Compare Auto Loans, Rates and Lenders
What to know about auto loans before you apply.
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Auto loans are available for buying new and used cars, buying out car leases and refinancing current auto loans. But not every lender offers every kind of auto loan or serves every level of credit.
Below you can learn more about the types of auto financing available and compare lenders to find the best car loan rates. We also provide basic information about applying for an auto loan.
Compare Auto Loans, Rates and Lenders
Lender | Best for | Est. APR | Loan amount | Min. credit score | Learn more |
|---|---|---|---|---|---|
 Consumers Credit Union - Used car purchase loan Learn moreon Consumers Credit Union's website on Consumers Credit Union's website | Best for Used auto purchase | 5.54-18.54% | $7,500-$500,000 | 620 | Learn moreon Consumers Credit Union's website on Consumers Credit Union's website |
Consumers Credit Union - New car purchase loan Learn moreon Consumers Credit Union's website on Consumers Credit Union's website | Best for New auto purchase | 5.54-17.54% | $7,500-No max. | 620 | Learn moreon Consumers Credit Union's website on Consumers Credit Union's website |
| Best for Used auto purchase | 8.49-15.94% | $5,000-$100,000 | 660 | Learn moreon LightStream's website on LightStream's website |
Consumers Credit Union - Used car purchase loan
5.54-18.54%
$7,500-$500,000
620
- No vehicle restrictions.
- Offers rate estimates through its website using a soft credit check.
- Offers rate discount with automatic payment.
- Provides online car-buying service with discounted pricing.
- Allows co-signers.
- Credit union membership required to get a loan.
- No rate discounts if using online car-buying service.
- Social Security number required for online rate estimate.
- Minimum annual gross income: None.
- Maximum debt-to-income ratio: No set requirement but is generally 50% or under for approved loans.
- Bankruptcy-related restrictions: No open bankruptcies.
- Maximum mileage: None.
- Maximum loan-to-value ratio: 125%.
Consumers Credit Union - New car purchase loan
5.54-17.54%
$7,500-No max.
620
- Offers rate estimates through its website using a soft credit check.
- Takes applications online, by phone, in branches or at authorized dealerships in Illinois and southern Wisconsin.
- Offers rate discount with automatic payment.
- Provides online car-buying service with discounted pricing.
- Allows co-signers.
- Credit union membership required to get a loan.
- No rate discounts if using online car-buying service.
- Social Security number required for online rate estimate.
- Minimum annual gross income: None.
- Maximum debt-to-income ratio: No set requirement but is generally 50% or under for approved loans.
- Bankruptcy-related restrictions: No open bankruptcies.
LightStream - Used car purchase loan
8.49-15.94%
$5,000-$100,000
660
- Available in all states.
- Customer service available on Saturday.
- No origination fee.
- Fully online application available.
- Co-borrowers or co-signers allowed.
- No vehicle restrictions.
- No down payment requirements.
- Doesn’t offer pre-qualification with a soft credit check.
- Doesn’t provide a Spanish version of website.
- Minimum annual gross income: None.
- Maximum debt-to-income ratio: Did not disclose.
- Bankruptcy restrictions: Yes. Details not disclosed.
- Maximum mileage: None.
- Maximum loan to value ratio: None.
LightStream - New car purchase loan
8.49-15.94%
$5,000-$100,000
660
- Available in all states.
- Customer service available on Saturday.
- No origination fee.
- Fully online application available.
- Co-borrowers or co-signers allowed.
- No vehicle restrictions.
- No down payment requirements.
- Doesn’t offer pre-qualification with a soft credit check.
- Doesn’t provide a Spanish version of website.
- Minimum annual gross income: None.
- Maximum debt-to-income ratio: Did not disclose.
- Bankruptcy restrictions: Yes. Details not disclosed.
- Maximum mileage: None.
- Maximum loan to value ratio: None.
MyAutoloan - Used car purchase loan
3.94-21.00%
$8,000-$100,000
575
- Some lending partners offer pre-qualification with a soft credit check.
- Some network lenders offer rate discount with automatic payment.
- No origination fees.
- Fully online application available for applicants who prefer it.
- Co-borrowers or co-signers are allowed in nearly all cases.
- Not available in Hawaii or Alaska.
- Customer service not available on weekends.
- Doesn’t provide Spanish version of website.
- Minimum annual gross income: $26,100.
- Maximum debt-to-income ratio: Not provided
- Bankruptcy-related restrictions: Must be discharged or dismissed.
- Maximum mileage: 125,000.
- Maximum loan to value ratio: Not provided.
Capital One - Used car purchase loan
N/A
$4,000-Max. not disclosed
Did not disclose
- Pre-qualify with a soft credit check.
- Auto Navigator offers car shopping and loan pre-qualification by website or app.
- Charges no origination fee.
- Borrowers can choose loan payment due date.
- Not available in a few states.
- Must purchase vehicle at a participating dealership.
- Does not offer rate discounts for automatic payment.
- Social Security number required to submit initial application.
- Minimum annual gross income: $18,000.
- Maximum debt-to-income ratio: Did not disclose.
- Bankruptcy restrictions: Has restrictions but details not disclosed.
- Maximum mileage: 120,000.
- Maximum loan to value ratio: Did not disclose.
MyAutoloan - New car purchase loan
3.69-21.00%
$8,000-$100,000
575
- Some lending partners offer pre-qualification with a soft credit check.
- Some network lenders offer rate discount with automatic payment.
- No origination fees.
- Fully online application available for applicants who prefer it.
- Co-borrowers or co-signers are allowed in nearly all cases.
- Not available in Hawaii or Alaska.
- Customer service not available on weekends.
- Doesn’t provide Spanish version of website.
- Minimum annual gross income: $26,100.
- Maximum debt-to-income ratio: Not provided
- Bankruptcy-related restrictions: Must be discharged or dismissed.
Capital One - New car purchase loan
N/A
$4,000-Max. not disclosed
Did not disclose
- Pre-qualify with a soft credit check.
- Auto Navigator offers car shopping and loan pre-qualification by website or app.
- Charges no origination fee.
- Borrowers can choose loan payment due date.
- Not available in a few states.
- Must purchase vehicle at a participating dealership.
- Does not offer rate discounts for automatic payment.
- Social Security number required to submit initial application.
- Minimum annual gross income: $18,000.
- Maximum debt-to-income ratio: Did not disclose.
- Bankruptcy restrictions: Has restrictions but details not disclosed.
Want to compare more options? Here are our other top picks:
- Carvana - Used car purchase loan
- Digital Federal Credit Union - Used car purchase loan
- CarMax - Used car purchase loan
- Chase Auto - Used car purchase loan
- PenFed Credit Union - Used car purchase loan
- Alliant Credit Union – Used car purchase loan
- Navy Federal Credit Union - Used car purchase loan
- Vroom - Used car purchase loan
- Bank of America - Used car purchase loan
- Digital Federal Credit Union - New car purchase loan
- Chase Auto - New car purchase loan
- PenFed Credit Union - New car purchase loan
- Alliant Credit Union – New car purchase loan
- Navy Federal Credit Union - New car purchase loan
- Bank of America - New car purchase loan
7 types of auto loans
New car purchase loans enable you to borrow money to buy a new car and pay it off over time. Lenders typically define a new car as one that has never been titled and is the current or previous model year.
Used or pre-owned cars are older than the previous model year. Loans for used cars may come with certain restrictions, such as maximum mileage or vehicle age. These loans can help you pay for a used car you buy from a dealer, from an online car retailer or from a private party.
Auto refinancing loans enable you to replace your current auto loan with a new one from another lender. You may want to refinance if you think you could now qualify for a lower interest rate. Refinancing a car loan can be a way to lower your car payment or pay off your loan sooner, saving you money on the total interest you pay.
Want to refinance your auto loan? See if you pre-qualify.
Cash-out auto refinance loans work like regular refinancing, except you can borrow extra money against the equity in your car and roll that amount into the refinance loan.
Lease buyout loans finance the purchase of your leased vehicle, so you can keep it or sell it to profit from any equity you have in the car.
Auto loans for bad credit are offered by lenders that are more flexible about working with borrowers who have low credit scores, no credit history or past bankruptcies. Not all lenders serve this customer, and those who do charge higher interest rates.
First-time car buyer loans can be challenging to get when you have no previous car loan or credit history. But some lenders have more flexible credit requirements to help first-time car buyers qualify, although it's often with a higher interest rate.
What to know before you apply for an auto loan
Regardless of the type of auto loan you apply for, here is some basic information that can help you through the process.
Interest rate or APR: Your loan's interest rate, also called annual percentage rate or APR, is the amount you agree to pay each year to borrow money, on top of the cost of the car. It includes any lender fees and is expressed as a percentage. APRs vary, but you can use the table below to estimate the interest rate you might expect for your credit score on a new or used auto loan.
Your credit score is only one factor that goes into determining your APR. Lenders also consider other criteria, such as income, the loan term and the type of vehicle you’re buying.
Credit score | Average APR, new car | Average APR, used car |
|---|---|---|
Superprime: 781-850. | 5.18%. | 6.79%. |
Prime: 661-780. | 6.40%. | 8.75%. |
Nonprime: 601-660. | 8.86%. | 13.28%. |
Subprime: 501-600. | 11.53%. | 18.55%. |
Deep subprime: 300-500. | 14.08%. | 21.32%. |
Source: Experian Information Solutions. | ||
>> MORE: How to get a car loan
Credit scores fall within a range of 300 to 850 on two basic scoring models, FICO and VantageScore. Some auto lenders use industry-specific scoring on top of the basic FICO model when making auto loan decisions, so the rate and whether you’re approved can depend on which scoring model an auto lender uses. You can get your credit report with credit score for free through NerdWallet or from annualcreditreport.com.
Pre-qualification vs. preapproval: Some lenders use the terms “pre-qualify” and “preapprove” interchangeably, but in most cases they are different. When a lender pre-qualifies you for an auto loan, you will usually provide a limited amount of information to see an estimate of how much you may qualify to borrow and at what interest rate. Many lenders do only a soft credit inquiry for pre-qualification, which won’t affect your credit scores.
Auto loan preapproval usually requires you to provide more personal information, such as a Social Security number. It’s a conditional approval of credit, pending verification of your information, and typically carries more weight than pre-qualification. If you’re buying from a dealership, presenting a preapproved loan offer from another lender gives the dealership a rate to beat.
Neither pre-qualification nor preapproval guarantees loan approval, and the loan rate and terms can change later in the loan process. A hard credit inquiry, which temporarily lowers your credit scores, will be done before a loan is finalized.
Auto loan term: The term is the amount of time you have to repay a loan. The most common loan terms are 24, 36, 48, 60, 72 and 84 months. NerdWallet recommends avoiding long car loan terms if possible, limiting new cars to 60 months and used cars to 36.
Going with a longer term loan may result in a lower monthly payment, but you will pay more in interest over the life of the loan. Also, because cars depreciate quickly, you could end up owing more than a car is worth, which is called being “underwater” or "upside down” on a car loan.
>> MORE: Car payment calculator
Compare auto loans from multiple lenders
Lenders vary when it comes to the criteria they use for approving auto loans and setting rates, so you may benefit from applying to several.
When deciding where to apply, consider any restrictions a lender may have. Some exclude certain makes and models of cars, or they limit the age or mileage of a vehicle. You can read auto lender reviews on NerdWallet to see restrictions for the lenders we’ve reviewed.
Last updated on May 8, 2023
NerdWallet's Compare Auto Loans, Rates and Lenders
- Consumers Credit Union - Used car purchase loan: Best for Used auto purchase
- Consumers Credit Union - New car purchase loan: Best for New auto purchase
- LightStream - Used car purchase loan: Best for Used auto purchase
- LightStream - New car purchase loan: Best for New auto purchase
- MyAutoloan - Used car purchase loan: Best for Used auto purchase
- Capital One - Used car purchase loan: Best for Used auto purchase
- MyAutoloan - New car purchase loan: Best for New auto purchase
- Capital One - New car purchase loan: Best for New auto purchase
- Carvana - Used car purchase loan: Best for Used auto purchase
- Digital Federal Credit Union - Used car purchase loan: Best for Used auto purchase
- CarMax - Used car purchase loan: Best for Used auto purchase
- Chase Auto - Used car purchase loan: Best for Used auto purchase
- PenFed Credit Union - Used car purchase loan: Best for Used auto purchase
- Alliant Credit Union – Used car purchase loan: Best for Used auto purchase
- Navy Federal Credit Union - Used car purchase loan: Best for Used auto purchase
- Vroom - Used car purchase loan: Best for Used auto purchase
- Bank of America - Used car purchase loan: Best for Used auto purchase
- Digital Federal Credit Union - New car purchase loan: Best for New auto purchase
- Chase Auto - New car purchase loan: Best for New auto purchase
- PenFed Credit Union - New car purchase loan: Best for New auto purchase
- Alliant Credit Union – New car purchase loan: Best for New auto purchase
- Navy Federal Credit Union - New car purchase loan: Best for New auto purchase
- Bank of America - New car purchase loan: Best for New auto purchase
