Best Auto Loan Rates in December 2024

Credit union car loans tend to offer the lowest rates, and SFCU is no exception. Its rates are especially low on short-term car loans. At 3.50%, rates on 12-month terms are twice as cheap as they are on SFCU’s 84-month terms.

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 doesn’t offer prequalification so 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 Tenn., Ky., or Miss.

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 by opting for direct deposit into an Active Duty Checking account.

Still, like many other car loan lenders, NFCU doesn’t specify 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.

If you want to compare car prices and get a low rate on an auto loan in one step, PenFed might be for you.

By using its free car-buying service PenFed will give you a reduced rate, starting at 4.44%. And thanks to a partnership with TrueCar, it can help you find your next ride at a price you can afford. The service also runs special offers (such as bonus cash) on select car purchases.

Like with any credit union auto loan, PenFed requires you to join before you can borrow. Still, it’s easy to join since membership is open to everyone. Also, note that PenFed’s new car auto loan rates start at 5.24% if you don’t use its car-buying service.

Some credit unions only extend membership to certain groups (Navy Federal’s military requirement, for instance). That’s not true for PenFed. Although PenFed is short for Pentagon Federal Credit Union, its 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.

We chose Capital One for best overall car loan for several reasons. For one, it offers car loans to both good and bad-credit borrowers. While Capital One doesn’t share its minimum credit score requirement, according to LendingTree data, it may approve you with a score as low as 530. And if you have exceptional credit (800+), you could get a competitive rate of 6.09%.

With both prequalification and preapproved car loans, Capital One has options no matter where you are in the car-buying process. Prequalification is less exact, but it doesn’t hurt your credit. Preapproved car loans are more accurate but require a hard credit pull.

That said, Capital One won’t finance a vehicle purchase from just anywhere — you have to buy from a partner dealer.

You could be eligible for a car loan through Capital One as long as you have a credit score of at least 530. You can prequalify on Capital One’s website to get an idea of where you stand.

Auto financing from a big bank can have its perks. Compared to small, regional banks, large banks tend to have more digital presence. Case in point — Bank of America has an auto loan application that’s specifically designed for mobile. It also offers car loans nationwide.

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 account with a starting balance of $20,000.

To get a Bank of America auto 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 for personal use only
• Not be a commercial, heavy-duty truck or van
• Not have a salvage or branded title

Most lenders charge a higher APR on used car loans, but not 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.

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

With some lenders, you’ll need to wait for your loan check to come in the mail. Not with LightStream.

As long as LightStream approves you by 2:30 p.m. EST on a business day, you could get your money on the same day that you applied. LightStream also doesn’t require appraisals and it doesn’t have any vehicle restrictions.

However, LightStream auto loans are unsecured. This means it doesn’t use your car as collateral (as is the case on a traditional auto loan). In trade, LightStream’s rates are a little higher than others on this list. Collateral loans typically come with cheaper rates because they are less risky for the lender.

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

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 (19 in Alabama and Georgia)
• Have no active bankruptcies
• Make at least $5,100 a year

Buying a car from a private party instead of a dealership can save you money, but not all lenders fund these types of purchases. 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.

PNC Bank doesn’t offer prequalification. If you want to check rates, you’ll have to take a hard credit hit.

You can formally apply online for most of PNC’s auto loans. However, if you’re getting a private-party auto loan, you need to go to a branch. Either way, you don’t need to be a PNC member to borrow.

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, all with no impact to your credit score. Better yet, it works with borrowers with as low as 550.

Since Autopay doesn’t specify APRs, you’ll need to prequalify to see what kind of rates you might get from its partners. Associated fees can also be hard to budget for since they vary by lender.

Autopay is a loan marketplace that connects borrowers to partner lenders and financial institutions. These partners all have different eligibility requirements.

To use the marketplace, you must have a credit score of at least 550 and make $2,500 per month. Your vehicle must be less than 10 years old and have no more than 150,000 miles on it. From there, you can prequalify to see what lenders you might be eligible for.

Chase Bank can make it easy to buy a car from a partner lender near you. Just get prequalified online. After, it will send your prequalification offer directly to the dealer so you don’t have to mess with paperwork. Plus, Chase doesn’t require a down payment and you don’t need to know exactly what car you want before prequalifying.

Unfortunately, you can’t use Chase at all car dealers. It has to be a part of the Chase network. The good news is that Chase partners with thousands of dealers countrywide. But because it doesn’t advertise its rates, you must prequalify to see what APRs it offers.

To get an auto financing with Chase, the car you’re buying 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

You don’t need to be a current Chase customer to get an auto loan.