Compare Best Auto Loans, Rates and Lenders
What to know about auto loans before you apply.
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Auto loans are available for buying new and used cars, buying out car leases and refinancing current auto loans. But not every lender offers every kind of auto loan or serves every level of credit.
Below you can learn about the types of auto financing available and compare lenders to find the best car loan rates for purchasing a new or used vehicle. We also provide basic information about applying for an auto loan.
Compare Best Auto Loans, Rates and Lenders
Lender | NerdWallet Rating | Est. APR | Loan amount | Min. credit score | Learn more |
|---|---|---|---|---|---|
4.0 /5 | 6.18-29.99% | $8,000-$100,000 | 575 | Learn moreon MyAutoloan's website on MyAutoloan's website | |
4.5 /5 | 6.43-29.99% | $8,000-$100,000 | 575 | Learn moreon MyAutoloan's website on MyAutoloan's website | |
4.5 /5 | 8.49-16.94% | $5,000-$100,000 | 660 | Learn moreon LightStream's website on LightStream's website | |
5.0 /5 | 8.49-16.94% | $5,000-$100,000 | 660 | Learn moreon LightStream's website on LightStream's website | |
 Consumers Credit Union - New car purchase loan Learn moreon Consumers Credit Union's website on Consumers Credit Union's website | 4.0 /5 | 5.94-17.54% | $7,500-No max. | 620 | Learn moreon Consumers Credit Union's website on Consumers Credit Union's website |
Consumers Credit Union - Used car purchase loan Learn moreon Consumers Credit Union's website on Consumers Credit Union's website | 4.0 /5 | 6.19-18.54% | $7,500-$500,000 | 620 | Learn moreon Consumers Credit Union's website on Consumers Credit Union's website |
Our pick for
New car loan aggregators
Aggregators connect prospective borrowers with a network of auto lenders, usually resulting in more than one loan offer. We evaluate them using different criteria than direct lenders.
MyAutoloan - New car purchase loan
6.18-29.99%
$8,000-$100,000
575
- 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.
- Not available in Hawaii or Alaska.
- Customer service not available on weekends.
- Doesn’t provide Spanish version of website.
- Minimum annual gross income: $26,100.
- Maximum debt-to-income ratio: Not provided
- Bankruptcy-related restrictions: Must be discharged or dismissed.
Our pick for
Used car loan aggregators
Aggregators connect prospective borrowers with a network of auto lenders, usually resulting in more than one loan offer. We evaluate them using different criteria than direct lenders.
MyAutoloan - Used car purchase loan
6.43-29.99%
$8,000-$100,000
575
- 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.
- Not available in Hawaii or Alaska.
- Customer service not available on weekends.
- Doesn’t provide Spanish version of website.
- 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.
Our pick for
New car direct lenders
Direct and indirect lenders are banks, credit unions and other companies that make loans directly to a borrower or through a car dealership. We evaluate them using different criteria than aggregators.
LightStream - New car purchase loan
8.49-16.94%
$5,000-$100,000
660
- 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.
- Doesn’t offer pre-qualification with a soft credit check.
- Doesn’t provide a Spanish version of website.
- 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.
Consumers Credit Union - New car purchase loan
5.94-17.54%
$7,500-No max.
620
- 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 0.25 percentage point rate discount with automatic payment. Rate shown reflects this discount.
- Provides online car-buying service with discounted pricing.
- Allows co-signers.
- 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.
- 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.
Alliant Credit Union – New car purchase loan
6.00-23.65%
$4,000-No max.
Did not disclose
- Offers rate discount with automatic payment.
- Provides online car-buying service with discounted pricing and rates.
- Application process can be completed 100% online.
- Does not offer pre-qualification with a soft credit check.
- Credit union membership required to get a loan.
- Minimum annual gross income: None.
- Maximum debt-to-income ratio: 60%.
- Bankruptcy restrictions: Yes, but did not disclose.
- Maximum loan to value ratio: 140%.
Chase Auto - New car purchase loan
N/A
$4,000-Max. not disclosed
Did not disclose
- Offers pre-qualification with a soft credit check.
- Typically provides a loan approval decision within 2 to 3 hours.
- Offers rate discount for Chase Private Clients.
- Has more than 12,000 dealer partnerships, with dealers in all 50 states.
- The application process is 100% online (with the exception of visiting the dealer to complete the transaction).
- Must purchase your vehicle at a Chase network dealership.
- If you change dealerships after completing the loan application, a new application must be submitted.
- Does not allow co-signers.
- Rate discount available only to Chase Private Clients based on deposit account balances.
- Minimum annual gross income: None.
- Maximum debt-to-income ratio: Did not disclose.
- Bankruptcy restrictions: Has bankruptcy restrictions but did not disclose details.
- Maximum loan-to-value ratio: 140%.
Digital Federal Credit Union - New car purchase loan
6.49-15.24%
$2,500-$500,000
600
- Application process can be 100% online.
- Has a 24-hour access consumer loan call center.
- Offers two opportunities for discounts on already low rates.
- Provides same-day or instant loan approval.
- Allows co-signers and co-borrowers.
- Submitting the main online auto loan application results in a hard credit inquiry.
- Credit union membership is required, but it can be set up after applying for a loan.
- Social Security number required with initial application.
- Minimum annual gross income: $6,000.
- Maximum debt-to-income ratio: 60%.
- Bankruptcy restrictions: There is a 12-24 month waiting period after the bankruptcy depending on credit score.
PenFed Credit Union - New car purchase loan
5.94-17.99%
$500-$100,000
Did not disclose
- Provides up to six pre-qualified offers with rate and payment amount for various terms using a soft credit check.
- Pre-qualified offers stay the same through preapproval and approval (unless the selected vehicle changes).
- Offers online car buying service with possible rate reductions or cash bonus offers.
- Application process can be 100% online.
- Customer service available seven days a week.
- Credit union membership required to get a loan.
- Does not offer rate discounts for automatic payments.
- Social Security number required with initial application.
- Minimum annual gross income: No minimum.
- Maximum debt-to-income ratio: Relies on PTI (payment to income) ratio for approvals, but did not disclose ratio.
- Bankruptcy restrictions: Applicants with bankruptcy in the past two years will not qualify.
Navy Federal Credit Union - New car purchase loan
4.54-18.00%
$4,996-No max.
Did not disclose
- Offers a rate discount for active-duty and retired military members.
- Available in all states.
- Has 24-hour member service.
- Fully online application available.
- Co-signers and co-borrowers allowed.
- No rate discount for automatic payments.
- Doesn’t offer pre-qualification with a soft credit check.
- No choice of payment date.
- Minimum annual gross income: None.
- Maximum debt-to-income ratio: Did not disclose.
- Bankruptcy restrictions: None.
Our pick for
Used car direct lenders
Direct and indirect lenders are banks, credit unions and other companies that make loans directly to a borrower or through a car dealership. We evaluate them using different criteria than aggregators.
LightStream - Used car purchase loan
8.49-16.94%
$5,000-$100,000
660
- 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.
- Doesn’t offer pre-qualification with a soft credit check.
- Doesn’t provide a Spanish version of website.
- 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.
Consumers Credit Union - Used car purchase loan
6.19-18.54%
$7,500-$500,000
620
- No vehicle restrictions.
- Offers rate estimates through its website using a soft credit check.
- Offers 0.25 percentage point rate discount with automatic payment. Rate shown reflects this discount.
- Provides online car-buying service with discounted pricing.
- Allows co-signers.
- 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.
- 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%.
Carvana - Used car purchase loan
7.90-27.90%
$1,000-$100,000
None
- Offers pre-qualification with a soft credit check.
- Customer service available seven days a week.
- Borrowers can change their payment due date via the Carvana app.
- Application process 100% online including document upload.
- Minimum loan amount is lower than other lenders.
- Maximum APR possible is higher than many other lenders.
- Only finances vehicles sold through Carvana.
- Not available in Alaska or Hawaii.
- Minimum annual gross income: $4,000.
- Maximum debt-to-income ratio: Did not disclose.
- Bankruptcy-related restrictions: No active bankruptcies.
- Maximum mileage: Did not disclose.
- Maximum loan to value ratio: Did not disclose.
CarMax - Used car purchase loan
6.45-28.00%
$500-$100,000
None
- Offers a three-day window to replace CarMax financing with a better loan offer.
- Application process can be 100% online including document upload.
- Minimum loan amount is lower than other lenders.
- CarMax Auto Finance borrowers can select payment due date and manage their loan through the MyCarMax online platform.
- Maximum APR is higher than many other lenders
- Only finances vehicles sold through CarMax.
- Does not allow co-signers, only co-borrowers.
- Minimum annual gross income: Depends on CarMax finance source and application details.
- Maximum debt-to-income ratio: Depends on CarMax finance source and application details.
- Bankruptcy-related restrictions: No active bankruptcies.
- Maximum mileage: CarMax finances any vehicle in its inventory. CarMax doesn’t have a maximum mileage restriction for cars they purchase or acquire by trade-in, but high-mileage vehicles may be sold at auction and not become part of CarMax inventory.
- Maximum loan to value ratio: None.
Alliant Credit Union – Used car purchase loan
6.62-26.40%
$4,000-$1,000,000
Did not disclose
- Offers rate discount with automatic payment.
- Provides online car-buying service with discounted pricing and rates.
- No restrictions on vehicle age or mileage.
- Does not offer pre-qualification with a soft credit check.
- Credit union membership required to get a loan.
- Minimum annual gross income: None.
- Maximum debt-to-income ratio: 60%.
- Bankruptcy restrictions: Yes, but did not disclose.
- Maximum mileage: None.
- Maximum loan to value ratio: 140%.
Chase Auto - Used car purchase loan
N/A
$4,000-Max. not disclosed
Did not disclose
- Offers pre-qualification with a soft credit check.
- Typically provides a loan approval decision within 2 to 3 hours.
- Offers rate discount for Chase Private Clients.
- Has more than 12,000 dealer partnerships, with dealers in all 50 states.
- The application process is 100% online (with the exception of visiting the dealer to complete the transaction).
- Must purchase your vehicle at a Chase network dealership.
- If you change dealerships after completing the loan application, a new application must be submitted.
- Does not allow co-signers.
- Rate discount available only to Chase Private Clients based on deposit account balances.
- Minimum annual gross income: None.
- Maximum debt-to-income ratio: Did not disclose.
- Bankruptcy restrictions: Has bankruptcy restrictions but did not disclose details.
- Maximum mileage: 120,000 miles.
- Maximum loan-to-value ratio: 140%.
Digital Federal Credit Union - Used car purchase loan
6.49-15.24%
$2,500-$500,000
600
- Maximum vehicle mileage higher than other lenders.
- High maximum vehicle age (will finance antique and vintage vehicles).
- Has a 24-hour access consumer loan call center.
- Finances vehicles purchased from private parties.
- Offers two opportunities for discounts on already low rates.
- Allows co-signers and co-borrowers.
- Submitting the main online auto loan application results in a hard credit inquiry.
- Credit union membership is required, but it can be set up after applying for a loan.
- Social Security number required with initial application.
- Minimum annual gross income: $6,000.
- Maximum debt-to-income ratio: 60%.
- Bankruptcy restrictions: There is a 12-24 month waiting period after the bankruptcy depending on credit score.
- Maximum mileage: 250,000 miles.
- Maximum loan to value ratio: 130%.
PenFed Credit Union - Used car purchase loan
6.79-17.99%
$500-$100,000
Did not disclose
- Provides up to six pre-qualified offers with rate and payment amount for various terms using a soft credit check.
- Pre-qualified offers stay the same through preapproval and approval (unless the selected vehicle changes).
- Offers online car buying service with possible rate reductions or cash bonus offers.
- Application process can be 100% online.
- Customer service available seven days a week.
- Minimum loan amount is lower than other lenders.
- Credit union membership is required, but it can be set up after applying for a loan.
- Does not offer rate discounts for automatic payments.
- Social Security number required with initial application.
- Minimum annual gross income: No minimum.
- Maximum debt-to-income ratio: Relies on PTI (payment to income) ratio for approvals, but did not disclose ratio.
- Bankruptcy restrictions: Applicants with bankruptcy in the past two years will not qualify.
- Maximum mileage: 125,000 miles.
- Maximum loan-to-value ratio: 125%.
Navy Federal Credit Union - Used car purchase loan
5.44-18.00%
$250-No max.
Did not disclose
- Offers a rate discount for active-duty and retired military members.
- Available in all states.
- Has 24-hour member service.
- Fully online application available.
- Co-signers and co-borrowers allowed.
- No rate discount for automatic payments.
- Doesn’t offer pre-qualification with a soft credit check.
- No choice of payment date.
- Minimum annual gross income: None.
- Maximum debt-to-income ratio: Did not disclose.
- Bankruptcy restrictions: None.
- Maximum mileage: None.
- Maximum loan-to-value ratio: Did not disclose.
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.
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. | 5.07%. | 7.09%. |
Prime: 661-780. | 6.44%. | 9.06%. |
Nonprime: 601-660. | 8.99%. | 13.49%. |
Subprime: 501-600. | 11.72%. | 18.49%. |
Deep subprime: 300-500. | 14.18%. | 21.38%. |
Source: Experian Information Solutions. | ||
>> MORE: How to get a car loan
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.
>> MORE: Auto loan calculator
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 August 30, 2023
Methodology
NerdWallet's review process surveys companies that offer any combination of new car purchase loans, used car purchase loans, auto refinance loans (traditional and/or cash-out) and lease buyout loans. These companies include direct lenders and aggregators; the latter group doesn't have in-house loan products but matches borrowers to third-party lenders within a network. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
Our survey for direct lenders has different questions than the survey for aggregators, but each includes more than 60 data points. NerdWallet independently confirms product details and, when necessary, follows up with company representatives. At least two writers and an editor verify the facts for every lender review to ensure data are accurate.
To receive a star rating, a provider must respond to NerdWallet’s annual auto loans survey. Star ratings are then assessed from poor (one star) to excellent (five stars).
For more details about the categories considered and our processes, read our full methodology for rating direct lenders and our full methodology for rating aggregators.
NerdWallet's Compare Best Auto Loans, Rates and Lenders
- MyAutoloan - New car purchase loan: Best for New car loan aggregators
- MyAutoloan - Used car purchase loan: Best for Used car loan aggregators
- LightStream - New car purchase loan: Best for New car direct lenders
- LightStream - Used car purchase loan: Best for Used car direct lenders
- Consumers Credit Union - New car purchase loan: Best for New car direct lenders
- Consumers Credit Union - Used car purchase loan: Best for Used car direct lenders
- Carvana - Used car purchase loan: Best for Used car direct lenders
- CarMax - Used car purchase loan: Best for Used car direct lenders
- Alliant Credit Union – New car purchase loan: Best for New car direct lenders
- Alliant Credit Union – Used car purchase loan: Best for Used car direct lenders
- Chase Auto - New car purchase loan: Best for New car direct lenders
- Chase Auto - Used car purchase loan: Best for Used car direct lenders
- Digital Federal Credit Union - New car purchase loan: Best for New car direct lenders
- Digital Federal Credit Union - Used car purchase loan: Best for Used car direct lenders
- PenFed Credit Union - Used car purchase loan: Best for Used car direct lenders
- PenFed Credit Union - New car purchase loan: Best for New car direct lenders
- Navy Federal Credit Union - New car purchase loan: Best for New car direct lenders
- Navy Federal Credit Union - Used car purchase loan: Best for Used car direct lenders
