Best Car Loan Rates

Also known as Pentagon Federal Credit Union, PenFed has been providing financial services since its start in 1935, when it originally served members of the government and military only. These days, it's America's second-largest credit union, with 2.8 million members worldwide, and anyone is welcome to join.

Pricing

PenFed Credit Union offers some of the lowest rates available. At PenFed, rates for 36-month refinance loans start as low as 4.89%. Deep discounts are available for members who use the credit union's car buying service, with rates starting as low as 4.89% annual percentage rate (APR) for a new car and 5.54% APR for a used vehicle.

Eligibility

You'll have to become a member of the credit union, but the requirements to join are fairly easy to meet. Car loans from PenFed start as low as $500 and move up to $150,000, a wide range that beats out many of the lenders we surveyed.

The downside to PenFed is that the most flexible loan amounts are only offered on the shortest terms. For example, new car loans of 61 to 72 months have a minimum loan amount of $15,000, while new car loans of 73 to 84 months have a minimum of $20,000. As with most lenders, you'll need excellent credit to get the lowest rates.

*The PenFed Car Buying Service rebate of $350 will apply to new and used purchase loan applications with a qualifying vehicle purchase sourced through the PenFed Car Buying Service. Applications and Car Buying Service dealership match must be received during the promotional period, between 2/1/2023 and 4/30/2023. Dealer originated loans and refinance loans are not eligible for this promotion. Loan must be currently active and have at least 2 payments posted in order to qualify for the rebate. The $350 rebate will be deposited to the member share savings account within 60 days of receiving the second payment. PenFed may discontinue or change the promotion at any time. Other restrictions may apply. 

LightStream is a division of Truist Bank, which got its start in 1891 as Commercial Travelers' Savings Bank in Atlanta, Georgia, and later became known as Sun Trust. At Lightstream, you'll find a very wide range of consumer loans for everything from horses to homes.

Pricing

LightStream stands out for its online lending process. Borrowers can apply online, e-sign the loan agreement, and receive funds via direct deposit as soon as the same day.

LightStream also offers a remarkably wide range of auto loan options, including new and used dealer purchases, refinancing, lease buyouts, and classic cars. It even offers unsecured loans for those with excellent credit.

Rates from the lender start at 8.99%, which includes a 0.5%-point discount for autopay. The maximum APR on a LightStream car loan is 16.94%.

Eligibility

The downside is that the lowest rates from LightStream are only available to borrowers with excellent credit. That's not unusual, but it means that this isn't the best lender for those with a damaged credit profile. LightStream doesn't publish its exact credit requirements, but it generally defines excellent credit as having a credit history of several years with various account types, an excellent payment history, a proven ability to save, and stable and sufficient income.

Bank of America (BofA) is a large financial institution offering a number of auto loan options, including new, used, refinance, lease buyout, and private party loans. The bank has been serving customers since 1904 in San Francisco, when it was known as Bank of Italy. Bank of America now operates out of Charlotte, North Carolina, with more than 67 million consumer and small business clients in addition to its global and business customers.

Pricing

For the most creditworthy borrowers, APRs start at 5.79% for new vehicles. Used vehicle loans start at 5.99% APR, while refinances start at 6.79% APR. Customers of the bank who are Preferred Rewards members can get up to a 0.5% discount on these rates.

BofA provides a no-fee online application that it claims can offer a decision within 60 seconds. You can choose from a 48-, 60-, or 72-month term online, but there are additional options ranging from 12 to 75 months if you complete the application process at a branch or over the phone.

Eligibility

The main disadvantage to getting an auto loan through Bank of America is its restrictions on which vehicles it will finance. It won't provide loans for vehicles more than 10 years old, those with 125,000 miles or more, or vehicles worth less than $6,000. It also won't provide a loan amount of less than $7,500.

Anyone is welcome to join Consumers Credit Union, one of the largest credit unions in Illinois, with 178,000 members and more than $2.8 billion in assets. The organization began as a trading cooperative and was chartered as a credit union in 1930 in Waukegan, Illinois.

Pricing

Consumers Credit Union offers auto loan rates to its members as low as 5.24% for new car loans up to 60 months. Like other credit unions, it requires membership, but it's easy to join. You can become a member by paying a one-time $5 membership fee. There are no geographic or employer requirements.

Eligibility

CCU doesn't have a minimum or maximum loan amount. Your loan is approved based on your credit score, credit report, and vehicle information. There's also no minimum loan term—you submit a request based on what you need.

Generally, borrowers with excellent credit will qualify for the lowest rates from Consumers Credit Union. But even members who have less than excellent credit have access to discounts. There's a 0.25% discount available for those who autopay from a CCU account or outside financial institution.

Chase Auto is the car financing arm of J.P. Morgan Chase & Co., the largest bank by assets in the U.S. It allows users to shop for, finance, and manage their vehicle all from one account.

Pricing

Although Chase Auto doesn’t list rates online, it has a calculator that will allow you to get an idea of your potential rate. Chase also offers generous loan amounts ranging from $4,000 to $600,000 and 12 to 84 months flexible repayment terms.

Chase Auto doesn’t require you to make a down payment for a loan, though putting money down can reduce the total amount you need to borrow and your monthly payments. You can also get a 0.25% interest rate discount as a Chase Private Client, which requires you pay a $35 monthly fee or have a minimum average daily balance of $150,000 in qualifying personal, business, and investment accounts or a Chase Platinum Business Checking account.

Eligibility

Financing a car with Chase Auto requires you to choose a dealer in the Chase dealer network. Chase also offers an Auto Preferred program that connects you with a dedicated concierge at a local dealership who can help you find the best discounts and financing options. Unfortunately, if you switch dealers at any point, you will need to start your loan application all over again.

Chase also offers a car-management service called MyCar to all of its customers regardless of whether or not they have a car loan with the bank. This service makes it easy to keep track of maintenance schedules, estimated market value, safety recalls, and more for any car you own.

myAutoloan is a privately held financing marketplace operated by Horizon Digital Finance, LLC, since 2003. The platform allows you to compare multiple offers from lenders based on your credit profile. This type of company can help you cast a wide net and get the best offer available. It offers new, used, refinance, private party, and lease buyout loans.

Pricing

Speed is one of myAutoloan's benefits. Its online form takes just a couple of minutes to fill out and, once submitted, matches you with up to four lender offers. After you choose a lender, you can receive an online certificate or a check within as little as 24 hours.

Eligibility

Requirements in myAutoloan's market vary by lender, but they say they have lenders who work with borrowers with lower scores.

AUTOPAY is a refinance broker that specializes in car loans. With more than 700,000 customers served, AUTOPAY offers rates from a variety of banks and credit unions to choose from.

Pricing

While AUTOPAY's rates start at 2.99%, only those with excellent credit will qualify. According to AUTOPAY, they can, on average, cut your rate in half on a refinance.

AUTOPAY offers more refinance options than many lenders. In addition to traditional auto refinancing, borrowers can choose cash-back refinancing and lease payoff refinancing.

Eligibility

AUTOPAY is a marketplace that makes it easy to shop around for the best deal. It caters to individuals who are rebuilding credit or improving their credit.

Carvana is a completely online used car dealer that also provides direct financing. It makes it possible to secure financing, shop for a vehicle, and get a used vehicle delivered without leaving your house. With Carvana, you can shop for a car from your computer or phone and get personalized financing as you search.

Pricing

As with most lenders, borrowers with the best credit get Carvana's most competitive rates. Carvana does not advertise its rates or publish a table, but you can estimate your monthly payment with an online calculator. That said, even the calculator does not reveal the rate it is using. You must prequalify to know what your interest rate will be.

Eligibility

There is no credit score minimum for Carvana's financing program, making this an attractive option for fair credit borrowers. However, you must have an income of at least $4,000 annually and no active bankruptcies.