If you’re looking for a loan on a used car, make sure you know what your credit score is before you begin shopping. If your score is below 600, it may be difficult to get approved for financing unless you have excellent credit (700+). If this is the case for you, consider applying for an installment loan instead of a car loan—they typically have lower interest rates than traditional loans and often require lower monthly payments.
In this guide, we review the details of Best Apr For Car Loan, chase auto loan rates, bank of america auto loan rates, and best used car loan rates.
Before arriving at a dealership, it is wise to first research vehicle financing. Bankrate’s best auto loans are selected based on a lender’s available rates and terms, customer experience and transparency. Lender highlights are outlined below to help you to determine which vehicle financing option is right for you.
When you’re ready to buy or lease a new car, it’s important to shop around for the best deal possible. A variety of lenders offer car loans and leases, including banks and credit unions, as well as online lenders like [lender name]. Whether you’re looking for a low-interest rate or want to avoid paying any fees, there are plenty of options out there.

Best Apr For Car Loan
This post will discuss the top five lenders offering the lowest vehicle loan rates and explain how to obtain favorable financing conditions. We will also include the top auto loan providers with the most competitive rates on both new and used car loans. It makes sense to compare prequalification offers from multiple reputable lenders when looking around for auto loans. The following are some significant details about the finest auto loan rates:
Best Auto Loan Rates Providers
According to our research, the best annual percentage rate (APR) is presently offered by myAutoloan.com at 2.49%, and PenFed Credit Union and Consumers Credit Union typically provide some of the best rates and terms. Five leading lenders with some of the finest auto loan rates for 2022 are included in the table below.
Lowest Auto Loan Rates
Be aware that the lowest rates are available for borrowers with the best credit. In other words, the minimum credit score is the minimum needed to qualify for auto financing from a lender, not to get the lowest interest rate. Also, interest rates change frequently. The information presented here is current as of the time of publication.
Best Auto Loan Companies
Be aware that borrowers with the best credit can get the best rates. In other words, the minimum credit score is not required to receive the lowest interest rate, but rather to be eligible for auto financing from a lender. Additionally, interest rates fluctuate a lot. This article’s information is up to date as of the time of publication.
#1 PenFed Credit Union: Best New Car Loan Rates
Of all banks, credit unions, and loan companies at the moment, PenFed Credit Union boasts one of the lowest annual percentage rates. Although the beginning rate for new cars is promoted as being 4.44%, not just anyone can obtain rates that low. For those who use PenFed’s auto-buying service to get a new car with a 36-month loan term, this rate is applicable. The low APR is a perk to using this shopping process, which is provided by PenFed Credit Union in partnership with TrueCar.
Loan rates start at 5.24% if you buy a car without using this buying service. Loan rates for used cars begin at 5.64% with the buying service and 6.04% without. In comparison to other lenders’ rates, these are still some of the finest auto loan rates available for both new and used car purchases.
Membership and a $5 deposit are requirements for PenFed Credit Union. You can join by expressing interest in joining or through a number of different organizations.
PenFed Credit Union Pros and Cons
Even the best auto loans from PenFed Credit Union come with the benefits and drawbacks below:
Most motorists receive exceptional APRs from PenFed Credit Union, as it offers some of the best auto loan rates on the market. Remember that you’ll need to become a member to qualify, and keep in mind that APRs aren’t quite as low unless you use the credit union’s car buying service.
#2 myAutoloan.com: Best Used Car Loan Rates
Since 2003, the internet-based lender myAutoloan.com has been offering new automobile loan offers with rates as low as 3.99%. Over 800 customers have given the business a 4.2 out of 5 star rating on Trustpilot, and the Better Business Bureau has accredited it with an A+ grade (BBB).
To be eligible, borrowers must have a credit score of at least 575. MyAutoloan is a wonderful alternative for folks who need to get an auto loan but have lower credit scores because it has a lower credit score requirement than many other leading lenders.
The fact that myAutoloan is an online marketplace where you can compare rates from various lenders at once sets it apart from most businesses. To discover the best auto loan rates, it’s always a good idea to shop around. With myAutoloan, you can speed up the process. Be warned that to use myAutoloan, you must borrow a minimum of $8,000.
myAutoloan.com Pros and Cons
The following table lists out some of the pros and cons of choosing myAutoloan.com:
It’s rarely difficult to find some of the best auto loans from myAutoloan, as the site works as an online marketplace. It’s not the place to get a minor car loan, though, as you’ll need to finance at least an $8,000 loan to be eligible.
#3 Consumers Credit Union: Best Credit Union Used Car Loan Rates
Another excellent choice for auto loans with low interest rates is Consumers Credit Union. Anyone in the nation who can pay the $5 membership fee and maintain at least $5 in a savings account is eligible to join the Illinois-based credit union. The BBB has accredited the credit union with an A+ grade. For those with good to exceptional credit, or scores of at least 600, Consumers Credit Union offers auto loan packages.
Consumers Credit Union collaborates with TrueCar, like PenFed Credit Union does, to assist buyers in finding autos across the nation. One distinction is that regardless of whether they shop with TrueCar or not, purchasers can still receive the same interest rates.
Currently, prices for financing newer autos start at 4.69%. When using autopay, Consumers Credit Union will reduce the rate by 0.25%, and they will further reduce the rate by 0.25% if the autopay is connected to a Consumers Credit Union account.
Consumers Credit Union Pros and Cons
Below are some of the benefits and downsides of opting for Consumers Credit Union:
Consumers Credit Union can be an excellent choice for drivers who are comfortable with signing up for a credit union. Its competitive starting APRs and flexible loan terms make it a compelling option for anyone who’s looking for the best auto loans available.
For more details on Consumers Credit Union, head to the company’s website.
#4 Bank of America: Best Bank Auto Loan Rates
Bank of America offers a new car loan APR of 4.69% to borrowers with excellent credit, while used car rates start at 4.89%. If your looking to refinance your auto loan, the lender’s refinancing rates start at 5.79%. Bank of America Preferred Rewards members can also get an interest rate discount of up to 0.5%. As a national bank, Bank of America works with a huge variety of dealerships across the country, which means you don’t have to limit your options.
Be aware that Bank of America won’t finance vehicles older than 10 years or with more than 125,000 miles on the odometer. It also won’t finance cars under $6,000 in value or alternative vehicles like motorcycles and RVs.
Bank of America Pros and Cons
The major perks and drawbacks of choosing a Bank of America auto loan can be found in the following table:
The best auto loans from Bank of America come to those with a poor credit score, as the company is relatively generous with these drivers. You may end up paying a slightly higher APR, but your car loan will be backed by the financial strength of a large institution.
What Is A Good Auto Loan Interest Rate?
A good auto loan interest rate is usually 4% or lower, but typically the best auto loan rates are for new cars. According to the 2022 report from the National Credit Union Administration (NCUA), the average 60-month new car loan from a credit union has an interest rate of 2.78%. From a bank, the average rate is 4.69%. So, if you find these rates or lower, you know you’re getting a fair rate on your car loan.
Good New and Used Car Loan Rates
For an auto loan term of 48 months, good new car loan rates from credit unions are 2.67% or lower while good new car loan rates from banks are 4.60% or lower. New car loan rates tend to be lower on average, but loan rates for used cars are slightly higher. To put this in perspective, below is a table comparing new and used auto loan rates with different terms.
chase auto loan rates
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Pros and cons of Chase auto loans
Chase is best for borrowers with excellent credit who can qualify for its lowest rates. Borrowers who also want to get a general sense of their loan terms before committing to applying will also like Chase’s loan calculator and partner dealership search tool.
If you’re looking to refinance an auto loan or buy out a lease, you won’t have those options with Chase.
Chase also has a comprehensive FAQ section you can use to answer any additional questions you have.
How Chase auto loans compare
Chase has an undisclosed minimum credit score, while Wells Fargo isn’t clear about its credit score requirements either, as they vary depending on the dealership where you’re buying your car. Bank of America doesn’t have a minimum credit score it considers, so it may still be worth applying even if yours is low.
Chase is better than Bank of America for borrowers looking for affordable used cars. While Bank of America has a minimum loan amount of $7,500, Chase only requires minimum loans of $4,000. Wells Fargo doesn’t disclose its minimum loan amount.
Frequently asked questions
Chase has an A rating from the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The bank doesn’t have a perfect A+ grade because of government actions against the business. The BBB grades companies based on its responses to customer complaints, honesty in advertising, and transparency about business practices.
Chase has been involved in a few recent scandals.
In 2020, the company agreed to pay $920 million in “connection with spoofing and manipulation of precious metals and US Treasuries markets,” per the BBB. Also in 2020, the US Department of Labor also required Chase to pay $800,000 in back wages in a settlement that accused the bank of underpaying women.
In 2021, the SEC and Commodity Futures Trading Commission fined Chase $200 million for letting employees use WhatsApp to avoid trading regulations.
If these scandals make you uncomfortable, you may consider using a different lender for your auto loan.
Chase is a very solid option for auto loans, with competitive rates for borrowers with excellent credit and clear terms outlined on its website. The lender doesn’t charge many fees, unless you live in Indiana or make a late payment.
Chase does not specify a minimum credit score required for its auto loans, and it doesn’t specify which credit bureau it pulls your credit report from. You’ll find out if you qualify when you fill out an application with the bank.
Most loans will receive approval decisions within two to three hours. However, it may take longer if the bank needs additional documents to verify your financial situation and conduct a more detailed review.
bank of america auto loan rates
Purchasing a car typically means taking out a car loan. If you’re in the market for a new vehicle, you’ve probably spent a lot of time researching car options, but do you have a good understanding of how car loans work? When you take out a car loan from a financial institution, you receive your money in a lump sum, then pay it back (plus interest) over time. How much you borrow, how much time you take to pay it back and your interest rate all affect the size of your monthly payment. Here are the 3 major factors that affect both your monthly payment and the total amount you’ll pay on your loan:
How do these 3 factors affect your monthly payment?
A lower monthly payment always sounds good, but it’s important to look at the bigger financial picture: That lower payment could also mean you’re paying more for your car over the life of the loan. Let’s see how adjusting each of the 3 factors can affect your monthly payment:
Use the Bank of America auto loan calculator to adjust the numbers and see how differences in loan amount, APR and loan term can affect your monthly payment.
How a lower monthly payment can cost you more
One of the most important things to understand about how auto loans work is the relationship between the loan term and the interest you pay. A longer loan term can dramatically lower your monthly payment, but it also means you pay more in interest.
Consider a $25,000 car loan at a 3.00% APR and a 48-month term. Over 4 years of payments, you’ll pay $1,561 in total interest on the loan. If you extend that same loan to a 60-month term (or 5 years), you’ll lower your monthly payment by $104—but you’ll increase the total interest you’ll pay from $1,561 to $1,953.
Weigh all the factors before deciding
There isn’t any one-size-fits-all way to determine the best car loan. That’s why you need to take the time to understand how auto loans work and make the right decision for your specific financial situation.
Some people will benefit most by taking a longer term to reduce monthly payments and using the difference to pay down higher-interest debt. Others will prefer to make a higher monthly payment and pay off the loan sooner.
And if you have an existing car loan, you may be able to save by refinancing. Try our refinancing calculator to find out if you can lower your monthly payment by refinancing.
best used car loan rates
When it comes to purchasing a vehicle, there’s a lot to consider, such as what make and model you’d like, what gas mileage you need, and so on. But figuring out how to finance your next vehicle purchase is one of the most important steps in the process. When you’re comparing car loan options, you’ll see two terms — interest rate and APR. These both give you an idea of how much it costs to take out a car loan. We’ll show you the difference between APR and interest rate and share some tips to help you get better rates next time you buy a vehicle.
What is the difference between APR and interest rate?
While a loan’s interest rate and APR may look similar, there are some key differences you should understand before you finance a car. An interest rate is the percentage banks charge you for borrowing money. When you make monthly payments on a car loan, your payment will go toward both your principal balance and your interest charges.
When you finance a car, the annual percentage rate, or APR, is the total cost of interest, fees, and prepaid expenses expressed as an annual rate over the life of the loan. Because it includes the cost of certain prepaid charges you’ll pay, APR can give you a much better picture of how much you’re actually paying for a car loan.
What determines your interest rate on a car loan?
Interest rates are not the same for every person and are determined based on several factors. Here are some of the things that may affect your interest rate when financing your vehicle:
Credit score
Typically, the higher your credit score, the lower your interest rate will be. That’s because a high credit score indicates that you have a good history of paying off your debts on time, so you’re a less risky borrower. If you’d like to check your credit score, you can use Chase Credit Journey to find your score for free without hurting your credit.
The vehicle
The vehicle you purchase may also affect your interest rate. New vehicles tend to have a lower interest rate, sometimes even as low as 0%, while used vehicles usually have a higher interest rate.
Loan term
Longer loan terms tend to have higher interest rates than short-term loans. So, while you will have to pay a higher amount each month on the principal, with a short-term loan (think 24 months), you may save a lot of money on interest.
Lender
Interest rates vary. You should compare interest rates from several lenders to see which ones offer the best prices. You can also finance your vehicle through the vehicle manufacturer whose rates may be different.
What determines your APR on a car loan?
APR accounts for both your car loan interest rate and the cost of any financing fees and prepaid expenses. The Truth In Lending Act (TILA), a federal law, requires lenders to disclose the APR on your vehicle purchase before signing a loan agreement. An example of a prepaid expense would be an origination fee.
Interest rate
Your interest rate usually makes up the biggest part of the total APR on your vehicle. Because of this, lowering your interest rate can help you get the best APR on your car loan.
Origination fees
A loan origination fee is the amount of money you’ll pay upfront to cover the cost of processing your loan. These fees can be a small percentage of your loan amount or a flat fee.
What is a good interest rate on a car?
The best interest rate on a car loan is the lowest one you can get, but watch out for fees that will drive up your cost. With a lower interest rate, you’ll save on the total cost of the car loan and pay lower monthly payments.
How to get the best car loan interest rate
Something you can do to lower your interest rate is raise your credit score. While it takes time to improve your credit score, there are several steps you can take, like paying your bills on time or keeping the balance on your credit cards low.
Asking for a shorter loan term is another way to lower your interest rate since you’ll be borrowing from a lender for a shorter period of time. While this isn’t a realistic option for everyone, if you’re able to afford the higher monthly payments from short-term loans, it’s a solid way to decrease your overall financing costs.
If you have a poor or no credit history, getting a cosigner for your loan agreement might be a viable option for lowering your interest rate. Having a reliable, willing friend or family member sign on to take responsibility for the loan in case you default on it might make lenders feel as though you’re less of a risk, and therefore offer lower interest. Be cautious when doing this though, since your relationship with the cosigner could be harmed if you fail to pay off your loan and they’re left with the bill.
What is a good APR for a car loan?
A good APR is, like interest rates, one that is as low as possible. They can vary widely depending on several factors, but there are some things you can do to lower your APR on a car loan.
How do you lower your APR on your car loan?
Since interest rates make up a big portion of your total APR, everything mentioned above to help lower interest rates can help lower your APR. But there are other things to consider as well, like negotiating any prepaid fees the lender might charge. Shopping around for the best APR deal is another great way to find a lower APR. Some dealerships may offer special deals on newer vehicles such as 0 percent APR to incentivize buyers.
When shopping for a vehicle, keep your mind open to the ways in which you can save on both interest rates and APR — you may have more control over what you’ll pay than you think