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Best Auto Loans for March 2024

Review Updated
David Chang, ChFC®, CLU®
By: David Chang, ChFC®, CLU®

Our Loans Expert

Nathan Alderman
Check IconFact Checked Nathan Alderman
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

A car is one of the most expensive things you can purchase. Getting a good interest rate can help you save hundreds or thousands dollars. The best auto loans offer low interest rates, have an easy application process, and come with flexible financing terms for different types of vehicles. We have researched the auto loan industry to find our picks for the best auto loans.

Alliant Federal Credit Union Auto Loan

Logo for Alliant Federal Credit Union Auto Loan
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Minimum Credit Score
Not disclosed
Loan Amounts
$1,000 - $50,000
APR Range
6.00% - 9.62%
Term Length
Up to 84 months

Alliant Credit Union offers low rates for loans up to 84 months for new or used cars. There are no prepayment penalties and you can get a 0.50% rate discount when you use the Alliant Car Buying Service powered by TrueCar. Alliant states that members save an average of $2,019 off MSRP by using the service.

Alliant also offers the Alliant Vehicle Service Program, which can save you an average of 25% on vehicle maintenance and repairs with thousands of certified service providers nationwide. Approvals are generally the same day, and after signing documents online, the funds are sent to you within two business days.

Alliant offers other perks, such as a debt protection plan in the event of death, disability, or involuntary unemployment, and a loan assistance program if you are under financial hardship.

  • Very competitive interest rates
  • No origination fees or prepayment penalties
  • Same day approval and same day funding in some cases
  • Discount for autopay
  • Borrowers must be members

Consumers Credit Union Auto Loan

Logo for Consumers Credit Union Auto Loan
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Minimum Credit Score
Not disclosed
Loan Amounts
Up to $100,000
APR Range
5.24% - 6.34%
Term Length
0 - 84 months

Consumers Credit Union offers some of the lowest rates in the industry, as well as flexible terms. For cars six years old or newer, rates rise for a loan term of 61 to 72 months and are the highest for a loan term of 73 to 84 months. It will finance up to 100% of the purchase price for qualified buyers.

Members who arrange electronic automatic payments from their CCU Account, or from another institution, receive a 0.25% interest rate reduction on their auto loan. You can submit an application online and a CCU representative will contact you to discuss financing options.

Consumers Credit Union offers perks such as GAP coverage program, you can skip your loan payment two times per year without penalty, and there is a 10-day grace period before you are charged with a late fee.

  • Loan amounts up to $100,000
  • No prepayment penalties
  • Discount for autopay
  • High minimum interest rate compared to competitors
  • Minimum requirements not disclosed
Award Icon 2024 Award Winner
Logo for LightStream
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Minimum Credit Score
Good credit
Loan Amounts
$5,000 - $100,000
APR Range
7.49%-25.49% (w/ AutoPay)*
Term Length
24-144 months (varies by loan purpose)

LightStream offers competitive rates on personal loans, offers flexible terms, and has high loan limits. Also, LightStream doesn't charge fees. Lightstream offers Lending Uncomplicated, where you don't need an appraisal on a car and there are no restrictions on age or mileage.

It has a seamless online application process and because it doesn't deal directly with the dealer, you can get your loan funded as soon as the day you apply. The catch is that LightStream has stricter borrowing requirements than some other lenders and there are other financial institutions with more competitive APRs.

  • Competitive APRs
  • No fees or prepayment penalty
  • Same-day funding available
  • High maximum loan amount
  • Better APRs available
  • No pre-approval for personal loans

myAutoLoan

Logo for myAutoLoan
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Minimum Credit Score
600
Loan Amounts
$8,000 and up (based on lender)
APR Range
6.18% and up
Term Length
0 - 84 months

myAutoLoan is a loan platform that compares different types of car loans. After filling out a two-minute form, the platform matches buyers up to at least four different lenders.

myAutoLoan offers a lease buyout loan to buy your currently leased car. You can use the loan to buy your car at the end or before the end of your lease. Applications are completely obligation-free and lease buyout options are flexible.

It offers terms up to 84 months for the different types of loans. After approval, you can get your check within 24 hours for your car. Because myAutoLoan compares different lenders, it can help individuals with low credit scores find a suitable lender.

  • Competitive APR and quickly compare up to four loan offers
  • Fast application and funding process
  • No fees to apply
  • Prequalification available
  • Accepts lower credit score
  • Vehicle restrictions, such as model and mileage, based on lender
  • All vehicles have to be 10 years or newer
  • Not available in all states
  • High minimum loan amount of $8,000

AutoPay

Logo for AutoPay
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Minimum Credit Score
560
Loan Amounts
$2,500 - $100,000
APR Range
2.99% and higher
Term Length
24 - 96 months

AutoPay is a marketplace of lenders where you can choose the lowest rate available for a new auto loan or to refinance an existing car. AutoPay uses an applicant-to-lender matching system to link buyers with the best rate and lenders with qualified buyers.

Lenders offer loan amounts from $2,500 to $100,000 and terms from 24 months to 96 months for qualified applicants. You can apply for a loan that will not negatively affect your credit score. Once you choose an offer to submit for lender approval, AutoPay runs a hard credit check..

AutoPay offers the lowest APR in the industry. The 2.99% is for those with the best credit score, but AutoPay has access to a wide variety of lenders and has solutions for all credit profiles. For those looking to refinance, AutoPay states that it can help drivers save an average of $1,206 annually and lower their APR by 50%.

  • No origination fees or prepayment penalties
  • Allow joint applications
  • Offer autopay discounts
  • May charge an origination fee

Carvana

Logo for Carvana
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Minimum Credit Score
Not specified
Loan Amounts
Not specified
APR Range
6.85% - 16.46%
Term Length
36-72 months

Carvana is an online car-buying service. It offers financing only for used Carvana cars. Carvana works with those who have bad credit as long as they are 18 or older, make at least $4,000 per year, and have no active bankruptcies. After you prequalify and get your terms, your rates won't change unless your information changes or your terms expire after 45 days.

Carvana advertises that its online auto loan application takes just two minutes to complete. After applying for a loan, you'll receive real, personalized terms based on the information you provide. Carvana requires a down payment.

  • Good credit not required
  • No prepayment penalty
  • Can finance and purchase a car from one location
  • Only available in certain states
  • Minimum requirements not specified
  • Carvana Financing can only be used for vehicles sold on Carvana.com
  • Down payment required

Navy Federal Auto

Logo for Navy Federal Auto
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Minimum Credit Score
Undisclosed
Loan Amounts
$250 and up
APR Range
as low as 4.54% for new vehicles
Term Length
36-96 months

Navy Federal is known for its high customer service ratings. According to the 2022 J.D. Power U.S. Consumer Financing Satisfaction Study, USAA would be ranked No. 1, with a score of 908 out of 1,000. It doesn't qualify for formal inclusion because loan companies must be able to offer loans to all consumers. The industry average is 849.

Navy Federal provides highly competitive rates in the market and a comprehensive Car Buying Center that encompasses all your vehicle needs. From financing and purchasing to researching, protecting, and enjoying your next car, everything is conveniently available in one place. Additionally, the exclusive member benefits from TrueCar, CARFAX, Liberty Mutual, and SiriusXM enable you to enjoy substantial savings.

Navy Federal has no fees and a wide variety of loan options. You can borrow up to $500,000 with a repayment term of 36 to 96 months. This means you can find a term that fits your budget and needs.

  • Loan amounts as low as $250
  • Relatively low interest rates
  • Cosigners allowed
  • Flexible terms
  • Maximum loan amount is $500,000
  • Vehicle restrictions
  • Loan disbursed via mail or at a branch

USAA Auto Loans

Logo for USAA Auto Loans
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Minimum Credit Score
Loan Amounts
$5,000-$500,000
APR Range
5.69% and up
Term Length
12-84 months

This personal loan is a good fit for eligible members who need a personal loan up to $100,000 quickly without application or early repayment fees. The maximum limit for a USAA auto loan is $500,000, one of the highest we have found.

USAA has a wide range of financial products for its members. For those looking to get an auto loan, USAA’s top-ranked auto insurance is a good complement. USAA also offers flexible payment options, loans for adapted vehicles, and the ability to take your car overseas when you deploy, move, or travel.

In addition, USAA is known for its high customer service ratings. According to the 2022 J.D. Power U.S. Consumer Financing Satisfaction Study, USAA would be ranked No. 2, with a score of 896 out of 1,000. It doesn't qualify for formal inclusion because loan companies must be able to offer loans to all consumers. The industry average is 849.

  • Customer service
  • Flexible policies
  • High maximum loan amount
  • Only available to military members and their families

What you need to know about auto loans

Buying a car can be complex. The first step is determining how much you can afford and how much you want to borrow. It comes down to your budget, preferences, and the total cost of purchasing a car. It is important to balance your needs and wants so you don't borrow more than you can afford.

The annual percentage rate (APR) tells you the annual cost of your auto loan. Your loan rate is expressed as a percentage, like an interest rate. It generally includes all the costs associated with your loan, such as recurring and one-time fees.

How much car can you afford?

Everyone's budget is different, but one rule of thumb is to keep your monthly car payment at 15% or below your income after taxes. You should keep in mind the total cost of buying a car not only includes the monthly loan payment, but includes any sales tax, cost of insurance, gas, annual registration fees, and maintenance and repairs. Parking may also be an additional expense.

For example, if your salary is $50,000 a year, 15% would be $7,500 a year or $625 a month. Based on your location, driving history, car type, and other factors, your monthly auto expenses may be:

  • Car payment: $300
  • Auto insurance: $90
  • Maintenance: $50
  • Fuel: $60
  • Total monthly cost of car ownership: $500

You can get an insurance quote before you purchase the car and check the gas mileage to estimate your costs. After you have done your research, know how much you can afford and what type of car to buy, the next step is to shop around for the best auto loans.

Get your auto loan pre-approved

Before stepping on to the car lot, get a prequalified or pre-approved loan first. This can give you leverage when it comes to negotiating. Dealerships will try to offer you financing, but may not offer the best rate. You will also know how much car you can buy. The temptation to upgrade to the latest bells and whistles may be high, so having the pre-approval amount beforehand can help you stay within your budget.

Dealers tend to take people with a pre-approved loan more seriously since they know they are ready to purchase a car as opposed to someone who is just window shopping. Many financial institutions or lending platforms will approve your loan on the same day you apply.

Information you need to apply for an auto loan

When applying for an auto loan, you will typically need to provide the lender your salary and employment information, the amount you want to borrow, and your housing information. The lender will check your credit score. Your approval and interest rate will depend largely on your credit score and history. If you have bad credit, you can offset the higher cost of a loan with a larger down payment or a shorter loan term.

Since vehicle price is also considered, the terms will vary depending on the vehicle you choose. It is important to know that when financial institutions advertise low interest rates, it is typically for those with the best credit scores.

Once you start applying for auto loans to find the best rates, the lenders will conduct a hard inquiry on your credit report which will hurt your score.

However, if you apply for loans within a two-week period, the credit bureaus will count them all as one inquiry. You should time your applications and apply with different lenders during this two-week period.

Balance your loan terms with your budget

Typically, the longer your auto loan term, the higher your interest rate. Getting a shorter-term loan will mean you pay less interest, but the monthly payment amount will be higher. Look at your budget to find an affordable monthly payment that balances the financing costs.

Some financial institutions will allow you to roll up any sales tax, title, registration, or even warranty charges into the car loan. This will increase your loan payment. Be careful that your loan doesn't become "upside down." With extra costs rolled into the loan, you could owe more than what the car is worth.

Your final loan amount will depend on the purchase price of the car, minus the total down payment you make, and the cash value of your current car if you plan on selling it or trading it in. Here is more information about these terms.

Trade-in value

The value of your current vehicle will be subtracted from the price of your next car. The dealership is essentially buying your car from you. The trade-in value is typically less than selling it on the private market.

Down payment

You can choose to pay as much or as little in advance as you want. The more you put down, the less you have to borrow, potentially lowering your monthly payment. Some lenders will require a minimum down payment, depending on the car.

Loan term

This is the length of time you take to repay your loan. This affects your APR and how much interest accrues over its lifetime. A shorter loan term could reduce your costs in the long run, but it will likely raise your monthly payments. Loan terms depend on the bank or credit union. They are generally 36 months, 48 months, 60 months, and 72 months. Some financial institutions offer loan terms as long as 84 months or seven years.

Equity

This is the value of your car after any outstanding debt is subtracted. If you owe $5,000 on a $10,000 car, then your equity is $5,000. The amount of equity you have in your car can affect your refinance rate. Some lenders will not allow you to refinance a vehicle if your equity is too low.

Different types of auto loans

The rates will depend on the type of auto loan you get. New car loans are typically for brand new cars or cars under a certain mileage or car year. A used car loan is for a used car below a certain year or above a certain number of miles. Used car loans generally have the highest interest rate due to depreciation and lower prices than new cars. Used cars may also have more mechanical problems.

If you already have an auto loan, you can refinance your car to get a lower interest rate. Refinance loans usually have the lowest interest rates. It makes sense to refinance your car if you had bad credit when you purchased it and since then, your credit score has improved. Some lenders will not refinance a car that is too old, over a certain mileage, or below a certain value.

The last thing used for an auto loan is to buy out a car lease. A lease buyout loan gives you the ability to buy your currently leased car. You can use the loan to buy your car at the end or before the end of your lease.

Your car is collateral

An auto loan is a type of secured loan. If you default on your loan, the lender will repossess the car as collateral. It will then try to sell the car to recoup its losses. Because an auto loan is a secured loan, they offer better rates than unsecured loans such as a personal loan or credit card. If you sell the car or trade it in for an upgrade, you will have to pay back the balance left on the loan.

It is common for people to buy more car than they need. Once you check your budget to find the optimal total cost you can afford, do your research and shop around to find the best auto loans. Online banks and credit unions generally have better rates than brick-and-mortar banks. By getting a pre-approved loan, you can find the best rate available and you will have better negotiating power with the dealer.

FAQs

  • Lenders typically prefer working with dealerships because they can easily verify the value of the car and its condition. However, if you're set on buying from a private seller, some lenders may require you to provide more documentation and undergo a more thorough inspection of the vehicle.

  • There's no single answer to this question, as it ultimately depends on your personal finances and preferences. However, putting down a down payment can have several benefits, such as lowering your monthly payments and potentially reducing the amount of interest you'll pay over time. If you can't afford to put down a significant amount, it may be smarter to delay buying a car until you can save up.

  • When shopping for auto loan rates, it is advised to do so within a 14 to 30-day period. This ensures that multiple inquiries will be counted as a single inquiry or may be excluded altogether by certain scoring systems. However, it is important to note that there may still be a slight decrease in credit score, typically ranging from five to 10 points when there is a hard inquiry. But your credit score should gradually improve with timely monthly loan payments.

  • With so many lenders offering different rates and terms, it can be overwhelming to decide which one to choose. However, financial institutions such as credit unions and online-only banks typically offer the most competitive rates. It's important to shop around and compare offers from different lenders to find the one that offers the best rate and terms for your financial situation.

  • Many dealerships make most of their money from financing your loan, and selling you insurance, warranties, and other services. You should always walk into a dealership with outside financing for your auto loan instead of going through the dealership. You will typically get lower rates than what a dealer offers and be in a better position to negotiate. Whichever route you choose, be sure to compare the terms and costs associated with each option thoroughly to make the most informed decision.

Our Loans Experts