The best auto loan rates and lenders of March 2024 (2024)

A car is an expensive purchase, but choosing the right lender can save you thousands of dollars in interest charges and fees. Plus, you want your car shopping experience to be easy and transparent so that you're confident about the terms you're getting.

CNBC Select evaluated dozens of auto loan lenders based on their rates and terms, selection of loan options, car-buying experience and other factors. Below are our picks for the best auto loan providers, whether you're shopping for a new vehicle or looking to refinance your existing car loan. (Read more about our methodology below.)

Best auto loans

Best overall

PenFed Auto Loans

  • Annual Percentage Rate (APR)

    Starting at 5.24%

  • Loan purpose

    New vehicles, used vehicles, refinancing

  • Loan amounts

    Starting at $500

  • Terms

    36 to 84 months

  • Credit needed

    Not specified

  • Early payoff penalty

    None

  • Late fee

    20% of the overdue amount, up to $25

Terms apply.

Pros

  • Loan amounts start at $500
  • No early payoff fees
  • Prequalification available
  • Cash incentives through car-buying service
  • Co-borrowers allowed

Cons

  • Credit union membership required
  • Late payments subject to fees

Who's this for? PenFed can be an excellent choice whether you're shopping for a new or used car or want to refinance your auto loan. The credit union offers affordable rates, flexible loan amounts and term lengths and charges no prepayment penalty. Additionally, you can prequalify for a new or used car loan and see estimated terms without a hard credit check.

Standout benefits: While you can secure financing through PenFed for a car loan at the dealer of your choice, you'll find the most appealing deals using the credit union's car buying service, powered by TrueCar. Benefits include members-only cash-back incentives and special loan discounts.

[ Jump to more details ]

Best from a big bank

Capital One Auto Finance

  • Annual Percentage Rate (APR)

    Depends on credit profile

  • Loan purpose

    New vehicles, used vehicles, refinancing

  • Loan amounts

    Starting at $4,000

  • Terms

    36 to 72 months

  • Credit needed

    Not specified

  • Early payoff penalty

    None

  • Late fee

    Depends on the lender

Terms apply.

Pros

  • Open to borrowers with bad credit
  • No early payoff fees
  • Prequalification available
  • Convenient online tools allowing to search for vehicles and check estimated loan terms

Cons

  • Only available at participating dealers
  • You must apply at the dealer to get the final loan terms

Who's this for? When it comes to auto financing, traditional banks can offer competitive rates, especially to existing clients. If securing the most favorable loan terms from a big bank is your goal, you might want to consider Capital One Auto Finance.

Standout benefits: Capital One makes the car buying process convenient. Using the bank's online Auto Navigator tool, you can browse used and new cars from participating dealerships. Prequalification is also available, allowing you to check estimated terms with a soft credit check. Once you prequalify, you'll see monthly payments and rates as you browse car offers.

[ Jump to more details ]

Best for rate shopping

MyAutoLoan

Terms apply.

Pros

  • Open to borrowers with bad credit (minimum 575 score)
  • No early payoff fees
  • Prequalification available
  • Provides multiple offers
  • Fully online application available
  • Co-borrowers and co-signers allowed

Cons

  • Not available in all states
  • Limited customer service

Who's this for? MyAutoloan can be a great option if you want to shop around for car loan rates without filling out applications at multiple lenders.

Standout benefits: MyAutoloan will match you with up to four prequalified loan offers after you fill out a quick form. Prequalification will not hurt your credit — you'll only get a hard inquiry if you choose to apply with one of the lenders you've been matched with.

[ Jump to more details ]

Best for online car shopping

Carvana Auto Loan

  • Annual Percentage Rate (APR)

    Starting at 6.85%

  • Loan purpose

    Used vehicles

  • Loan amounts

    Not specified

  • Terms

    36 to 72 months

  • Credit needed

    Not specified

  • Early payoff penalty

    None

  • Late fee

    $5 after a grace period of 16 days

Terms apply.

Pros

  • Open to borrowers with bad credit
  • No early payoff fees
  • Prequalification available
  • 100% online application process available
  • Allows co-signers

Cons

  • Financing is only available for cars sold through Carvana
  • Not available in all states

Who's this for? Carvana can be a good solution if you want as simple of a car buying process as possible. While many lenders offer an online application, there are usually extra steps you need to take to finish the car buying process, such as visiting the dealership or getting in touch with the lender to finalize financing. Carvana simplifies the process by only offering loans for cars from its inventory, keeping the entire process in-house.

Standout benefits: With Carvana, you can prequalify online without a hard credit check and see personalized estimated terms for each car you browse on Carvana's website. The prequalification offer expires in 45 days as opposed to the 30 days you'd get with most other lenders.

[ Jump to more details ]

Best for used vehicle selection

CarMax Auto Loan

  • Annual Percentage Rate (APR)

    Not disclosed

  • Loan purpose

    Used vehicles

  • Loan amounts

    Starting at $500

  • Terms

    36 to 72 months

  • Credit needed

    Not specified

  • Early payoff penalty

    None

  • Late fee

    Varies by state and contract

Terms apply.

Pros

  • Open to borrowers with bad credit
  • No early payoff fees
  • Prequalification available
  • 100% online application process available
  • Low minimum loan amount
  • Allows co-borrowers

Cons

  • Financing is only available for cars sold at CarMax
  • Not available in all states
  • Prices are non-negotiable

Who's this for? CarMax Auto Finance is a good choice for consumers who are on the market for a used car and want access to a large inventory.

Standout benefits: CarMax's application process is easy and there is no minimum score requirement to qualify. You can use the retailer's prequalification tool to get personalized terms, such as APR and monthly payments, with no impact on your credit.

Further, CarMax offers a Three-Day Payoff program if you find a better loan offer within three days of closing your CarMax loan. For that reason, it pays to shop around for financing if you're going with CarMax — especially since its policy doesn't allow for price negotiation.

[ Jump to more details ]

Best for refinancing

Autopay Car Loan

  • Annual Percentage Rate (APR)

    Starting at 2.99%

  • Loan purpose

    Used and new vehicles, refinancing loans, lease buyout

  • Loan amounts

    $2,500 to $100,000

  • Terms

    24 to 96 months

  • Credit needed

    Not specified

  • Early payoff penalty

    None

  • Late fee

    Varies by lender

Terms apply.

Pros

  • Open to borrowers with bad credit
  • No early payoff fees
  • Prequalification available
  • Wide loan amount range
  • Allows co-applicants

Cons

  • Loan approval may take up to 48 hours
  • Loan funding can take up to two weeks

Who's this for? Autopay is worth considering if you have an existing car loan you're looking to refinance.

Standout benefits: While you can finance a new or used vehicle using Autopay, what stands out is its wide selection of refinancing products. These include both traditional and cash-back financing, as well as lease-buyout financing.

[ Jump to more details ]

More on our top auto loans

PenFed Auto Loans

PenFed, short for Pentagon Federal Union, is one of the largest credit unions by assets. You don't need to be a member to apply for an auto loan but will need to sign up for a PenFed membership to receive your funds. To join, open a PenFed savings/share account with a $5 deposit and maintain a $5 account balance to keep your membership active.

If you're interested in refinancing, the online application process is also easy and transparent. You can also prequalify without any impact on your credit to check how much you can save if you refinance with PenFed. Note, however, that PenFed doesn't refinance its own car loans.

Auto loan purpose

New vehicles, used vehicles, refinancing

Co-borrowers allowed?

Yes

Credit score requirements

Not advertised

[ Return to summary ]

Capital One Auto Finance

Capital One is a full-service bank known for its competitive products, minimal fees and user-friendly digital experience. To get a car loan with Capital One, you need to buy a vehicle through its auto dealership network.

If you're refinancing, you can prequalify without impacting your credit as well. Capital One will only place a hard inquiry on your credit report when you officially apply.

Auto loan purpose

New vehicles, used vehicles, refinancing

Co-borrowers allowed?

Yes

Credit score requirements

Not advertised

Don't miss: Best Capital One credit cards

[ Return to summary ]

MyAutoLoan

MyAutoloan isn't a dealership or financial institution. It's a virtual platform designed to connect car buyers with lenders that best fit their needs — which allows for easy rate shopping. It offers a solid selection of auto loan types, including new and used car loans, lease buyouts and refinancing.

Auto loan purpose

New vehicles, used vehicles, refinancing, private party and lease buyout

Co-borrowers allowed?

Yes

Credit score requirements

575

[ Return to summary ]

Carvana

Carvana is an online used car dealer that offers all the same services you'd expect from a traditional dealership: from buying and selling vehicles to providing financing. Once you find the right car offer, you can schedule a pickup or delivery. At this point, Carvana will pull your credit and you'll get finalized loan terms.

Auto loan purpose

Used vehicles only

Co-borrowers allowed?

Yes, with a third-party loan provider

Credit score requirements

Not advertised

[ Return to summary ]

CarMax

CarMax is a household name in the car-buying industry. The used car dealer is known for its large lots and "no-haggle" policy which aims to simplify the process of purchasing or selling a vehicle. As the largest used-car retailer in the U.S., CarMax also provides financing for the cars it sells.

Auto loan purpose

Used vehicles only

Co-borrowers allowed?

Yes

Credit score requirements

Not advertised, but the dealer states its finance sources accommodate most credit profiles

[ Return to summary ]

Autopay

Similar to myAutoloan, Autopay is an online platform connecting borrowers with financial institutions. This allows Autopay to work with borrowers of all credit profiles and provide competitive rates.

You can prequalify without a hard credit check to get multiple loan options from banks and credit unions. If you choose a lender to move forward with, the financial institution will perform a hard credit inquiry and review your information and documents to finalize the loan terms. Note that the final approval might take up to two days.

Auto loan purpose

Used and new vehicles, auto loan refinancing, lease buyout

Co-borrowers allowed?

Yes

Credit score requirements

Not advertised, but the dealer states it worked with borrowers of all credit profiles

[ Return to summary ]

Compare offers to find the best auto loan

What is the smartest way to finance a car?

When financing a car, you want to make sure you get the best terms your financial and credit situation can get you.

First, remember that the best deals are reserved for those with high credit scores. If your credit could use some work, it might be a good idea to take time to improve your scores before shopping for a car.

Another thing you might want to think about in advance is the down payment. Putting more money down can allow you to lower your monthly payments and interest charges, shorten the loan and even get better rates. The best practice is to put 20% down on a new car or 10% on a used car.

Additionally, make sure to shop around for interest rates. The lower rate you get, the less you'll pay in interest charges over the life of the loan. This can lead to thousands of dollars in savings. Don't worry about the impact multiple hard inquiries will have on your credit: Most credit scoring models will count car financing inquiries made within 14 to 45 days of each other as one.

Further, get the shortest loan term length you can fit into your budget. A longer-term length means more interest paid over the life of the loan. Plus, many financial institutions will give you a higher interest rate to begin with for choosing a longer loan.

FAQs

To get the most favorable financing terms when buying a car, you'll need at least good or excellent credit — a credit score of 670 and greater. That said, it's not impossible to get approved for a car loan even with bad credit as specific requirements vary by lender.

You generally can (and should) negotiate interest rates when shopping for a car loan since the rate the dealership gives you can be higher than what the lender proposed, leaving room for negotiation.

There are a few reasons a financial institution can reject your auto loan application, including a low credit score, a high debt-to-income ratio or not enough verifiable income.

Bottom line

Whether you're buying a new car or refinancing an existing car loan, take the time to shop around for the best loan terms. Take advantage of prequalification tools many lenders offer and don't shy away from applying with multiple lenders. This strategy will help you not only get the car you'll love but save on this big purchase too.

Subscribe to the CNBC Select Newsletter!

Money matters —so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.Sign up here.

Our methodology

To determine the best auto loans, CNBC Select analyzed more than a dozen car loan providers, including banks, dealerships and online marketplaces.

When narrowing down and ranking the best car loans, we focused on the following features:

  • Flexible minimum and maximum loan amounts/terms:Each lender provides more than one financing option that you can customize based on your monthly budget and how long you need to pay back your loan.
  • Prequalification: Each lender offers prequalification which doesn't trigger a hard inquiry and allows you to get estimated loan terms before applying.
  • Online user experience: The lenders on our list make it easy to complete most of or the entire financing process online.
  • Ability to add a co-signer or co-borrower: Each lender offers the option to add a co-signer or co-borrower, which can help you get approved and receive more favorable terms. Note that a co-signer generally agrees to be responsible for your loan without getting any ownership rights for the financed vehicle. A co-borrower (or co-applicant), on the other hand, equally shares ownership of the car and loan.
  • No early payoff penalties:The lenders on our list do not charge borrowers for paying off loans early.
  • Streamlined application process:We considered whether lenders offered same-day approval decisions and a fast online application process.
  • Customer support:Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
  • Loan sizes:The above lenders provide loans in an array of sizes, from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a prequalification process can give you an idea of what your interest rate and monthly payment would be for such an amount.

The rates and fee structures advertised for car loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee your interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, many lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.

Catch up on CNBC Select's in-depth coverage ofcredit cards,bankingandmoney, and follow us onTikTok,Facebook,InstagramandTwitterto stay up to date.

Read more

The best car insurance companies based on cost, coverage and service

Should you take out a personal loan or an auto loan to pay off your car?

There's a special credit score lenders use to approve you for an auto loan—here's how to check it

Should you buy a car now? Here's what consumers need to know to beat high vehicle prices

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

The best auto loan rates and lenders of March 2024 (2024)

FAQs

Will auto loan interest rates go down in 2024? ›

The lowest auto loan rate in 2023 was 6.15 percent for a four-year used car loan in mid-January. Bankrate's expert predicts five-year new car loan rates will reach an average of 7.0 percent and four-year used car loans, 7.5 percent by the end of 2024.

Who is offering the best car loan rates? ›

Compare Car Loan Rates
Top Auto Loan LenderLowest APROur Award
PenFed Credit Union5.24%Best Credit Union Auto Loan
Auto Approve5.24%**Best Auto Refinance Rates
Consumers Credit Union6.54%Excellent Credit Union Auto Loan
Auto Credit ExpressVariesBest Auto Loan for Bad Credit
2 more rows

Which bank is giving the lowest interest rate for a car loan? ›

Car Loan Interest Rates at Leading Banks
Bank NameInterest RatesEMI per Rs. 1 lakh for 7 Years
Corporation Bank7.40% - 7.50%Rs. 1,529 - Rs. 1,534
HDFC Bank8.80% – 10.00%Rs. 1,599 - Rs. 1,660
ICICI Bank8.82% - 12.75%Rs. 1,600 - Rs. 1,806
IDBI Bank8.40% - 9.00%Rs. 1,579 - Rs. 1,609
11 more rows

What interest rate can I get with a 750 credit score for a car? ›

Average car loan interest rates by credit score
Credit scoreAverage APR, new carAverage APR, used car
Superprime: 781-850.5.64%.7.66%.
Prime: 661-780.7.01%.9.73%.
Nonprime: 601-660.9.60%.14.12%.
Subprime: 501-600.12.28%.18.89%.
2 more rows
Apr 19, 2024

Should I wait until 2024 to buy a car? ›

If you're looking to save money, waiting until 2024 might be a more financially savvy decision. Exploring the benefits of a used car buying can reveal substantial savings and value for money. Another advantage of waiting is the potential for improved features and upgrades.

Will car rates go down in 2024? ›

As recently as December 2023, the futures market gave March 2024 rate cuts a 77% probability of occurring. Even Fed officials themselves are predicting lower rates soon, with 17 of 19 projecting that the funds rate will be lower at the end of 2024 than it is now.

What is a good APR for a 72 month car loan? ›

An interest rate under 5% is a great rate for a 72-month auto loan. However, the best loan offers are only available to borrowers who have the best credit scores and payment histories.

What interest rate can I get with a 800 credit score car loan? ›

Average auto loan interest rates by credit score
Personal FICO scoreAverage interest rate for new car loansAverage interest rate for used car loans
781 to 8505.64%7.66%
661 to 7807.01%9.73%
601 to 6609.60%14.12%
501 to 60012.28%18.89%
1 more row
Mar 4, 2024

Are interest rates going down in 2024? ›

But the Fed has indicated that it's likely done hiking rates and could start cutting in 2024. Once the Fed cuts rates, mortgage rates should fall even further.

Which is the best bank to get a car loan? ›

Summary: Best Car Loan Rates Of May 2024
CompanyForbes Advisor RatingMinimum rate
PenFed Credit Union4.7Starting at 4.74%
Consumers Credit Union4.2Starting at 6.54% (with autopay)
Digital Federal Credit Union (DCU)3.7Starting at 6.74% (with autopay)
USAA3.7Starting at 5.59% (with autopay)
3 more rows
May 1, 2024

Which finance company is best for a car loan? ›

List of 10 best banks offering affordable car loans in India 2024
BankInterest rate
Axis Bank9.2%
Yes Bank9.7%
ICICI Bank10.20% for 12-35 months tenure and 9.10% for 36-96 months tenure 11.25% for used car
HDFC Bank8.97%
6 more rows
Feb 29, 2024

Can you negotiate auto loan rate with bank? ›

Yes, just like the price of the vehicle, the interest rate is negotiable.

What are car interest rates in 2024? ›

Average Auto Loan Rates in March 2024
Credit ScoreNew Car LoanRefinance Car Loan
750 or higher12.77%7.89%
700-74912.65%8.98%
600-69917.84%10.09%
451-59922.56%12.76%
1 more row

Who has the lowest car loan rates right now? ›

Compare Best Auto Loan Lenders
CompanyUsed APR RangeUsed Loan Terms
PenFed Best Overall6.49%–17.99%3–7 years
AUTOPAY Best for Bad Credit/Low RatesAs low as 5.69%2–8 years
Consumers Credit Union Best Credit UnionAs low as 6.84%36–84 months
LendingTree Best for RefinanceAs low as 5.99% (Refinance)36–72 months (Refinance)
3 more rows

What is a bad APR for a car? ›

People with excellent credit qualified for rates around 5.64 percent, while people with bad credit had an average new car rate of 14.78 percent. Rates for used cars were higher — 11.93 percent across credit scores. And the average rate for bad credit was a sky-high 21.55 percent.

What will interest rates drop to in 2024? ›

MBA: Rates Will Decline to 6.4% In its April Mortgage Finance Forecast, the Mortgage Bankers Association predicts that mortgage rates will fall from 6.8% in the first quarter of 2024 to 6.4% by the fourth quarter. The industry group expects rates will fall below the 6% threshold in the fourth quarter of 2025.

Is 2024 a good year to buy a car? ›

Experts say that 2024 will be the best year to purchase a new car since 2019. As interest rates slowly drop throughout the remainder of the year, payments will become more manageable. Don't overlook manufacturer rate promotions, as they can save you thousands of dollars.

What is a good car payment in 2024? ›

Average monthly car payments for new, new leased and used vehicles jump year over year
New vehiclesNew leased vehicles
781 to 850 (super prime)$703$587
661 to 780 (prime)$747$611
601 to 660 (nonprime)$782$631
501 to 600 (subprime)$774$639
2 more rows

Where will interest rates be in 2025? ›

The average 30-year fixed mortgage rate as of Thursday was 6.99%. By the final quarter of 2025, Fannie Mae expects that to slide to 6.0%.

Top Articles
Latest Posts
Article information

Author: Prof. An Powlowski

Last Updated:

Views: 6183

Rating: 4.3 / 5 (64 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Prof. An Powlowski

Birthday: 1992-09-29

Address: Apt. 994 8891 Orval Hill, Brittnyburgh, AZ 41023-0398

Phone: +26417467956738

Job: District Marketing Strategist

Hobby: Embroidery, Bodybuilding, Motor sports, Amateur radio, Wood carving, Whittling, Air sports

Introduction: My name is Prof. An Powlowski, I am a charming, helpful, attractive, good, graceful, thoughtful, vast person who loves writing and wants to share my knowledge and understanding with you.