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Keep your repayments down with a low interest rate car loan.

You don’t have to spend big to get financial help to buy a car. When you’re choosing a loan, your best option is with the provider that gives you the lowest interest rate. It pays to compare lenders like banks, credit unions and private lenders, so keep reading to find out how to get the lowest interest rate loan for your new or used car.
car.Loan.com Car Loans

car.Loan.com Car Loans

Get matched with a local car dealership to finance your car purchase.

  • Specializing in 'buy here, pay here' car loans. No banks or credit unions.
  • Typically hear back from a rep within 24 hours.
  • Free loan-matching service. No obligation offers.
  • No minimum credit score required.

    5 tips to get a low-interest car loan

    Low-Interest rates are usually reserved for those with good credit and regular income. Here are five ways you can get the lowest rates possible for your next car loan.

    1. Have a stable job

    A bank is more likely to view you as a financially stable customer if you’ve held down the same job for several years — changing employers often can signal instability.

    2. Maintain a good credit history

    You’re far more likely to get a good deal and a cheaper car loan with a good credit history. To do so, make on-time, full payments each month and pay attention to your credit utilization ratio.

    3. Offer a deposit

    Lots of lenders are willing to lend you the full amount to purchase a car. But if you can afford a cash deposit or have a car to trade-in, you’ll borrow less and get a lower interest rate.

    4. Shop around

    Never accept the first low-interest car loan offer you see. Always take the time to shop around and compare what else is available. Be prepared to ask questions about loan terms, whether the rate is fixed or variable and if there are any prepayment penalties.

    5. Negotiate

    If you’ve already done some research and you know what other lenders are offering, use this information as ammunition to strengthen your negotiations. Ask about discounts on your interest rate and if they’ll waive any fees to win your business.

    a note about advertised aprs

    Just because you see a low-interest rate advertised for a car loan with one particular lender, don’t automatically think that’s how much you’ll end up paying. Those ultra-cheap interest rates may only be available to you if you have excellent credit or if you are buying a certain type of car.

    Compare car loans by APR and loan term

    Need more information? Check out the details in the car loans APR table below.

    Loan ProviderAPR rangeLoan term lengths
    Auto Credit ExpressVaries by lenderTypically 3 to 6 years
    car.Loan.com0% to 25% depending on state, vehicle type and credit history.Varies by lender
    myAutoloan.comFrom 2.49%24 to 84 months
    LendingTreeFrom 2.29%Typically 1 to 7 years
    CarsDirectVaries by lenderVaries by lender
    SpringboardAutoFrom 7%Up to 72 months
    Bluesky Auto FinanceFrom 2.99%24 to 72 months
    RoadLoansNo estimates until you applyUp to 72 months
    CarFinance.comFrom 4.99%Up to 72 months

    How much will a low interest rate car loan cost?

    Low interest car loans come with a few costs, but each individual loan will differ depending on the lender you apply with.

    Here’s are some fees to watch out for:

    • The origination fee. This is the cost to set up your car loan. Lenders usually add this fee into your loan amount to be paid off with the rest of your principal.
    • Other monthly fees. Some loans could have maintenance fees to keep your account open.
    • Early or additional repayment fees. If you repay your loan early or make additional payments you may be charged a fee to make up for the loss of interest on your loan.
    • Late payment fees. Set up autopay to avoid the fee for late or missed payments.

    Five- vs seven-year loan term

    Let’s assume you want to borrow $20,000. Over a five-year term you might be quoted an 8% interest rate, but you’re offered a 7.5% rate if you accept a seven-year loan term. Let’s see how it would work out.

    Low interest loan details8% interest rate7.5% interest rate
    Loan amount
    $20,000
    $20,000
    Loan term
    5 years
    7 years
    Monthly payment
    $405.53
    $306.77
    Total interest paid
    $4,331.80
    $5,768.68

    If you choose the 7.5% interest rate your payments are almost $100 per month cheaper. This can be appealing because it’s obviously more budget-friendly. Unfortunately, even with the cheaper interest rate you end up paying more than $1,436 in additional interest charges.

    One option is making additional payments and paying off your car loan sooner, but check to see if you’ll be charged an early repayment fee that wipes out any savings you thought you were getting.

    Compare car loans

    Rates last updated July 22nd, 2018

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    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Minimum Credit Score Term of Loan Requirements
    car.Loan.com Car Loans
    Apply with a simple online application to get paired with a local auto lender. No credit and bad credit accepted.
    300
    Varies by lender
    Must be at least 18 years old, a US citizen with a current US address and employed full-time or have guaranteed fixed income.
    Auto Credit Express Car Loans
    Get connected with an auto lender near you, even if you have bad credit.
    300
    Typically 3 to 6 years
    Must be at least 18 years old and a current resident of the US or Canada. Must be employed full-time or have guaranteed fixed income of at least $1,500/month.
    LendingClub Auto Refinancing
    Lower your monthly car payments and save on interest through a fast and easy online application process.
    Fair or poor credit
    Minimum of 2 years
    Car must be less than 10 years old with fewer than 120,000 miles. Current loan must have a balance between $5,000 and $55,000 and at least 24 months left in its term.
    myAutoloan.com Car Loans
    Get up to four offers in minutes through one simple application. Multiple financing types available including new cars, used cars and refinancing.
    550
    24 to 84 months
    Must be at least 18+ years old; have a Social Security number; make $24,000+/year; have no open bankruptcies.
    LendingTree Auto Loans
    Compare multiple financing options for auto refinance, new car purchase, used car purchase and lease buy out.
    670
    Typically 1 to 7 years
    Must be a US citizen and 18+ years old. Must have good to excellent credit.
    Capital One Auto Financing
    You could qualify for a car loan of up to 40000, but not all dealers accept this bank's financing.
    Good to excellent credit
    36 to 72 months
    At least 18 years old, have a valid street address, have existing Capital One accounts in good standing. Car must be a 2006 model or newer with less than 120,000 miles.
    Wells Fargo Auto Loans
    Auto loans with high loan amounts to cover your car purchase or refinancing needs.
    Good to excellent credit
    1 to 6 years
    Your income and assets must support your existing debt obligations and the desired loan amount.

    Compare up to 4 providers

    What factors influence interest rates?

    Buying a brand new car might get you a lower interest rate, but a new car might not be what you need — or can afford. Here are some factors that can influence the interest rate you pay, even for a car to get you from point A to point B.

    • Secured or unsecured loan. These loans are cheaper than unsecured loans becuase the car uses your car as security for the loan.
    • Fixed or variable interest rate. You’ll usually find that the variable rate offered is usually cheaper than the fixed rate because it might fluctuate throughout the loan term.
    • Age of the car. This determines the type of low interest car loan you’re eligible for. When it comes to used cars, some lenders won’t approve loans for cars with too many miles or are 10 to 20 years or older. Cars older than 20 years may need to be bought with a personal loan instead.
    • The loan term length. Calculate your monthly payments over a three-year, five-year and seven-year term to make sure you can keep up with payments. However, with longer terms, you’ll pay more in interest.
    • Employment status. If you have a stable employment history and you can show documentation to verify your income, you’ll typically qualify for a low interest rate car loan. However, if you’re self-employed and you can’t verify a source of income, you could pay a slightly higher rate.
    • Your credit history. If you have poor credit history, it’s likely you won’t qualify for those really low advertised rates. Your search for car loans may be limited to higher interest rates until you can improve your score.
    • If brokerage fees are charged. If you’re getting a car loan through a broker or car dealership, you might be expected to pay brokerage fees. Some brokers charge a percentage or a flat free ranging from $200 to $500.

    Bottom line

    The best loan for you will be the one offered with the lowest interest rate and minimal extra costs. Check what fees are being charged for your loan and ask them to be reduced. If you can’t get them reduced, shop around elsewhere for a more competitive deal and always compare your car loan options before you apply.

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