Best Auto Loan Rates : Compare the Best Auto Loan Rates

An auto loan helps consumers buy or refinance their car without having to pay cash upfront. Instead, using a car loan, car-buyers can borrow against their car and then pay off their loan over time through fixed monthly payments.

This article discusses the following info about Best Auto Loan Rates :

  • RUNNER-UP, BEST OVERALL : Consumers Credit Union
  • BEST BIG BANK LENDER : Capital One
  • BEST FOR REFINANCING : OpenRoad Lending
  • BEST FOR USED CARS : LightStream
The best auto loan rates are those that charge consumers the least amount of interest over time, and are also available from lenders that offer quick and easy application processes and seamless online account maintenance tools.

Consumers Credit Union

Consumers Credit Union offers auto loans nationwide that finance 100% of your new or used vehicle, making it our choice as the runner-up for the best overall lender.

Consumers often like credit unions because they often have lower interest rates compared to banks. Everyone who has an account at a credit union is part owner, so institutions like Consumers Credit Union (CCU) can give their members incredible deals.

Many credit unions have membership qualifications, such as being part of a military branch, an alumnus from a specific school, or a resident of a particular state. However, CCU requires you to pay a fee of $5 and keep at least that much in a savings account. In return, you can get auto loan rates as low as 2.24%. These loans include fixed rates, mechanical repair coverage, and an interest method that lets you pay interest only on the unpaid amount of the loan.

The potential downside to CCU loans is that not everyone will be approved. You should have at least a decent credit score to qualify. As with any loan, CCU will do hard credit check with each application, so it’s important to apply only if you’re serious about buying a car.

  • Offers new, used and refinance loans
  • No minimum or maximum loan amount
  • Available in all 50 states
  • Must be a member of the credit union
  • Lowest rates available only for those who qualify

Opportun is our choice as the best for bad credit since it offers personal loans with limited credit score requirements and an easy online application, and funds available within two hours.

Having less-than-perfect credit shouldn’t keep you from getting the car you need. While you shouldn’t expect the low rates that those with great credit have, you can avoid overpaying with Oportun. Through this online lender, you can get a loan for a car that you purchase from an auto dealer or a private party. Since ​buying through a private party can be cheaper, this can save you big bucks over dealerships. If you have a great car and you want a better loan to match, you can use Oportun's refinancing options.​

Oportun will lend to people with limited or no credit history. You should have proof of income to apply. Loan amounts can range from $300 to $10,000, so you can get the car you want. Best of all, Oportun does not require a hard credit check when prequalifying and checking rates. So, looking around won’t hurt the score you’re trying to fix. The application takes only a few minutes, is completely online, and results in an instant decision. If you live in one of the states where Oportun is available, this is an excellent choice.

  • No minimum credit score required to apply
  • Easy online application with instant approval
  • Pre-qualify with a soft credit check
  • Only available in 12 states
  • High interest rates
Capital One

Capital One gives car shoppers the peace of mind of working with a major secure lender and offers competitive rates placing it in the top spot as the best big bank lender.

Understandably, some people aren't as comfortable using lesser-known or niche lenders for something as crucial as an auto loan. If you want the backing of a major financial institution with a household name, Capital One may be your best bet. If you're in the market for a new or used car, you can submit a request to get pre-qualified for auto financing through the bank's Auto Navigator program. This early step does not affect your credit since it is a soft pull.

The pre-qualification is then valid at more than 12,000 dealers throughout the nation, each of which you can find on Capital One's website. Just present the qualification note at a participating dealership and begin the full application process once you find the perfect ride.

  • Offers competitive rates for all credit scores
  • Pre-qualify with a soft credit check
  • Must contact dealer directly to confirm vehicle is in stock
  • Loans only available through the lender’s network of dealers
OpenRoad Lending

OpenRoad Lending specializes in auto refinancing saving customers an average of more than $100 per month, making it our choice as the best for refinancing.

While getting a new set of wheels is exciting, there’s something to be said for sticking with a reliable ride. However, if your credit improved, you paid off debt, or you got a raise since you first financed your auto loan, you may be paying too much.

OpenRoad Lending allows eligible applicants to refinance existing loans and save an average of $100 per month on their car payments. The application process is simple and entirely online. Within as little as a few minutes of applying, you can receive your decision with complete details about the loan.

If you run into any trouble with your application, OpenRoad Lending's customer service team can help. Perhaps that's why 98% of customers say that they are satisfied with their loans. Before applying, you should know that there is only the option to apply with hard credit pull and it is not possible to prequalify or check rates with a soft pull, so this service is only for people who are serious about refinancing. The higher your credit score the lower your rate will be.

  • Easy online application
  • Specializes in refinancing
  • No application fees
  • No option to prequalify and check rates with a soft pull
  • Vehicle age and mileage restrictions

LightStream offers several auto loans, including unsecured loans for borrowers with excellent credit that don’t use the car as collateral, securing our spot as the best for used cars.

The online lending arm of SunTrust Bank, LightStream makes it easy to apply for a loan and get funding the very same day, helping buyers negotiate a better purchase price with their “cash” in hand. It will also beat other lenders’ offers by 0.10% and offers a 0.5% discount for setting up monthly auto payments.

Borrowers with excellent credit even have the option to take out unsecured loans that don’t use your vehicle as collateral. If you can’t make payments, your car won’t be repossessed, though it can still have a serious impact on your credit. Since LightStream doesn’t use a car as collateral, it has no restrictions on the age, mileage, make, or model of a vehicle.

LightStream also offers no pre-approval process, which means applying for a loan requires a hard credit check. As a result, it’s a better option for borrowers with high credit scores who can afford to lose a few points from the credit inquiry.

  • Offers secured and unsecured auto loans
  • No restrictions on make, model, or mileage
  • 0.5% autopay discount
  • No pre-approval process

Carvana offers a completely online shopping experience, from financing to delivery with no minimum loan amounts and is our choice as the best for tech junkies.

It seems like every industry is cutting out go-betweens these days and the car industry is no exception. If you would rather skip the dealership and the bank altogether, Carvana is the site for you. Without ever leaving your home, you can apply for a car loan, choose your car and get it delivered. If you want to trade your old car in, you can do so while you’re at it. Carvana will give you an offer and pick it up from your home.

It seems like every industry is cutting out go-betweens these days and the car industry is no exception. If you would rather skip the dealership and the bank altogether, Carvana is the site for you. Without ever leaving your home, you can apply for a car loan, choose your car and get it delivered. If you want to trade your old car in, you can do so while you’re at it. Carvana will give you an offer and pick it up from your home.

Best of all, these loans aren't just easy to get; they are great deals for all kinds of borrowers. There is no minimum credit score, so anyone who is 18 years old, has no active bankruptcies and makes at least $4,000 per year is eligible.

Carvana offers custom loan terms based upon your situation and the vehicle you're buying. Each vehicle you might want to buy could have different loan terms from Carvana. You can see your loan terms by prequalifying with a soft pull that won't hurt your credit. Plus, without pushy salespeople, you can be sure that you can relax and choose the car you want. If you're not sure how much of a loan you can afford, you can use Carvana’s Auto Loan Calculator.

  • Prequalify with a soft credit check
  • No minimum credit score requirement
  • End-to-end online shopping experience
  • Financing for Carvana’s vehicles only
  • $4,000 minimum annual income required
  • Only used vehicles