6 Best Car Loan Rates

*APYs and rates could change at any time. The data presented here is current as of June 8, 2023.

Nobody desires to overpay for a new automobile. Finding the finest auto loan rates for your situation will help you maintain a reasonable monthly payment schedule and might even enable you to buy the dream car you’ve always believed was out of reach.

We’ve done a ton of research on the subject to find the best rates for 2023 auto loans. Discover how to select the best vehicle loan for you and see our top selections for the best interest rates on auto loans by reading on.

Our Top Picks for Best Car Loan Rates

  • PenFed Credit Union — Best for Flexible Options
  • Consumers Credit Union — Best for Used Cars
  • Lightstream — Best for New Cars
  • Autopay — Best for Refinancing Options
  • Capital One — Best for Personalization
  • CarsDirect — Best for Easy Online Quotes

Best for Flexible Options: PenFed Credit Union

PenFed Credit Union provides adaptable vehicle finance alternatives that can fit any budget, which is why we selected it.

Our recommendation for anyone looking for suitable repayment terms and either full or partial financing is PenFed Credit Union. If you don’t need to finance your car purchase in full, you can borrow a lower amount with loans ranging from $500 to $150,000.

Members can get reductions on vehicle price and the best new auto loan rates from the credit union when they buy a new automobile through the PenFed automobile Buying Service. Members of PenFed who use the program to buy specific brands also receive extra cash.

Plans for repayment differ according on the total amount borrowed. For instance, a loan of at least $5,000 is needed for an 84-month period, whereas a $500 minimum loan amount is required for a 36-month term. With PenFed, you can borrow up to 125% of the car’s total value, which can help you cover unforeseen expenses without having to pay cash.

The entire application procedure is conducted online, and anyone can submit one. But in order for the loan to be processed, you have to open a savings account with PenFed and deposit at least $5 in order to become a member.

The minimum credit score required to obtain an auto loan is not disclosed by PenFed. Attempting to prequalify won’t damage your credit because all the credit union needs is a gentle credit check.

Best for Used Cars: Consumers Credit Union

Why it was our choice: In addition to working with Rent-A-automobile and TrueCar, Consumers Credit Union has its own automobile buying business and provides a wide range of used cars for sale online.

You are not limited in how much you can borrow when purchasing an auto loan from Consumers Credit Union. Financing options are contingent upon your credit score and loan amount; nevertheless, you are limited to financing up to 100% of the vehicle’s worth.

You have two options for sending money to a dealership: you can use TrueCar and Enterprise Rent-A-Car to browse for vehicles. Additional savings might be found at Consumers Credit Union’s online car-buying service.

Although anybody can apply for a car loan, loan acceptance is contingent upon membership in the Consumers Credit Union. To become a member, you must pay the Consumers Cooperative Association a one-time charge of $5.

Members will save 0.25% off the interest rate on their loan if they allow Consumers Credit Union to set up automated payments. It is necessary to take money out of your Consumers Credit Union account.

Best for New Cars: Lightstream

The reason we selected it is that Lightstream offers loans with quantities ranging from $5,000 to $100,000 and doesn’t require a down payment.

Lightstream may not provide the lowest auto loan rates for brand-new vehicles, but it does let customers with stellar credit to take out a sizable loan with no down payment.

Because Lightstream provides unsecured loans, the interest rates and credit score requirements are higher. Furthermore, there is no pre-approval procedure offered by Lightstream; instead, you must apply for a loan and have your credit checked in order to find out if you qualify.

Finance is offered for the purchase of new, used, and antique cars, with loan durations ranging from 36 to 84 months.

Best for Refinancing Options: Autopay

Why it was our choice: You can choose the best strategy to achieve your financial objectives with Autopay’s three forms of auto loan refinancing.

You may locate the finest auto loan refinance rates to fit your budget by using Autopay’s network of online lenders. The online application may be completed in a matter of minutes, or you can speak with a representative over the phone to finish the process.

Three forms of financing are available from Autopay:

Refinancing your car can help you cut down on monthly payments, shorten the term of your loan, or get rid of co-signers.
Cash-out refinance: By refinancing, you can deduct up to $12,000 from the total amount of your loan. These monies can be used to pay off high-interest loans or consolidate debt.
Lease buyout: With these programs, you can buy a car before your lease expires. Any mileage or usage charges a dealer may impose at the end of a lease are avoided by an early buyback.

By connecting consumers with lenders offering loan rates up to 50% lower than what they’re already paying, Autopay claims to help users save an average of $105 every month.

Best for Personalization: Capital One

Why we selected it: You may locate the ideal new or used car for your budget by using Capital One’s Auto Navigator program.

You may easily shop and purchase a car online from the comfort of your home with Capital One. Because Capital One has collaborated with nearly 12,000 dealerships nationally, you don’t need to look for the “best auto loan rates near me.” To locate the ideal vehicle, use Capital One’s Auto Navigator to search for the precise make, model, and color.

Your credit score is unaffected by the pre-qualification procedure, which lets you know how much you may borrow before you make a purchase. After you’ve selected the ideal car, you can modify the terms and down payment to get the best possible bargain.

The terms of adjustable loans vary from 36 to 72 months. Pre-qualification is contingent upon the type of vehicle you wish to buy, your income, and your credit score. You can borrow 100% of the vehicle’s worth plus any dealer-installed supplemental products, such an extended warranty, with a $4,000 minimum loan amount.

Loans are only offered to customers who buy cars from approved dealers. Financing is not available from Capital One for purchases made from independent dealerships or private sellers.

Best for Easy Online Quotes: CarsDirect

Why it was our choice: CarsDirect makes it simple for consumers with bad credit or no credit to locate lenders online.

With the help of CarsDirect’s user-friendly online application, customers can rapidly enter their information and maybe receive a loan offer within a day. Furthermore, CarsDirect takes into account all borrowers, regardless of creditworthiness.

Borrowers who have had their private-party loan applications rejected because of poor credit or a history of bankruptcies can discover customized vehicle loan packages through the company’s network of dealerships. In order to help people who have no credit history establish a solid credit report, CarsDirect also assists them in finding personalized auto loans.

Since CarsDirect is not a direct lender, they merely serve as a middleman connecting borrowers and lenders who are prepared to extend credit. They have no bearing on the lender’s loan terms, APR, or approval procedure.

You could only be able to buy a car that is offered by the lender, depending on the specifics of the offer. The majority of lenders sell both new and used cars, however you might not find the one you’re looking for.

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