Best Auto Loan Rates

Officially Pentagon Federal Credit Union, PenFed Credit Union was created to serve military members and their families. Now, anyone can become a member for $5.

PenFed Credit Union has partnered with national car-buying service TrueCar to offer its members low car loan rates on the market. Rates for new car loans are as low as 4.89% purchased through TrueCar and 5.54% for all other new cars, along with financing of up to 125%. Used auto loan rates start as low as 5.54% for a 36-month term when you go through TrueCar.

PenFed’s lowest car rates are only available if you use their car buying service, which is limited to select dealerships. The credit union’s most flexible loan amounts offer short terms. For instance, a 36-month new car loan has a minimum $500 loan amount, while loans of 84 months have a minimum of $20,000.

*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.

Consumers often like credit unions because they often have lower interest rates than 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.

CCU requires you to pay a $5 fee and keep at least that much in a savings account. In return, you can get auto loan rates as low as 3.49% on 2020 model cars or newer. 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.

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

Having less-than-perfect credit shouldn’t keep you from getting the car you need. While you shouldn’t expect the low rates those with excellent credit receive, 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.

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 entirely online, and results in an instant decision. If you live in one of the states where Oportun is available, this is an excellent choice.

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 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.

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 they're satisfied with their loans. Before applying, you should know that there is only the option to apply with a hard credit pull. It's not possible to prequalify or check rates with a soft pull, so this service is only for people serious about refinancing. The higher your credit score, the lower your rate will be.

It seems like every industry is cutting out go-betweens these days, and the car industry is no exception. If you'd rather skip the dealership and the bank altogether, Carvana is the site for you. You can apply for a car loan without ever leaving your home, 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 18 years old, has no active bankruptcies, and makes at least $4,000 per year is eligible.

Each car you might want to buy could have different loan terms from Carvana. Carvana offers custom loan terms based on your situation and the vehicle you're buying. 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 .

If you are tossing around the idea of getting a new car but are not sure if it will fit in your budget, stop by LendingTree first. Without affecting your credit, you can shop from a variety of lenders . You can use this feature for refinancing, new cars, used cars, or lease buyouts. Just enter your desired loan type, down payment, financial status, and the vehicle you want. Then, LendingTree will match you with lenders.

You can compare the offers to find the best rates and terms for your life. If you decide to apply, the lender will require a full application. LendingTree can also help with a loan-payment calculator , free credit-score finder , and other tools.

Although LendingClub made a name for itself with peer-to-peer personal loans, the online lender now offers auto-loan refinancing. If you're looking for ways to lower your monthly bills, LendingClub can help by showing you your refinancing options .

First, complete the initial application and get instant offers. This step is a soft pull on your credit that won't change your score. Then you can compare the details of each proposal to see which best fits your needs. Whether you need to lower your interest rate, increase the length of your loan, or both, you can find the right lender.

Once you decide on an offer, you can finish the official application. The process is entirely online and easy, and you won't pay an origination fee for your loan. Sit back and enjoy a smaller monthly payment. Rates start at 3.99%. Whether you're sure you want to refinance or just seeing what's out there, LendingClub is a great option.