Auto Loan Rate

With an auto loan, you agree to repay a lender over a set term, typically three to six years, in exchange for them paying a dealership (or a private seller) so that you can get a car. You generally pay more than what you borrowed, which equates to profit for the lender. How much more you pay largely depends on your credit score.

auto loan rate

With a higher credit score, less of your paycheck will do a vanishing act. Since the lowest APRs (annual percentage rates) are offered to the borrowers with the highest credit scores, improving your credit score before applying for an auto loan can really be worth the effort.

The difference between the highest and lowest used-car APR in Q2 2022 was nearly 17 percentage points, according to Experian. On a 5-year loan for $25,000, for example, you could save nearly $12,700 over the life of the loan if you applied with a higher credit score.

Consumers Credit Union has a low starting rate, national reach and open membership. Plus, if you make automatic payments, you can receive a 0.25% rate reduction. Read our full Consumers Credit Union review.

LendingArts had one of the lowest average auto loan rates for drivers who refinanced on the LendingTree platform in the first half of 2022. The company does a soft credit pull to show you potential refinance offers from lenders and, once you choose an offer, that lender will do a hard credit pull to produce an official offer for your approval.

Its Auto Navigator feature can give a ballpark estimate of your auto loan without needing a hard credit pull. If you want a more solid idea of your car loan before you go to the dealer, consider getting a car loan preapproval. Read our full Capital One review.

The online lender LightStream offers no restrictions based on vehicle age, mileage, make or model, and the starting rate for new and used car loans are the same because these loans are unsecured. While most people shy away from unsecured car loans, thinking the APR will be high, LightStream offered one of the lowest average rates for prime and midprime credit scores on the LendingTree platform in the first half of 2022.

We examined closed LendingTree auto loans from H1 2022. We wanted to know: 1) which lenders consumers chose most often, and 2) which ones offered the lowest average APR. We also looked at the advertised starting car loan rates of large, national lenders to compare.

To find the best rates for those with military connections, we looked at rates offered by USAA Bank, Navy Federal Credit Union, Pentagon Federal Credit Union and Randolph-Brooks Federal Credit Union, and chose the one with the lowest advertised APR for a traditional new car loan not including any other discounts that may be available, such as breaks for using a car-buying service.

*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 5.99% APR with a term of 3 years would result in 36 monthly payments of $304.17. 2023 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

Yes, you can negotiate APR. Ask the dealer to beat the auto loan preapproval rate you got directly from a lender. Putting more money down or getting a cosigner could also help reduce the APR on your loan.

The average APR for an auto loan in H1 2022 was 9.33%, ranging from less than 4% for those with credit scores over 720, to an average over 15% for borrowers with scores lower than 560. Credit unions tend to offer some of the lowest starting rates.

Rhys has been editing and writing for Bankrate since late 2021. They are passionate about helping readers gain the confidence to take control of their finances by providing clear, well-researched information that breaks down otherwise complex topics into manageable bites.

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The increased Fed rate, sitting at 4.75 percent to 5 percent following the March meeting, will indirectly affect your rates. So even as sky-high vehicle prices have fallen 4 percent since its peak this past summer, the increase in interest rates will still result in a more expensive experience overall.

But researching your auto financing is just as important. There are many factors that can impact how much your monthly payment will be. The auto financing process begins with being informed about the whole experience, and we're here to make it as stress-free as possible, to help you get the auto financing you're looking for.

Onscreen disclosure:Vehicle financing provided by Bank of America. Credit and collateral are subject to approval. Terms and conditions apply. Automobile shopping content provided by automobile dealerships through a website provided by a third party not affiliated with Bank of America and is not available in all states. Bank of America is not responsible for any automobile content, products, or services.

If you're not sure yet which vehicle might be a good fit for you and your budget, Bank of America can help with that, too. Use our online tools to compare vehicle models and prices, find authorized dealers in your area, and apply for a loan for a specific vehicle.

Onscreen copy:Vehicle financing provided by Bank of America. Credit and collateral are subject to approval. Terms and conditions apply. Automobile shopping content provided by automobile dealerships through a website provided by a third party not affiliated with Bank of America and is not available in all states. Bank of America is not responsible for any automobile content, products, or services.

Our auto loan calculator can help you figure out how much financing you may need, and even estimate your monthly payment. Bank of America offers financing for new or used vehicles that are purchased from most franchised dealers, and a few independent dealers.

Onscreen copy:Franchise dealers sell new and used cars for auto manufacturers such as Ford, General Motors, Chrysler, Honda and others. Independent dealers are not affiliated with an auto manufacturer and may sell many different brands of vehicles. Bank of America does not finance vehicles purchased from independent dealers other than CarMax, Hertz Car Sales, Enterprise Car Sales and Carvana. All authorized dealers can be found using the dealer locator tool.

Onscreen disclosure:Before considering a lease buyout loan, you should review your lease agreement for the terms and conditions under which the lease can be terminated if it hasn't yet expired, particularly if there are any fees or expenses that may be due pursuant to the terms of the lease. Requests to cancel a loan will be processed as a loan payoff and require the outstanding loan balance to be paid in full including any accrued fees and interest. Refinancing may increase the total number of monthly payments and/or the total amount paid when compared to your current situation. Although your refinanced monthly payment may be lower, you should carefully consider the amount of any costs associated with refinancing such as any state taxes and titling fees as well as the potential increase in interest charges you may pay and the additional years needed to pay off your loan by refinancing. You should also consider whether refinancing may terminate any ancillary products included in the loan you are refinancing such as GAP insurance/waivers.

When you're ready, you can apply on your mobile device, online at bankofamerica.com, on the phone, or in a financial center. Regardless of how you apply, many decisions only take sixty seconds. You'll then be able to check the status of your application, and upload and electronically sign any documents needed to process your loan. Just make sure to agree to electronic delivery when applying.

The only way to truly know your rate is to complete an application. If approved, there are many factors, such as state of residence, loan amount and term, credit history, and type of vehicle that may cause your actual APR to differ from the advertised rate. 041b061a72