Shopping for the lowest interest rate on your auto loan before you buy your next car puts you in a stronger negotiating position and saves you money over the life of your loan. If you already have a loan, you may be able to lower your monthly payment and save money by refinancing your car loan.
Find your best interest rate by comparing multiple auto loan offers. Learn more about what you need to know before you apply below.
| Credit score | Average APR, new car | Average APR, used car |
|---|---|---|
| Source: Experian Information Solutions | ||
| Superprime: 781-850 | 3.23% | 3.95% |
| Prime: 661-780 | 4.16% | 5.68% |
| Nonprime: 601-660 | 7.05% | 10.44% |
| Subprime: 501-600 | 11.35% | 16.92% |
| Deep subprime: 300-500 | 14.07% | 19.81% |
Purchase auto loans
| Lender | Minimum FICO | APR* | Loan amount / maximum term | Key facts |
|---|---|---|---|---|
 MyAutoloan review | 500 | 1.99% to 24.9% (average: 13.9%) | $7,500 - $100,000/ 84 months |
|
 LightStream review | 660 | 3.09% to 7.69% (with autopay) | $5,000 - $100,000/ Varies |
|
 Capital One review | 500 | As low as 3.89% (for excellent credit) | Min: $4,000/ 72 months |
|
 CarFinance.com review | 525 | 7.99% to 14.99% | $7,500 - $45,000/ 72 months |
|
 SpringboardAuto review | 500 | 5% and up; max varies by state (average: 12%) | $7,500 - $45,000/ 72 months |
|
 Consumers Credit Union review | 640 | As low as 2.24% (with discounts) | $500 - $500,000/ 84 months |
|
Online car dealer with financing
| Lender | Minimum FICO | APR * | Loan amount / maximum term | Key facts |
|---|---|---|---|---|
 Carvana review | None | NA | No restriction/ 72 months |
|
Refinance auto loans
| Lender | Minimum FICO | APR* | Minimum loan amount | Maximum vehicle age & mileage | Key facts |
|---|---|---|---|---|---|
 RateGenius review | 525 | 1.74% - 18.87% | $10,000 | 10 yrs 150,000 mi | Available in all 50 states Requires hard credit pull for personalized loan offer |
Capital One review | 560 | 3.39% - 24.99% | $7,500 | 7 yrs No restriction | Available in all states except Alaska and Hawaii Prequalify with no risk to your credit score |
 Autopay review | 600 | 1.99% - 17.99% | $5,000 | 11 yrs 125,000 mi | Available in all 50 states Does not require hard credit pull until offer is accepted |
CarFinance.com review | 525 | 7.99% - 21.9% | $7,500 | 8 yrs 100,000 mi | Available in 44 states and Washington, D.C. Requires hard credit pull for personalized loan offer |
 | 640 | 3.34% - 4.84% | $5,000 | 10 yrs 125,000 mi (varies by term) | Available in all states except Nevada Does not require hard credit pull until offer is accepted |
 MyAutoloan review | 500 | 1.84% - 29.4% | $7,500 | 10 yrs 125,000 mi | Available in all states except Alaska and Hawaii Requires hard credit pulls (multiple offers) |
LightStream review | 660 | 3.09% - 8.94% (includes autopay discount) | $5,000 | No restrictions | Available in all 50 states Requires hard credit pull for personalized loan offer |
 IFS review | 550 | 2.49% - 23.99% | $5,000 | 10 yrs 100,000 mi | Available in all 50 states Requires hard credit pull for personalized loan offer |
 Lending Club review | 510 | 3.49% - 24.99% | $5,000 | 10 yrs 120,000 mi | Available in 32 states Does not require hard credit pull until offer is accepted |
 OpenRoad Lending review | 500 | 1.9% - 24.9% | $10,000 | 10 yrs 150,000 mi | Available in 40 states Requires hard credit pull for personalized loan offer |
Consumers Credit Union review | 640 | 2.24% - 21.99% (includes discounts) | $500 | No restrictions | Available in all 50 states Requires hard credit pull for personalized loan offer |
Before you apply, use this auto loan calculator to estimate your monthly payment. It’s recommended that your car expenses not exceed 20% of your take-home pay. Once you apply, you can use the calculator to compare loan offers.
Use the auto loan refinance calculator to see how much you can save by refinancing.
What to know before you apply
Interest rates: The interest rate you’ll get depends on your credit score and income, the length of the loan you choose and the vehicle. If you have a loan and make consistent, on-time payments and your credit score improves, you may be able to refinance your car loan to get a better rate and lower your monthly payment.
Loan terms: Some lenders offer loans for up to 84 months. However, it’s best to pay off a car loan quickly since cars depreciate rapidly. Owing more on the loan than the car is worth is called being “underwater” or “upside down,” which is a risky financial situation. Also, the best interest rates are available for shorter loan terms. NerdWallet recommends 60 months for new cars and 36 months for used cars.
“Soft” vs. “hard” credit pull: Some lenders do a “soft pull” of your credit to pre-qualify you for a loan. This doesn’t damage your credit score, but it also doesn’t guarantee you’ll be approved for a loan or get the exact rate you’re quoted. Other providers run a full credit check, which temporarily lowers your credit score by a few points. But again, your final rate could differ slightly from your preapproval quote. A hard pull will be required in all cases before a loan is finalized.
Rate shopping: Applying to several lenders helps you find the most competitive interest rate. However, it can lead to your being contacted by multiple lenders, or even dealers when you apply for a purchase loan, especially if you use a service that compares offers for you (such as myAutoloan).
- Make all applications within a short rate-shopping window. Credit reporting agencies count multiple hard inquiries made within a certain period — usually 14, 30 or 45 days — as only one inquiry. However it’s also smart to check your credit score afterward to be sure this is the case.
- If you’re worried about getting overwhelmed by calls and emails, create a new email account and get a free Google Voice phone number that you can check separately.
- Also check the loan terms that your bank or credit union offers. Their rates can be competitive with those of online lenders.
Restrictions: Some lenders only work with a network of dealerships. Others won’t lend money to buy cars from private sellers. Lenders may also exclude some makes of cars, certain models and types of vehicles, such as electric cars.
Funding: Once the loan is finalized, the lender will offer you a loan with a maximum amount at a stated interest rate. For purchase loans, lenders provide the money in a variety of ways: a no-obligation check, direct deposit to your bank account or a certificate to be used at a car dealership. For auto refinance loans, the lender typically pays off your old lender and you begin making payments to the new lender.
Source for credit range information in calculator: State of the Automotive Finance Market, Experian Information Solutions, Inc.
You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. Here’s how we make money.
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