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Compare Auto Loans, Rates and Lenders

What to know about auto loans before you apply.

By
NerdWallet
May 8, 2023

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Compare Auto Loans, Rates and Lenders

Lender
Best for
Est. APR
Loan amount
Min. credit score
Learn more
Consumers Credit Union

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

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
LightStream

LightStream - Used car purchase loan

Learn moreon LightStream's website
on LightStream'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
Learn moreon Consumers Credit Union's website
on Consumers Credit Union's website
Consumers Credit Union

Consumers Credit Union - Used car purchase loan

Est. APR

5.54-18.54%

Loan amount

$7,500-$500,000

Min. credit score

620

Key factsBest for applicants looking for more flexibility and fewer restrictions when financing a used car.
Pros
  • 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.
Cons
  • 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.
Qualifications
  • 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%.
Read Full Review
Consumers Credit Union
Learn moreon Consumers Credit Union's website
on Consumers Credit Union's website
Consumers Credit Union

Consumers Credit Union - New car purchase loan

Est. APR

5.54-17.54%

Loan amount

$7,500-No max.

Min. credit score

620

Key factsBest for applicants wanting to take advantage of rate discounts and other credit union benefits.
Pros
  • 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.
Cons
  • 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.
Qualifications
  • 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
Learn moreon LightStream's website
on LightStream's website
LightStream

LightStream - Used car purchase loan

Est. APR

8.49-15.94%

Loan amount

$5,000-$100,000

Min. credit score

660

Key factsBest for borrowers with good or excellent credit wanting to buy a used car — either from a dealer or private party.
Pros
  • 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.
Cons
  • Doesn’t offer pre-qualification with a soft credit check.
  • Doesn’t provide a Spanish version of website.
Qualifications
  • 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
Learn moreon LightStream's website
on LightStream's website
LightStream

LightStream - New car purchase loan

Est. APR

8.49-15.94%

Loan amount

$5,000-$100,000

Min. credit score

660

Key factsBest for borrowers with good or excellent credit wanting to buy a new car.
Pros
  • 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.
Cons
  • Doesn’t offer pre-qualification with a soft credit check.
  • Doesn’t provide a Spanish version of website.
Qualifications
  • 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
Learn moreon MyAutoloan's website
on MyAutoloan's website
MyAutoloan

MyAutoloan - Used car purchase loan

Est. APR

5.54-21.00%

Loan amount

$8,000-$100,000

Min. credit score

575

Key factsBest for applicants wanting to be matched and work directly with potential lenders that may best meet their needs. Bad- and fair-credit borrowers may qualify.
Pros
  • 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.
Cons
  • Not available in Hawaii or Alaska.
  • Customer service not available on weekends.
  • Doesn’t provide Spanish version of website.
Qualifications
  • 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
Learn moreon Capital One's website
on Capital One's website
Capital One

Capital One - Used car purchase loan

Est. APR

N/A

Loan amount

$4,000-Max. not disclosed

Min. credit score

Did not disclose

Key factsBest for applicants wanting to pre-qualify for financing and find a used vehicle online, before visiting the dealership.
Pros
  • 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.
Cons
  • 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.
Qualifications
  • 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
Learn moreon MyAutoloan's website
on MyAutoloan's website
MyAutoloan

MyAutoloan - New car purchase loan

Est. APR

5.29-21.00%

Loan amount

$8,000-$100,000

Min. credit score

575

Key factsBest for applicants wanting to be matched and work directly with potential lenders that may best meet their needs. Bad- and fair-credit borrowers may qualify.
Pros
  • 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.
Cons
  • Not available in Hawaii or Alaska.
  • Customer service not available on weekends.
  • Doesn’t provide Spanish version of website.
Qualifications
  • Minimum annual gross income: $26,100.
  • Maximum debt-to-income ratio: Not provided
  • Bankruptcy-related restrictions: Must be discharged or dismissed.
Capital One
Learn moreon Capital One's website
on Capital One's website
Capital One

Capital One - New car purchase loan

Est. APR

N/A

Loan amount

$4,000-Max. not disclosed

Min. credit score

Did not disclose

Key factsBest for applicants wanting to pre-qualify for financing and find a new vehicle online, before visiting the dealership.
Pros
  • 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.
Cons
  • 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.
Qualifications
  • 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:

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.

Just answer a few questions to get personalized results from our lending partners.
on NerdWallet
Stack of money

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.

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.

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

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