The Best Auto Loan Rates for New or Used Vehicles are myAutoloan, Consumers Credit Union, AutoPay, PenFed Credit Union and iLending Show
The best auto loan rates can save you thousands of dollars over the course of your loan. But with so many options to choose from, finding the right provider for your needs can be a challenge. We at the Home Media reviews team researched the top car loan providers, comparing interest rates, industry ratings and customer reviews to help you make an informed decision about financing your vehicle. Auto Loan Providers With the Best RatesBased on our research, these providers are among the top car loan lenders in the industry, and we’ve ranked them after evaluating their rates, reputations, availability, and customer service. Be sure to compare personalized quotes from lenders before making a decision.
When it comes to the best auto loan rates, each provider offers varying rates to car buyers in different situations. While one lender may offer lower interest rates for borrowers with good credit than other financial institutions, another provider may specialize in lending to people with bad credit. We’ve noted the starting APRs for top providers in the table above, but only borrowers with excellent credit will be eligible for rates that low. Each of our five best auto loan providers has its benefits, as well as drawbacks. Based on what we learned from studying the top auto lenders in the country, our team recommends the following providers to start your search for the best auto loan rates. #1 myAutoloan: Best Low-rate OptionStarting APR: 3.99% for new vehicles, 4.24% for used vehicles The myAutoloan online marketplace lets you comparison shop for the best auto loan interest rates from a number of lenders. You can enter personal information into the site’s online form and receive loan offers from lenders almost immediately, allowing you to compare offers side-by-side. We name it Best Low-Rate Option because of its availability and fantastic rates. Our research indicates that myAutoloan rates are low for the industry. Borrowers can access rates as low as 3.99% APR for new vehicles through the marketplace. With a minimum credit score requirement of 575, myAutoloan can be a good option for people with below-average credit. That said, the company’s $8,000 purchase minimum loan amount may mean you need to spend more on a car than you planned to get a loan from the company. In addition, myAutoloan won’t authorize a loan on a car more than 10 years old or with more than 125,000 miles on it. Some may find these restrictions a little too cumbersome. myAutoloan Pros and ConsmyAutoloan ReviewsWithin the auto financing industry, myAutoloan has a strong reputation. It holds an A+ rating from the BBB and is
accredited by the organization. Overall, customers rate myAutoloan favorably, giving it 4.2 out of 5.0 stars on Trustpilot. Reviews elsewhere are limited, perhaps due to the fact that myAutoloan only connects borrowers with lenders and doesn’t service loans itself. Positive customer reviews consistently praise the company’s easy application process and great rates. Customers reporting negative experiences, however, mention being sent too many ads after entering their information into the company’s website. Our team reached out to myAutoloan for a comment on these reviews but did not receive a response. #2 Consumers Credit Union: Most Flexible TermsStarting
APR: 4.69% for 2020 or newer vehicles, 4.94% for 2016 to 2019 vehicles Consumers Credit Union is an Illinois-based credit union that is now open to national membership. While the lender features average rates for the industry, it offers a wide range of terms and loan amounts, which is why our team awarded it Most Flexible Terms. The credit union has a lot of loan options. Its best auto loan rates start at 4.09% APR for members. As long as you qualify, you can borrow any amount with term lengths up to 84 months. It is important to note, however, that these rates are only for cars that were made in 2019 or later. The company has higher rates for older cars, with rates starting at 4.34% APR. While Consumers Credit Union is a membership-based organization and not a bank, anyone can become a member. All you need to do is provide a Social Security number or a tax identification number and pay a $5 nonrefundable fee to the Consumers Cooperative Association. Consumers Credit Union Pros and ConsConsumers Credit Union ReviewsConsumers Credit Union has a relatively strong standing in the industry. It is accredited by the BBB and holds an A+ rating from the organization. There aren’t many Consumers Credit Union customer reviews across review sites. However, the positive reviews we found praise the lender’s good customer experience, consistently great rates and low fees. Customers are also pleased to be part of a member-owned organization instead of a bank. That said, people who reported a negative experience with Consumers Credit Union report technical issues and delays with applications. Our team reached out to Consumers Credit Union for a comment on these reviews but did not receive a response. #3 AutoPay: Most Well-RoundedStarting APR: 2.99% for new vehicles, 1.99% for used vehicles AutoPay is an online lending marketplace that offers low interest rates for auto loans and auto loan refinancing. With its low rates and flexible terms, we award it the Most Well-Rounded of auto loan companies. Based on our research, borrowers with good credit can find APR as low as 2.99% for new and used vehicles from AutoPay’s network of lenders. Those with bad credit may still qualify for good rates, as the company tends to approve car loans for those with a minimum credit score of 575 or greater. With AutoPay, you also have greater flexibility with loan terms, which range from 24 to 96 months. This means that you can decide to pay off your auto loan quickly with a shorter term or space it out over several years. Auto Pay Pros and ConsAutoPay ReviewsWithin the lending industry, AutoPay has a solid reputation. The company holds an A+ rating from the BBB, with over 550 customers giving the lender a 4.4-star rating out of 5.0. Similarly, AutoPay has an “Excellent” rating on Trustpilot from over 450 customers. Positive AutoPay reviews center on the company’s excellent customer service, knowledgeable staff members, and its fast, transparent process. While in the minority, negative reviews mention high interest rates and issues with paperwork that led to unapproval for the car loan or refinance. Our team reached out to AutoPay for a comment on these reviews but did not receive a response. #4 PenFed Credit Union: Most Cohesive Process
Starting APR: 4.44% for new vehicles, 5.64% for used vehicles Pentagon Federal Credit Union, or PenFed, is a military credit union that offers competitive auto loan rates. We name it Most Cohesive Process for auto loans because of its car buying service and availability. While PenFed is primarily for military members and their families, it is also open to people who work for certain government agencies and nonprofit organizations. Even if you don’t fall into any of these groups, you can join by making a donation to an approved charity. At 4.44%, PenFed’s starting APR for new vehicles is one of the lowest we’ve seen from any of the auto loan providers we researched. To get that rate, however, you’ll need to buy a new car through PenFed’s car buying service. Like with most credit unions, PenFed members are eligible for special deals, such as discounts and reimbursements for shopping at partner dealerships. However, qualifying for a PenFed auto loan might be hard for some. The credit union only accepts borrowers with credit scores of 610 or higher. In addition, PenFed has a steep $29 charge for late loan payments. PenFed Credit Union Pros and ConsPenFed Credit Union ReviewsPenFed is not accredited by the Better Business Bureau (BBB) but is rated A+ by the organization. Customer ratings for PenFed Credit Union are among the highest in our research. The organization has an impressive 4.6-star rating out of 5.0 on Trustpilot. Customer ratings are considerably lower on the BBB website, however, where reviewers give PenFed 1.2 out of 5.0 stars. Positive reviews consistently mention a smooth and easy loan application process and low rates. Customers reporting negative experiences tend to mention slow processing times for loan applications. Our team reached out to PenFed Credit Union for a comment on these reviews but did not receive a response. #5 iLending: Most Popular MarketplaceStarting APR: 2.14% for auto refinance iLending has a reputation as a refinance auto loan specialist, making it a viable option for those looking to get lower interest rates and better terms for their vehicles. The company works with a network of lenders and financial institutions to offer some of the lowest APR rates we’ve seen in the industry, with APR starting as low as 2.14% for those with good credit. Since it functions as an auto refinance marketplace, the loan amount and terms will vary depending on which lender you choose to refinance with. iLending does not provide new or used auto loans at this time. iLending Pros and ConsiLending ReviewsiLending has an overall positive customer service reputation. The company has an A+ rating on the BBB, with a 4.8-star rating given from over 960 customer reviews. Similar reviews can be found on Trustpilot, where it has a 4.8-star rating out of 5.0 from over 700 reviews. The majority of positive reviews across both review sites mention the ease of iLending’s approval process, great customer service, and low auto refinance rates. While in the minority, negative reviews do exist. On the BBB, the company has had 61 complaints closed within the last three years, a small number compared to the amount of business the company does. The few complaints we found discuss problems with interest rates and higher loan amounts than the borrowers previously had. Our team reached out to iLending for a comment on these reviews but did not receive a response. What Are Current Auto Loan Rates?An auto loan rate is the annual cost of borrowing money for a vehicle purchase or refinance. It’s shown as a percentage, and it’s usually fixed for the duration of the loan term. Auto loan rates are highly dependent on your credit report. Borrowers with higher credit scores tend to receive lower interest rates than those with poor credit. The age of the vehicle being financed also has an impact, as rates are higher for used cars than for new cars. The table below shows the average rates for new and used cars based on buyers’ credit scores, according to Experian’s State of the Automotive Finance Market Q2 2022 report.
 Auto Loan Rates: What To Look ForWhen you’re looking for auto loan rates, it’s not just about APR. There are several factors you should consider when comparing auto loan quotes. Interest RatesYour interest rate is the percentage the lender charges you to borrow money. Your APR is your interest rate plus all loan fees. Only borrowers with excellent credit get approved for the lowest rates, so your rate will likely be higher than the starting APR a lender advertises. While other factors affect the total cost of your loan, APR is the most important. Even one-tenth of a percentage point could make a difference of hundreds or even thousands of dollars over the course of your loan. Loan TermAlso referred to as term length, your loan term is the amount of time you have to repay your loan. Most auto loans have term lengths of up to 72 or 84 months, but some can extend even longer. The longer the length of the loan, the lower your monthly payments will be. However, you’ll pay more in interest over the life of your loan. Longer loan terms typically come with higher interest rates, too. DiscountsSome lenders offer rate discounts on their loan products. One common discount is a reduction of your APR when you sign up for automatic payments from your bank account or credit card. Based on our research, providers usually offer to take 0.5% off of your APR for signing up for autopay. Fees and PenaltiesLenders often charge fees or penalties for various things, such as missing a car payment or paying late. Some lenders charge a fee for paying your car loan off early, known as a prepayment penalty. These fees and penalties are usually tucked away in the fine print of a loan contract, so read everything carefully before signing. Auto Loan CalculatorNew LoanRefinance LoanPurchase Loan CalculatorPrice of the car you want $ Length of loan(months) 12 BreakdownCar price $ 0 Down payment $ 0 Length of loan (months) 0 Annual interest rate % 0 Total interest paid $ 0 Get Best RatesBreakdownLoan Amount $ 0 Current Payment $ 0 New Payment $ 0 Monthly Savings $ 0 Total Savings $ 0 Refinance CalculatorRemaining Loan Terms in Months New Loan Terms in Months 12 How Do Lenders Determine Your Auto Loan Rate?Much like insurance companies, lenders determine auto loan rates based on information about you and your vehicle. Here are some of the factors that can affect your car loan rate:
Be sure to compare auto loan quotes from lenders before making a decision. Some lenders may weigh factors such as your credit score differently than others. Do the math and look at the total cost of your loan over its lifetime, and not just the APR. How To Apply for an Auto LoanAlthough there are some small differences in how you apply for an auto loan depending on the lender, the process is mostly consistent. Here’s a step-by-step guide to applying for an auto loan:
Best Auto Loan Rate: ConclusionYou can find the best auto loan rates through various banks, credit unions, online lenders, and dealers. There are also many factors that affect your interest rates and different methods for you to get the lowest rates possible. We encourage you to shop around and compare your options to find the best auto loan for you. Below are some frequently asked questions and answers about the best auto loan rates: Best Car Loan Rates: FAQBelow are some frequently asked questions and answers about the best auto loan rates: Our MethodologyBecause consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best auto loan companies. We collected data on dozens of loan providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list. Here are the factors our ratings take into account:
*Data accurate at time of publication. What is a good interest rate on a car for 72 months?The typical term length for auto loans is 63 months, with loans of 72 and 84 months becoming increasingly common.
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Average Interest Rates by Term Length.. Is it smart to do a 72 month car loan?Is a 72-month car loan worth it? Because of the high interest rates and risk of going upside down, most experts agree that a 72-month loan isn't an ideal choice. Experts recommend that borrowers take out a shorter loan. And for an optimal interest rate, a loan term fewer than 60 months is a better way to go.
What is an acceptable interest rate for car loan?The average auto loan interest rate is 4.33% for new cars and 8.62% for used cars, according to Experian's State of the Automotive Finance Market report for the second quarter of 2022. With a credit score above 780, you'll have the best shot to get a rate below 3% for new cars.
What is the average interest rate on a car loan 2022?People with good credit have an average rate of 11.19% this month, which results in total interest of $4,964. Borrowers with fair credit and an average interest rate of 15.65% would pay $7,167 in interest over the life of a five-year loan.
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What is a good interest rate for a 72 month car loan
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