This Year’s Best Auto Loan Rates

Shopping around for a low-interest rate can help new car buyers save money over the life of the auto loan. For those refinancing, it can decrease the monthly payment.

Here are 5 lenders and companies offering the best auto loan rates this year:

PenFed Credit Union: Best Overall

PenFed Credit Union has some of the best rates available. Although you have to be a member (for at least 60 days) to access these rates, it’s fairly easy to join.

New, used, and refinance loans offered

APR range: As low as 1.39%

Loan amounts from $500 to $100,000

Pros

– Rate discounts for using its car buying service

– You can borrow up to 110% of the vehicle’s value

Cons

– Lowest rates only available to those with excellent credit history

– Minimum loan amount for longer terms is high

Bank of America: Best Bank Auto Loans

Bank of America has a no-fee online application process and claims to give applicants a decision within 60 seconds. Preferred Rewards members can snag a discount of up to 0.5% on their rate. 

New, used, and refinance loans offered

APR range: As low as 2.59%

Minimum loan amount: $7,500 for purchase ($8,000 in Minnesota)

Pros

– Transparent rates & terms 

– Low rates & a wide selection of loan options

Cons

– The minimum loan amount is high

– Restrictions on vehicles you can finance

Consumers Credit Union: Best Credit Union Auto Loans

Unlike other credit unions, Consumers Credit Union is a lot easier and relatively inexpensive to join. It also offers members flexible loan amounts and terms.

New, used, and refinance loans offered

APR range: As low as 2.69%

No minimum or maximum loan amount

Pros

– Transparent rates and terms

Cons

– Lowest rates only available to those with excellent credit history

myAutoloan: Best for Bad Credit

myAutoloan lets you cast a wide net and get the best offer available, based on your credit profile. It takes just a couple of minutes to fill out the online form. Once submitted, you’ll be matched with (up to 4) lender offers. After you choose a lender (that’s offering you the best rate), you’ll receive a check or an online certificate within 24 hours.

New, used, and refinance loans offered

APR range: As low as 2.49%

Minimum loan amount: $8,000 for purchase, $5,000 for refinance

Pros

– Accepts borrowers with poor credit scores (as low as 575)

– Allows you to compare multiple offers at once

Cons

– The minimum loan amount is high

– Not available in Hawaii and Alaska 

AUTOPAY: Best for Refinance

AUTOPAY caters to folks rebuilding or improving their credit. It offers competitive rates and has flexible credit requirements. Borrowers can easily compare offers from different lenders and choose the best deal. 

APR range: As low as 1.99%

Minimum loan amount: $2,500

Pros

– Offers multiple refinance options: traditional auto refinancing, cash-back refinancing & lease payoff refinancing

Cons

– Best rates only available to those with excellent credit history