Next to a house, a car is the most expensive purchase most people make. If you’re financing your vehicle, choosing the right lender can save you thousands in interest and fees.
Does a lender have a good online presence and mobile app? And good customer service can be the difference between a smooth experience and a nightmare.
To find the best lenders for auto loans, CNBC Select evaluated dozens of lenders based on rates and terms, loan options and other factors. (Read more about our methodology below.)
Paying too much for car insurance? Check out these options to save.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Geico auto coverage is available in all 50 states and Washington, D.C., with 16 discounts and add-ons like roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Best auto loan rates and financing of September 2025
Best for competitive rates: Capital One Auto Financing
Capital One Auto Finance
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APR
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Loan types
New vehicles, used vehicles, refinancing
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Loan amounts
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Terms
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Minimum credit score
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Fees
There is no early payoff penalty. Late fees depend on the lender.
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Availability
Capital One Auto Finance offers car loans nationwide except in Hawaii and Alaska.
Pros
- Lends to borrowers with bad credit
- No early payoff fees
- Prequalification available
Cons
- Only available for vehicles from participating dealers
- You must apply at the dealer to get the final loan terms
Who’s this for? A full-service bank, Capital One Auto Financing is known for competitive rates and minimal fees for auto financing — and existing customers may be eligible for additional discounts and benefits..
Standout benefits: Browse used and new cars from participating dealerships with Capital One’s online Auto Navigator and you can get pre-qualified with a soft credit check.
Best for customer service: PenFed Credit Union
PenFed Auto Loans
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APR
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Loan purpose
New vehicles, used vehicles, refinancing
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Loan amounts
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Terms
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Credit needed
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Early payoff penalty
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Late fee
20% of the overdue amount, up to $25
Pros
- Loan amounts start at $500
- No early payoff fees
- Prequalification available
- Cash incentives through car-buying service
- Co-borrowers allowed
Cons
- Credit union membership required
- Late payments subject to fees
Who’s this for? PenFed Credit Union ranked near the top of J.D. Power’s 2024 consumer lending study, which measures satisfaction with customer experience, meeting their borrowing needs, trust, ease of doing business, digital channels and other criteria. It also received an A+ from the Better Business Bureau, the agency’s highest grade.
Standout benefits: If you purchase your car through PenFed’s car buying service, powered by TrueCar, you’ll be eligible for cash-back incentives and special loan rate discounts.
Best for rate shopping: MyAutoLoan
MyAutoLoan
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APR
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Loan types
New vehicles, used vehicles, refinancing, private party and lease buyout
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Loan amounts
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Terms
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Minimum credit score
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Early payoff penalty
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Late fee
Pros
- Open to borrowers with bad credit (minimum 575 score)
- No early payoff fees
- Prequalification available
- Provides multiple offers
- Fully online application available
- Co-borrowers and co-signers allowed
Cons
- Not available in all states
- Limited customer service
Who’s this for? Want to maximize comparison shopping? MyAutoloan is a fully online platform that connects car buyers with up to four pre-approved loan offers in just a few minutes. You’ll only get a hard credit inquiry if you apply with a lender you’re matched with.
Standout benefits: MyAutoloan offers a solid selection of auto financing, including new and used car loans, lease buyouts and refinancing. Get approved with a FICO score of 600 or apply with a co-signer or co-borrower.
Best online experience: Carvana
Carvana Auto Loan
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APR
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Loan types
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Loan amounts
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Terms
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Minimum credit score
Carvana does not have a minimum credit score requirement, but some partner lenders might
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Fees
No origination fee or early payoff penalty. $5 late fee after a grace period of 16 days
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Availability
Carvana is licensed to lend in all 50 U.S. states.
Pros
- Open to borrowers with bad credit
- No prepayoff penalty
- Prequalification available
- Allows co-signers
Cons
- Financing only available for cars sold through Carvana
- Not available in all states
Who’s this for? Carvana is a great option if you don’t want the hassle of going to the dealership. After filling out the online application, you can get a preapproval offer that’s good for 45 days (compared to 30 with most lenders) and then schedule your new ride’s home delivery.
Standout benefits: Federal EV tax credits can be applied directly to financing. Carvana also offers gap insurance and vehicle protection plans.
Best for used vehicles: Carmax
CarMax Auto Loan
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APR
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Loan type
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Loan amounts
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Terms
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Minimum credit score
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Fees
No origination fee or prepayment penalty but late fees vary by state and contract.
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Availability
CarMax does not lend in Alaska, Arkansas, Hawaii, Montana, North Dakota, South Dakota, Vermont, West Virginia or Wyoming
Pros
- Open to borrowers with bad credit
- No early payoff fees
- Prequalification available
- 100% online application process available
- Low minimum loan amount
- Allows co-borrowers
Cons
- Financing is only available for cars sold at CarMax
- Not available in all states
- Prices are non-negotiable
Who’s this for? The largest used-car retailer in the U.S., CarMax offers financing for the cars it sells. Buyers benefit from its large inventory and “no-haggle” policy..
Standout benefits: CarMax’s Three-Day Payoff program allows borrowers who find a better rate or term to change lenders within three business days at no extra cost. The company doesn’t require a minimum credit score for approval.
Best for refinancing: Autopay
Autopay Car Loan
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APR
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Loan type
Used and new vehicles, refinancing loans, lease buyout
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Loan amounts
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Terms
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Minimum credit score
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Fees
No early payoff penalty. Late fees vary by lender.
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Availability
Autopay is available in all 50 U.S. states.
Pros
- Open to borrowers with bad credit
- No early payoff fees
- Prequalification available
- Wide loan amount range
- Allows co-applicants
Cons
- Loan approval may take up to 48 hours
- Loan funding can take up to two weeks
Who’s this for? Autopay offers both traditional and cash-back financing, as well as lease-buyout financing. It works with borrowers of all credit profiles, providing prequalification without a hard credit check.
Standout benefits: Lenders in the Autopay network approve loan terms as long as 96 months, much longer than most competitors.
How to get a car loan
An auto loan is a form of installment financing specifically designed for purchasing a car. You’ll pay back the balance (plus interest) in fixed monthly increments over a specified term.
There are three main ways you can get an auto loan:
- Dealer financing. Many auto dealers provide their own financing options. While convenient, this option usually leads to higher interest rates.
- Bank or credit union. With a traditional bank or credit union, it can take a couple of business days to get approval and funding. Interest rates are usually lower than financing with a dealer and you may have the option to refinance if rates go down.
- Online lender. Some digital-first lenders like Carvana offer more credit score flexibility and faster approval speed than traditional banks. Sites like MyAutoloan will present a variety of offers from participating lenders, cutting down on your comparison shopping.
What is a good down payment on an auto loan?
It’s common for auto loan lenders to require a down payment equivalent to a certain percentage of the vehicle price. Experts often recommend aiming for an upfront payment of between 10% and 15% of the vehicle price.
In general, a higher down payment can help you qualify for a lower interest rate and bring down your monthly payment.
How to shop for an auto loan
When financing a car, you want to make sure you secure the best terms your financial and credit situation can get you. To do that, consider these factors:
Your credit score
A high interest rate can add thousands of dollars to what you pay over the loan’s lifetime. In general, the best rates are reserved for borrowers with high credit scores. If your credit could use some work, take time to improve your score before shopping for a car.
Your down payment
A bigger down payment often leads to a lower APR and smaller monthly payments. Typically, you want to put 20% down on a new car or 10% on a used car, depending on your finances.
Available interest rate
The lower rate you get, the less you’ll pay in interest charges over the life of the loan. This can lead to thousands of dollars in savings. Don’t worry about the impact multiple hard inquiries will have on your credit: Most credit scoring models will count car financing inquiries made within 14 to 45 days of each other as one.
Available term lengths
Get the shortest loan term length you can fit into your budget, since a longer term means more interest paid over the life of the loan. Plus, many financial institutions will give you a higher interest rate to begin with for choosing a longer loan.
Your monthly payment:
Your monthly car payment consists of the loan principal and interest for that month. A smaller monthly payment is usually better on your bank account but it could mean you wind up paying more interest in the long run.
What determines your auto loan interest rate?
Lenders use several factors to determine the interest rate to give you on an auto loan.
- Credit score: This is one of the most important factors since it paints a picture of your creditworthiness — or how likely you are to repay the loan in full. A higher credit score means you may qualify for some of the lower interest rates.
- Loan-to-value ratio: This refers to how much of a down payment you plan to make on the vehicle compared to the loan amount you’re borrowing. A higher loan-to-value ratio means that you’ll have significantly more debt than equity in the vehicle. Generally, higher loan-to-value ratios are considered riskier so you may be on the hook for higher interest rates.
- Debt-to-income ratio (DTI): As with any other form of credit, lenders also weigh the amount of debt you have in relation to your income. Generally, a lower DTI helps qualify you for lower rates.
- Vehicle age: Purchasing an older car can mean higher interest rates. This is because older cars can have a greater chance of needing costly repairs, which means more risk for the lender.
Auto loan FAQs
What credit score do I need for an auto loan?
To get the most favorable financing terms when buying a car, you’ll need a credit score of at least 670, which is considered “good” credit. That said, it’s not impossible to get approved for a car loan even with bad credit as specific requirements vary by lender.
Can I negotiate my rate on an auto loan?
You generally can (and should) negotiate interest rates when shopping for a car loan since the rate the dealership gives you can be higher than what the lender proposed, leaving room for negotiation.
Why would a bank deny a car loan?
There are a few reasons a financial institution can reject your auto loan application, including a low credit score, a high debt-to-income ratio or not enough verifiable income.
What is a good car loan interest rate?
A good car loan interest rate will depend on what you’re willing to pay in interest. Auto loan rates are influenced by the benchmark rate set by the Federal Reserve. Having a high credit score and healthy finances will help give you the best chance at qualifying for a low rate.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best auto loans.
Our methodology
To determine the best auto loans, CNBC Select analyzed more than a dozen car loan providers, including banks, dealerships and online marketplaces.
When narrowing down and ranking the best car loans, we focused on the following features:
- Loan sizes: The above lenders provide a variety of loan sizes, ranging from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes
- Loan terms: Each lender on our list provides multiple financing options to support a variety of budgets and timelines.
- Credit requirements: Lenders with flexible credit requirements were weighed more heaily. In addition, each lender on our list allows borrowers to add a co-signer or co-borrower
- Prequalification: Each lender allows borrowers to apply for prequalification, which allows you to get estimated loan terms without hurting your credit score
- Online user experience: The lenders on our list make it easy to complete all or most of the preapproval and application process online.
- Fees: The lenders on our list do not charge an origination fee, application fee or prepayment penalty
- Customer service: We considered whether a lender had a convenient online application, robust customer service hours, an online chat feature and a mobile app. We also considered how it was ranked by J.D. Power and the Better Business Bureau,
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on that criteria, the best auto loan rates are from:
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
