Auto Loan Finder

We’ve compared over 75 of America’s leading lenders to help you find the best available deal.

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Name	Product	Filter Values	Minimum credit score	APR	Loan term	Requirements
Carvana			No minimum credit score	3.9% to 27.9%	Varies	18+ years old, annual income of $4,000+, no active bankruptcies	Get pre-qualified for used car financing and receive competitive, personalized rates.	See your rate More Info	Compare	loading Fetching your data...
car.Loan.com Car Loans			300	Varies by network lender	Varies by lender	Must be a US citizen with a current US address and employed full-time or have guaranteed fixed income.	Apply with a simple online application to get paired with a local auto lender. No credit and bad credit accepted.	See your rate More Info	Compare	loading Fetching your data...
CarsDirect auto loans				Varies by network lender	Varies by network lender	Must provide proof of income, proof of residence, and proof of insurance.	Save time and effort with this lending service specializing in beginner-friendly or subprime car loan.	See your rate More Info	Compare	loading Fetching your data...
Auto Credit Express Car Loans			300	Varies	Varies	Must be employed full-time or have guaranteed fixed income of at least $1,500/month and be a current resident of the US or Canada.	Get connected with an auto lender near you, even if you have bad credit.	See your rate More Info	Compare	loading Fetching your data...
Monevo Auto Loans			500	3.99% to 35.99%	3 months to 12 years	Credit score of 500+, legal US resident and ages 18+.	Quickly compare multiple online lenders with competitive rates depending on your credit.	See your rate More Info	Compare	loading Fetching your data...
LightStream Auto Loans			Good to excellent credit	Competitive	2 to 7 years	Good or excellent credit, enough income or assets to afford a new loan, US citizen or permanent resident, 18+ years old	Quick car loans from $5,000 to $100,000 with competitive rates for borrowers with strong credit.	See your rate More Info	Compare	loading Fetching your data...
LendingTree			Good to excellent credit	Starting at 3.09%	Varies by lender	18+ years old, good to excellent credit, US citizen	Compare multiple financing options for auto refinance, new car purchase, used car purchase and lease buy out.	See your rate More Info	Compare	loading Fetching your data...

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Find a lender in our directory of 85+ auto loan reviews

How do car loans work?

A car loan is a type of financing used specifically to purchase a new or used car. After buying the car, you’ll make monthly payments of both principal and interest until the loan is fully paid off. Auto loans are usually secured loans — the car itself is used as collateral and can be repossessed if you don’t make payments.

How much you can borrow and what interest rate you get depends on the lender and your personal financial situation. The best way to ensure you’re getting the best deal available to you is to compare offers from multiple lenders before signing on to any car loan.

LEARN MORE: What is an auto loan?

How much do car loans cost?

When it comes to how much you’ll pay for financing, you need to factor in both ongoing costs built into the loan and upfront costs.

Ongoing costs

• Interest rate. The average car loan rate is around 7%. The lowest rates hover around 3%, though these are reserved for individuals with excellent credit and a low debt-to-income ratio. Borrowers with poor credit usually see rates in the double digits.
• Fees. Some lenders charge an origination fee of 1% to 5% of the loan amount. Your loan’s APR is interest and fees expressed as a percentage.

In addition to APR, the length of your loan term also affects the overall cost. Your loan term is the amount of time you have to pay off your loan. A short loan term generally results in higher monthly payments, but a lower total loan cost. A longer loan term gives you lower monthly payments, though you’ll ultimately pay more in interest.

Upfront costs

After your APR and term, you’ll want to pay attention to how much you’ll have to pay up front and in taxes:

• Down payment. How much you’re expected to put down affects the immediate cost of your car loan. Expect to pay 10% to 20% of the cost of your vehicle up front.
• Sales tax. Each state requires different sales tax, typically available on your local DMV site. Make sure to factor in sales taxes when estimating the cost of your car.

What about 0% APR financing?

Some dealerships offer interest-free financing, but it’s not always easy to get. Keep these drawbacks in mind before signing on to 0% APR financing:

• It’s a marketing tool. Generally, interest-free financing is a marketing tool that manufacturers use to bring in customers.
• Not everyone is eligible. You need to meet tough credit and income standards to qualify — only around 10% of applicants actually qualify for the 0% rate.
• Higher monthly payments. These loans tend to be shorter — often no more than 36 months — translating into high monthly payments.
• Less room to negotiate. This type of financing tends to come with a fixed price, and you often can’t qualify for a cashback rebate.
• Your deal might be canceled. You might have to pay full interest if you miss just one payment.

Compare car loans

Where can I get a car loan?

Back in the day, your financing options were limited to dealerships and affiliated lenders.

Now you have more options beyond traditional financial institutions, including online upstarts competing for your business.

• Banks. Chances are that your bank offers auto financing or a personal loan you can use to purchase a new car. It’s a relatively hands-off experience, and only applicants with good credit typically qualify.
• Credit unions. Credit unions often offer financing with lower rates and more lenient credit requirements. But you need to join to qualify, which can add time to the process.
• Online lenders. Online loan providers can offer faster funding for people with damaged credit or who are new to auto financing. Some can also help you find a car at a dealership.
• Online connection services. Loan connection services could be an ideal option if you have bad credit, since many offer loans with low or no credit requirements — though it won’t be cheap.
• Dealerships. You can always try to get financing directly from your dealer, though you might need to become a master negotiator to dodge typical dealership tactics.

How to compare car loans

Before you compare lenders, calculate how much you can afford to pay for a down payment, monthly repayments, any fees and your loan’s overall cost. Look up your state’s taxes and fees associated with purchasing a car, and add them to the cost of each lender you’re considering.

1. Check if you’re eligible.
   There’s no point in applying for a loan if you and your car don’t meet the lender’s minimum requirements. You can typically find these requirements on the lender’s website or in online reviews.
2. Know how much you can borrow.
   Does the lender offer loans that cover the total cost of a car you’re interested in — and can afford?
3. Find out the interest rate.
   A high minimum advertised interest rate isn’t the best sign, and a refusal to disclose interest rates can be even worse. It could mean that rates are so high, the lenders would rather not advertise them.
4. Understand the fees.
   On top of dealership and state fees associated with buying a car, some lenders charge fees for taking out a loan.
5. Decide if the loan term fits your budget.
   Does your lender offer terms you can afford after you factor in APR and other costs involved in getting a new car?
6. Consider the required down payment.
   A 10% down payment is standard, but some lenders charge more. Go for a lender that offers a down payment that fits your budget.
7. Read customer reviews online.
   Quickly scan online forums and review sites to see what people say about each lender. Are interest rates high? Do people have trouble making repayments? If anything sounds sneaky, run.
8. See if you’re comfortable with the payment policies.
   Find out if you’ll be able to repay your car loan early without penalty or if you can make additional payments without being charged a fee. These features can save you money if you plan on paying the loan off ahead of time.
9. Learn about additional services offered.
   Some lenders hold your hand throughout the process of getting financing, and others don’t. Consider the help if you don’t know what you’re doing — but also ask: Is the lender genuinely helpful or just pushing you into partners’ laps. If information isn’t available online, it’s worth calling a customer service representative to get a ballpark answer.

How do I apply for a car loan?

The car loan application process can vary depending on the type of financing you choose. Starting the process online with a bank or online lender involves more steps, but you have the advantage of getting preapproved for the loan and taking that offer to multiple dealerships. Although starting at the dealership is quicker, you lose some negotiating power.

LEARN MORE: How to get a car loan in 7 steps

What happens during the application process

Before you apply, check that you know these 6 pieces of information …

• How much you can afford for a down payment
• How much you want to pay each month
• Your state’s required taxes and fees
• Your credit score
• Which vehicle you want to buy
• The lender’s eligibility requirements

Have these three documents handy …

• Your driver’s license
• Your insurance card
• Employment verification — tax returns or recent pay stubs

I got my car loan. What happens next?

So, you’ve finalized the deal that got you behind the driver’s seat. Now it’s time to start paying off your car loan. If it’s an option with your lender, set up autopay to save time — and memory space — you would spend making manual repayments each month. Some lenders even offer a discount off your interest rate for signing up for automatic repayments.

Keep track of your personal account and loan balance to make sure everything’s going smoothly — sometimes even automated systems make mistakes. Contact customer service if you notice anything off.

Didn’t get the loan? Find out why your application was rejected.

Frequently asked questions

• What if I already have a car loan, but I'm struggling to make my car payment?

  While a car loan won’t be much help if you’re struggling to make your car payment, you might want to try refinancing your car loan with a different lender. If you’re able to qualify for a lower interest rate or longer term, you can lower your monthly repayments.

  Otherwise, if you’re desperate for funds to pay your car payment so you don’t default, a personal loan may be able to help. However, this is best saved as a last resort, since you’ll end up paying two times the interest if you have to borrow to pay back a loan.

  If you have no other option, check out our best personal loans page to find a lender that might fit your needs.

• How easy is it to get a car loan?

  How easy it is to qualify for a car loan depends on several factors. These include your creditworthiness, income and how much you can afford to pay for a down payment. If you have strong credit and enough disposable income to afford a down payment plus monthly repayments, getting approved isn’t difficult.

  The state of the economy can also affect how easy it is to get a car loan. If the economy is doing poorly and you work in an industry that’s experiencing a lot of layoffs, lenders might be more cautious about offering you a car loan. On the flip side, if the economy is doing well, lenders are typically less concerned about you losing your job and could be more willing to approve you with favorable rates.

• Will shopping for a car loan affect my credit score?

  Credit scoring systems usually count multiple auto loan inquiries within a certain timeframe — typically two weeks — as one. One inquiry may cause a small, temporary drop in your credit score. But it’s better than multiple inquiries.

  5 reasons to shop around for a car loan before hitting the dealership

• What's the loan-to-value (LTV) ratio on a car loan?

  This is the value of your loan divided by the cash value of your car expressed as a percentage. For example, if you got an $8,000 car loan for a $10,000 car, the LTV would be 80%.

  The LTV tells you how much of the price tag your lender will cover and how much of a down payment you’re required to make. On a car loan with an 80% LTV, you’d have to make a 20% down payment.

• Are car loans secured loans?

  Generally, yes. Most car loans are secured with the value of your car, which can be repossessed if you stop making repayments. In fact, you typically don’t own your car’s title until you’ve paid off your loan entirely. You can learn more about the different types of car loans and how each works with our guide.

• Should I lease my car instead of buying it?

  Leasing is ideal if you want to drive a new car every two or three years – just remember you’ll never have ownership of the vehicle. Repayments will generally be lower on lease agreements, but they’re harder to get out of than just selling a car you’re financing.

• Do I have to be a US citizen to apply for a loan?

  No, resident or non-resident aliens can apply for loans with some banks or dealerships that offer financing.

• Do I need a down payment for a car loan?

  It depends on the lender you’re applying with. Some car loan providers don’t require a down payment at all, while others will ask for anywhere from 10% to 20% of your car’s sticker price up front. Typically, how large of a down payment you have to make is determined by the strength of your credit history.

  LEARN MORE: Compare car loan providers that don’t require a down payment

• I have bad credit. Do I need a cosigner to take out an auto loan?

  Not necessarily. Some providers specialize in bad-credit car loans, though these typically come with rates in the double digits. You may also qualify for a car loan without a cosigner if other aspects of your application are strong, such as having a consistent income or large down payment saved up.

• Can I refinance my auto loan?

  Yes. Refinancing can offer you a better rate and lower repayments, and is an option available from many lenders such as LendingClub.