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 | 3.47% | 4.19% |
| Prime: 661-780 | 4.45% | 5.94% |
| Nonprime: 601-660 | 7.55% | 10.63% |
| Subprime: 501-600 | 12.14% | 16.72% |
| Deep subprime: 300-500 | 14.93% | 19.51% |
Purchase auto loans
| Lender | APR range | Minimum requirements | Rating and review |
|---|---|---|---|
 | 3.34% to 8.34% (for new cars with autopay discount) | Credit score: 660 Loan amount: $5,000 |
LightStream review |
 | As low as 3.99% (for excellent credit) | Credit score: 500 Loan amount: $4,000 |
Capital One review |
 | 1.99% to 24.9% | Credit score: 500 Loan amount: $7,500 |
MyAutoloan review |
 | 7.99% to 14.99% | Credit score: 525 Loan amount: $7,500 |
CarFinance review |
 | As low as 2.24% (with discounts) | Credit score: 640 Loan amount: $250 |
Consumers Credit Union review |
| Note: APR is used to evaluate the true cost of borrowing money and includes the interest rate. |
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Purchase auto loans
| Lender | Key facts | Rating and review |
|---|---|---|
| APR range: 3.34% to 8.34% (with autopay discount) Min credit score: 660 Min loan amount: $5,000 |
LightStream review |
| APR range: As low as 3.99% (for excellent credit) Min credit score: 500 Min loan amount: $4,000 |
Capital One review |
| APR range: 1.99% to 24.9% Min credit score: 500 Min loan amount: $7,500 |
MyAutoloan review |
| APR range: 7.99% to 14.99% Min credit score: 525 Min loan amount: $7,500 |
CarFinance review |
| APR range: As low as 2.24% (with discounts) Min credit score: 640 Min loan amount: $250 |
Consumers Credit Union review |
 | APR range: 5% and up; max varies by state Min credit score: 500 Min loan amount: $7,500 |
SpringboardAuto review |
| Note: APR is used to evaluate the true cost of borrowing money and includes the interest rate. | ||
Online car dealer with financing
| Lender | Minimum requirements | Key facts |
|---|---|---|
 Carvana review | Credit score: None Income: $10,000/yr |
|
| Note: APR is used to evaluate the true cost of borrowing money and includes the interest rate. | ||
Refinance auto loans
| Lender | APR range | Minimum requirements | Rating and review |
|---|---|---|---|
| 3.34% - 9.19% (includes autopay discount) | Min credit score: 660 Min loan amount: $5,000 Max vehicle age/mileage: No restrictions |
LightStream review |
| 4.1% - 24.99% | Min credit score: 560 Min loan amount: $7,500 Max vehicle age/mileage: 7 yrs/No restriction |
Capital One review |
 | 3.49% - 24.99% | Min credit score: 510 Min loan amount: $5,000 Max vehicle age/mileage: 10 yrs/120,000 mi |
Lending Club review |
 | 2.49% - 23.99% | Min credit score: 550 Min loan amount: $5,000 Max vehicle age/mileage: 10 yrs/100,000 mi |
IFS review |
 | 1.84% - 29.4% | Min credit score: 500 Min loan amount: $7,500 Max vehicle age/mileage: 10 yrs/125,000 mi |
MyAutoloan review |
| 7.99% - 21.9% | Min credit score: 525 Min loan amount: $7,500 Max vehicle age/mileage: 8 yrs/100,000 mi |
CarFinance.com review |
 | 1.74% - 18.87% | Min credit score: 525 Min loan amount: $10,000 Max vehicle age/mileage: 10 yrs/150,000 mi |
RateGenius review |
 | 1.99% - 17.99% | Min credit score: 600 Min loan amount: $5,000 Max vehicle age/mileage: 11 yrs/125,000 mi |
Autopay review |
 | 1.9% - 24.9% | Min credit score: 500 Min loan amount: $10,000 Max vehicle age/mileage: 10 yrs/150,000 mi |
OpenRoad Lending review |
 | 3.34% - 11.99% | Min credit score: 600 Min loan amount: $10,000 Max vehicle age/mileage: 10 yrs/100,000 mi |
Clearlane review |
| 2.24% - 21.99% (includes discounts) | Min credit score: 640 Min loan amount: $250 Max vehicle age/mileage: No restrictions |
Consumers Credit Union review |
| Note: APR is used to evaluate the true cost of borrowing money and includes the interest rate. | |||
Refinance auto loans
| Lender | Key Facts | Rating and Review |
|---|---|---|
| APR range: 3.34% - 9.19% (includes autopay discount) Min credit score: 660 Min loan amount: $5,000 |
LightStream review |
| APR range: 4.1% - 24.99% Min credit score: 560 Min loan amount: $7,500 |
Capital One review |
| APR range: 3.49% - 24.99% Min credit score: 510 Min loan amount: $5,000 |
Lending Club review |
| APR range: 2.49% - 23.99% Min credit score: 550 Min loan amount: $5,000 |
IFS review |
| APR range: 1.84% - 29.4% Min credit score: 500 Min loan amount: $7,500 |
MyAutoloan review |
| APR range: 7.99% - 21.9% Min credit score: 525 Min loan amount: $7,500 |
CarFinance.com review |
| APR range: 1.74% - 18.87% Min credit score: 525 Min loan amount: $10,000 |
RateGenius review |
| APR range: 1.99% - 17.99% Min credit score: 600 Min loan amount: $5,000 |
Autopay review |
| APR range: 1.9% - 24.9% Min credit score: 500 Min loan amount: $10,000 |
OpenRoad Lending review |
| APR range: 3.34% - 11.99% Min credit score: 600 Min loan amount: $10,000 |
Clearlane review |
| APR range: 2.24% - 21.99% (includes discounts) Min credit score: 640 Min loan amount: $250 |
Consumers Credit Union review |
| Note: APR is used to evaluate the true cost of borrowing money and includes the interest rate. | ||
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 for an auto loan
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.
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