Best Auto Loan Rates in August 2024

Credit union car loans tend to offer the lowest rates, and Southeast Financial Credit Union (SFCU) is no exception. Its rates are especially low on short-term car loans. If you have excellent credit, you could qualify for an APR as low as 4.50% on a 12-month term.

If you like to do business in person, though, SFCU might not be the best choice. That is, unless you live in central Tennessee. That’s where all of SFCU’s brick-and-mortar branches are located.

SFCU has a minimum credit score requirement of 600 but doesn’t offer prequalification. You’ll need to agree to a hard credit hit to see if you’re eligible. You also need to join the credit union before you can borrow.

All SFCU members must open a savings account with a deposit of at least $5. To become a member, you must meet one of the requirements below:

• Make a $5 donation to Autism Tennessee
• Be a current employee or retiree of a Southeast Financial Select Employee Group
• Be related to a current SFCU member
• Live, work, worship or go to school in certain parts of TN, KY or MS

Navy Federal Credit Union (NFCU) gives active-duty and retired military a 0.25% rate discount on auto loans. NFCU offers other unique perks, too. For instance, if you’re on active duty, you can get paid early if you get your paycheck directly deposited into an Active Duty Checking account.

Still, like many other car loan lenders, NFCU doesn’t disclose its minimum credit score requirements. It also has strict membership requirements that not everyone will meet.

NFCU membership is open to the following groups:

• Active-duty military (any branch)
• Military retirees, veterans and annuitants
• Delayed Entry Program enlistees
• DoD Officer candidates, ROTC or reservists
• A family member or household member of any of the above

You must also open an account with a deposit of $5 or more.

PenFed’s car-buying service can help you save money in two ways. First, you could get cash back and bonuses through the car’s manufacturer. PenFed will also give you a discounted 4.74% APR on your car loan.

Like with any credit union auto loan, PenFed requires you to join before you can borrow. And although PenFed is overall competitive, you have to use its car-buying service to get its lowest APRs.

PenFed doesn’t provide much insight into its credit score requirements. However, PenFed membership is open to everyone. All you have to do is open an account with a $5 deposit and you can apply for a loan.

Applying for auto financing when you have less-than-perfect credit can be a pain. Autopay is an auto loan marketplace that can make the process easier. Fill out one quick form online and you could have multiple offers to compare. Better yet, it works with borrowers with scores as low as 550.

Note that Autopay’s advertised minimum APR won’t apply to you if you have bad credit. Lenders give their lowest rates to those with the highest credit scores. You’ll need to prequalify to see what kind of rates you might get from Autopay’s lending partners.

Autopay is a loan marketplace that connects borrowers to partner lenders. These partners all have different eligibility requirements. To use the marketplace, you must have a credit score of 550 or better. From there, you can prequalify to see what lenders you might be eligible for.

Auto financing from a large bank can have its perks. Compared to small, regional banks, large banks tend to have more digital presence. Case in point — you can apply for an auto loan through Bank of America’s mobile app.

Bank of America auto loans are open to anyone, but only Preferred Rewards members qualify for APR discounts. To be a Preferred Rewards member, you must have an eligible Bank of America personal checking account.

Bank of America’s borrower requirements are unclear. It does, however, give some guidelines about the cars eligible to be financed. To get a loan, the car you’re buying must:

• Be less than 10 years old
• Have less than 125,000 miles
• Be worth at least $6,000
• Be used for personal use only
• Not be a commercial heavy-duty truck or van
• Not have a salvage or branded title

According to internal LendingTree data, you could find competitive rates with Capital One whether you have good or bad credit. It also has a low minimum loan amount, so an inexpensive used car isn’t off the table.

That said, Capital One won’t finance a car from just anywhere — you have to buy from a partner dealer. However, its Auto Navigator tool can help you find your perfect ride from an eligible dealership.

Capital One doesn’t specify its requirements, but our data shows that it works with borrowers on both ends of the credit spectrum. You can check your eligibility by prequalifying on its website.

Buying a car from a private party instead of a dealership can save you money, but finding a private-party auto loan can be challenging. PNC might help.

This bank offers several types of loans, including private-party car loans. You might even be able to buy a car that isn’t yet fully paid off. As long as the seller comes with you to your loan closing, PNC can use a portion of your loan to pay off the existing loan. Then, you can transfer ownership.

However, unlike PNC’s dealership loans, you’ll need to apply for a private-party auto loan by visiting a branch.

PNC doesn’t specify its borrower requirements, including minimum credit score. Like other lenders, it’ll probably review your credit history, debt-to-income (DTI) ratio and other factors.

Most lenders charge a higher APR on used car loans, but not Digital Federal Credit Union (DCU). Whether you’re buying used or new, you can enjoy the same low rate. If you have excellent credit, you might be able to borrow more than what the car is worth. This could help you cover registration and insurance costs.

Like other credit unions, though, you have to become a member to borrow. You must also take a hard credit pull to check your eligibility since you can’t prequalify.

DCU doesn’t specify what credit score it requires for an auto loan. It does provide details about who is eligible for DCU membership. People in the below groups can join DCU:

• Certain relatives of current DCU members
• Employees and retirees of participating employers
• Members of participating organizations
• Those who live, work, worship or go to school in certain Massachusetts communities
• People who live in a participating condo association

Carvana’s unique online car-buying experience could be a great choice for the right person. Just hop onto Carvana’s website, find your desired car and apply for financing — all without leaving your home.

Still, not everyone will feel comfortable buying a car online. Carvana has a seven-day satisfaction guarantee, but you can’t check out the car in person before buying. Also, it’s important to know that Carvana has been the target of several lawsuits, namely due to tag and titling issues.

Compared to some lenders, Carvana’s eligibility requirements are transparent and easy to meet. To borrow, you must:

• Be at least 18
• Have no active bankruptcies
• Make at least $5,100 a year
• Not live in Alaska or Hawaii

Traditional auto loans use your vehicle as collateral. If you don’t make your payments, your lender can repossess your car. Not with LightStream.

This lender offers unsecured loans, which means it doesn’t require collateral. Instead, your eligibility hinges only on your credit score, assets and borrowing history.

Thanks to a lack of vehicle restrictions and same-day funding, LightStream auto loans can come with little hassle for those who qualify. Still, expect to pay extra for the convenience. LightStream’s auto loan APRs are a little higher than others on this list.

LightStream states it only lends to borrowers with good to excellent credit. Below you’ll find some metrics that LightStream says it looks for in approved borrowers:

• At least five years of credit history, with a diverse mix of accounts
• Assets such as retirement savings, investment accounts and liquid bank accounts
• An acceptable DTI ratio
• A track record of making debt payments on time

Chase Bank offers auto loans at dealerships across the country. So even though you can only use Chase at a partner dealer, you can get prequalified. Not all lenders offer this option. Also, Chase doesn’t always require a down payment.

Unfortunately, Chase doesn’t advertise its rates. You must prequalify to see what APR it might offer you.

Chase doesn’t specify what it’s looking for in its borrowers. It does shed some light on the types of vehicles it will finance. Eligible vehicles must:

• Be less than 10 years old (or less than five years old, if a Tesla)
• Have less than 120,000 miles
• Not be commercial vehicles
• Not have branded or salvaged titles
• Not be used for ridesharing