 14.12%. |
| Subprime: 501-600. | 12.28%. | 18.89%. |
May 16, 2024
The current average APR rate for a person with a 781-850 credit score when buying a new car is 4.75% and 5.99 when buying a used car. It's possible to get a credit card with no credit, but you need to know which types of accounts to apply for (and which applications to avoid as well).
Is 2.9 A good car loan rate? ›In today's automotive market, with prices and rates on the rise, a 2.9% APR is a good deal.