Best Auto Loan Rates and Financing for June 2025

Investopedia found Bank of America to be the best overall auto lender. With reasonable rates (especially for used cars🍎) and welcoming features, like acceptance of cars up to 10 years old, it scored better than 15 other lenders. BofA is a great place to start car shopping, but check our other picks𒉰 to find options for a variety of circumstances.

Investopedia’s full-time research and editorial tꦛeams collected nearly 1,000 data points on 16 auto lenders from November 2024 into February 2025. Lenders were evaluated based on their loan costs, terms, requirements, and customer satisfaction, among other factors. Each lender was objectively scored and ranked to determine the best picks below.

Best Auto Loan Rates and Financing for June 2025

Best Overall, Best for New Car Loans: 澳洲幸运5官方开奖结果体彩网: Bank of America
Best for Low Rates: 澳洲幸运5官方开奖结果体彩网: Consumers Credit Union
Best for Bad Credit: 澳洲幸运5官方开奖结果体彩网: Ally Bank
Best for Used Car Loans, Best for Old Car Loans: 澳洲幸运5官方开奖结果体彩网: First Tech FCU
Best for Auto Refinance Loans: 澳洲幸运5官方开奖结果体彩网: LendingClub
Also Great for Low Rates: 澳洲幸运5官方开奖结果体彩网: NASA FCU
Also Great for Old Car Loans: 澳洲幸运5官方开奖结果体彩网: Capital One
Best for Customer Satisfaction: 澳洲幸运5官方开奖结果体彩网: Digital FCU

Best Overall, Best for New Car Loans : Bank of America

Investopedia's Rating

4.8

APR Range: 5.64%–28.00%
Loan Amounts: Minimum of $7,500
Loan Terms: 48–72 months

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Pros & Cons

Pros

Best overall new car loan score (except🍰 for military lenders)
High max. accepted mileage and༒ age for used car loans
Fast loan disbursement—within 1 business day

Cons

Doesn’t disclose credit or income requirements
Pre-qualification requires a Ba🗹nk of America login
No private party loans

Why We Chose It

Bank of America꧟ earned the highest overall score in our research into auto lenders, thanks in large part to its generous auto loan ra💖tes. It offers loans for new and used cars, along with refinance and lease buyout loans. BofA doesn’t provide loans for private party auto purchases—you must buy a vehicle from a dealership.

If your credit isn’t the best, the maximum annual percentage rate (APR) is the highest we found. With poor credit, you generally have to settle for a hi♐gh APR—if this is the case for you, try to pay off the loan as fast as possible to reduce the cost of interest. Bank of America doesn’t have a prepayment ꦿfee, although other auto lenders might.

On the other hand, ifꦕ you’ve got great credit you can secure a fairly low rate (but not a top-tier rate). And Bank of America Preferred Rewards members can get a rate discount of up to 0.50% (regardless of credit status).

Borrower Qualifications

Membership requirement: None
Minimum credit score: Not disclosed
Minimum credit history: Not disclosed
Minimum income requirement: Not disclosed
Maximum debt-to-income ratio: Not disclosed

Vehicle Qualifications

Loan options: New, used, refinance, lease buyout
Private party loans: Not allowed
Maximum loan-to-value ratio: Not disclosed
Maximum accepted mileage: 125,000
Maximum accepted age: 10 years

Best for Low Rates : Consumers Credit Union

Investopedia's Rating

3.9

APR Range: 3.99%–22.25%
Loan Amounts: $20,000–$55,000
Loan Terms: 36–84 months

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Pros & Cons

Pros

Best overall rate score for new, used, and refi minim𒁃um APRs
Lowest used car loan rates available
24/7 customer support

Cons

R♋elatively✱ restrictive loan amounts: $20,000–$55,000
Loans can’t be used 🦋for private party vehicle purchases
Minimum recommended credit score of 681

Why We Chose It

If you’ve got excellent credit, it makes sense to shop around for the absolute lowest rate you can get. Consumers Credit Union has low APRs all around, but especiall🐷y for used car loans—its rates for used cars are the lowest we found in our research.

New car loans: 3.99%–17.54%
Used car loans: 4.68%–22.25%
Refinance car loans: 3.99%–22.25%

You can pre-qualify and apply for a loan without becoming a member of Consumers Credit Union, but if you want to accept a loan offer you’ll need to become a member. That requires a $5 fee and a $5 deposit into a saꦫvings account, a relatively minor requirement when it comes to credit unions, and one that may be worth getting a low rate.

Borrower Qualifications

Membership requirement: Yes, $10 in total; must pay a $5 fee and open a new savings account with $5
Minimum credit score: 681
Minimum credit history: 5 years
Minimum income requirement: $3,000
Maximum debt-to-income ratio: 45%

Vehicle Qualifications

Loan options: New, used, refinance, cash out refinance
Private party loans: Not allowed
Maximum loan-to-value ratio: 115%
Maximum accepted mileage: 100,000
Maximum accepted age: 6 years

Best for Bad Credit : Ally Bank

Investopedia's Rating

3.8

APR Range: Not disclosed
Loan Amounts: Minimum of $5,000
Loan Terms: 12–84 months

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Pros & Cons

Pros

Low minimum recommended credit score of 520
High maximum loan-to-value ratio of 140%
Can choose repayment terms as short as 1 year

Cons

Can only be used for car purchases at certa𒁏in dealerships
Doesn’t allow private party purchases
Doesn’t disclose APR range

Why We Chose It

If you have poor credit, it can be difficult to find a𒉰 loan and you’ll generally have to accept a higher interest rate. But there are options, and it still makes sense to shop around. Ally is worth a look because its minimum recommended credit score is just 520 (according to a media rep), giving you a better-than-usual chance at approval, but keep in mind there are other borrower requirements to meet.

Ally provides new, used, and refinance loans, although there’s an important limitation to be aware of: You can🉐’t pre-qualify for new and used loans online, and you can only use an Ally auto loan to buy a vehicle from certain dealerships. That means you’ll need to visit a dealer to see if you qualify. Ally has a tool on its website to search for dealerships in your area, for a variety of different car makes. Use this to see if there are any partner dealers near you.

Ally does allow you to pre-qualify for auto refinance loans online. It 𓆏also provides cash-out refinancing and lease buyout loa𝔉ns, if you want to keep a car you’ve been leasing.

Borrower Qualifications

Membership requirement: No
Minimum credit score: 520
Minimum credit history: Not disclosed
Minimum income requirement: $2,000
Maximum debt-to-income ratio: Not disclosed

Vehicle Qualifications

Loan options: New, used, refinance, cash-out refinance, lease buyout
Private party loans: Not allowed
Maximum loan-to-value ratio: 140%
Maximum accepted mileage: 121,000
Maximum accepted age: Not disclosed

Best for Used Car Loans, Best for Old Car Loans : First Tech FCU

Investopedia's Rating

4.2

APR Range: 6.89%–18.00%
Loan Amounts: $1,000–$300,000
Loan Terms: 12–84 months

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Pros & Cons

Pros

Highest overall score for used car loans (except for military lenders🦹)
Low loan amount🦄s and short🎶 repayment terms available
Accepts cars up to 10 years old and with 150,000 mil♏🧸es

Cons

Must join credit union to get a loan
Doesn’t disclose credit requirements
Rates vary by state

Why We Chose It

First Tech Federal Credit Union earned the 🦹top spot for used car loans because it scored highly in a few key areas, especially used car loan terms (rates, amounts, etc.), maximum acceღpted mileage, and maximum accepted age.

Many lenders restrict the mileage and age of the vehicles you buy with their loans, and many require you to buy a vehic꧂le from a dealership. This limits the range of vehicles you can get quite a bit. But First Tech has limits that are about as high as they come—150,000 miles and 10 years old—and it allows you to buy vehicles from private🐲 parties.

🐷Consider First Tech as you shop for auto loan rates. Its rates aren’t the lowest we found, but its widely accessible loans could mean the difference between getting the car you want and settling for something else.

Borrower Qualifications

Membership requirement: Yes; can join First Tech by joining the Financial Fitness Association for $8
Minimum credit score: Not disclosed
Minimum credit history: Not disclosed
Minimum income requirement: Not disclosed
Maximum debt-to-income ratio: 50%

Vehicle Qualifications

Loan options: New, used, refinance, lease buyout
Private party loans: Allowed
Maximum loan-to-value ratio: Not disclosed
Maximum accepted mileage: 150,000
Maximum accepted age: 10 years

Best for Auto Refinance Loans : LendingClub

Investopedia's Rating

3.7

Refinance APR Range: 4.99%–22.99%
Refinance Loan Amounts: $4,000–$55,000
Refinance Loan Terms: 36–84 months

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Pros & Cons

Pros

Very low rates for auto refinance loans
Can refinance as little as $4,000
Loan-to-value ratio up to 140%

Cons

Doesn’t offer new or used car loans, only re♐finꦜance
Somewhat low maximum loan amount of $55,000

Why We Chose It

If you want to refina🐼nce your existing auto loan, check out LendingClub. It only offers refinanc𝓰e loans, but the rates are as low as you’ll find outside military-exclusive lenders like Navy Federal.

LendingClub’s low minimum loan amount ($4,000) means you can refinance and save some money even on a small loa🌜n or the remains of an old loan you’ve been paying off for a while. There’s no origination fee to cut into your savings.

The loan terms and q🏅ualifications arไe pretty lenient. The minimum recommended credit score is 600, and you can borrow up to 140% of the value of the vehicle. If you’ve got an older vehicle, that’s alright—you can refinance cars up to 10 years old and with up to 120,000 miles.

Borrower Qualifications

Membership requirement: None
Minimum credit score: 600
Minimum credit history: 3 tradelines
Minimum income requirement: $1,000
Maximum debt-to-income ratio: 70%

Vehicle Qualifications

Loan options: Refinance
Private party loans: Not available
Maximum loan-to-value ratio: 140%
Maximum accepted mileage: 120,000
Maximum accepted age: 10 years

Also Great for Low Rates : NASA FCU

Investopedia's Rating

4.0

澳洲幸运5官方开奖结果体彩网:NASA FCU

APR Range: 5.39%–18.00%
Loan Amounts: $5,000–$200,000
Loan Terms: 36–84 months

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Pros & Cons

Pros

Great ov🍸erall minimum APR score for new, used, an🍬d refi
High overall customer satisfaction rating
No fee to join the credit union

Cons

Doesn’t disclose credit requirements
Somewhat low maximum loan amount of $200,000

Why We Chose It

NASA FCU, despite what you may think from the name, is an excellent lender of auto loans to anyone—you just need to open a savings ac🍃count with at least $5. If you d♛o, you can access low rates and great terms on a variety of financial products, not just auto loans.

NASA FCU’s low auto loan rates are only beaten by a few other companies, among them some military-exclusive lenders. It offers a variety of loan types, including lease buyout loans and private party loans. The maximum loan-to-value ratio is only 100%, however, which is lower than the other lenders we researched; this means you may not be able to use the loan to pay for certain extra features or fees that co🦄me with a vehicle.

Investopedia’s research into customer satisfaction among auto lenders found th💖at NASA FCU earned one of the highest overall scores, with 4.3 points out of 5. This overall customer satisfaction score aggregates certain customer service features along with customer ratings from a vari🌟ety of sources.

Borrower Qualifications

Membership requirement: Yes. There is no fee to join, but you must hold $5 in a savings account
Minimum credit score: Not disclosed
Minimum credit history: Not disclosed
Minimum income requirement: Not disclosed
Maximum debt-to-income ratio: Not disclosed

Vehicle Qualifications

Loan options: New, used, refinance, cash-out refinance, lease buyout
Private party loans: Allowed
Maximum loan-to-value ratio: 100%
Maximum accepted mileage: 100,000
Maximum accepted age: Not disclosed

Also Great for Old Car Loans : Capital One

Investopedia's Rating

3.7

Logo for Capital One Bank

APR Range: Up to 22.00%
Loan Amounts: Minimum of $4,000
Loan Terms: 24–84 months

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Pros & Cons

Pros

Provides loans f🦩or cars up🌱 to 10 years old with up to 150,000 miles
Loan amounts 🍨as low as $4,000 for new and used cars
Can pre-qualify withou📖t being🉐 a Capital One customer

Cons

Doesn’t allow private party purchases
Minimum loan rates not disclosed
Credit requirements not disclosed

Why We Chose It

If you want to buy an older vehicle, you’ll need to find a🐲 lender that accommodates the age and mileage. Capital One is willing to cover more vehicles than most lenders, allowing cars up to 10 years old and with 150,000 miles. You’re limited to shopping at dealerships with Capital One, although the bank provides a car-buying service—Auto Navigator—to make this easy and help you find the right ride.

Some banks require you to be a customer to pre-qualify for an auto loan, making it harder to shop rates. Capital One doesn’t have that limitation, so y꧑ou can check your rates and search for a car all in the same pl🐎ace.

Some of Capital One’s terms differ slightly from one loan type to another. The lower limit for new and used auto loans is 🌺$4,000, for example, making it relatively easy to finance a cheaper old vehicle. But if you want to refinance you’ll need to borrow at least $7,500—more than most other lenders included in our research. Capital One doesn’t provide cash-out refinancing or lease buyout loans.

Borrower Qualifications

Membership requirement: No
Minimum credit score: Not disclosed
Minimum credit history: Not disclosed
Minimum income requirement: $1,500
Maximum debt-to-income ratio: Not disclosed

Vehicle Qualifications

Loan options: New, used, refinance
Private party loans: Not allowed
Maximum loan-to-value ratio: Not disclosed
Maximum accepted mileage: 150,000
Maximum accepted age: 10 years

Best for Customer Satisfaction : Digital FCU

Investopedia's Rating

3.5

APR Range: 5.49%–15.49%
Loan Amounts: Not disclosed
Loan Terms: 12–84 months

Apply Now

Pros & Cons

Pros

Highest overall customer 🌸satisfaction score (4.6 out ಌof 5)
High maximum LTV ratio of 130%
Allows private party vehicle purchases

Cons

Must join credit union to get a loan
Loan amounts are not disclosed

Why We Chose It

Digital Federal Credit Union (DCU) earned the highest score in Investopedia’s overall customer satisfaction rating—4.6 out of 5. This score aggregates a varie🍒ty of factors, including mobile app ratings, customer ratings, and customer service availability. DCU should be your first stop if you’re looking for a trusted, well-regarded lender with satisfied customers.

You can take out a loan for as little as a year, if you don’t have too much to finance, or as long as seven years. And you can cover up to 130% of the vehicle cost, if necessary, to help cover purchase fees. If you take out a loan for a fully electric vehicle, you’ll be eligible for a 0.25൲% rate discount.

DCU doesn’t disclose its loan amounts,ღ unfortunately. You’ll need to begin the application process to see them. And you’ll need to become a DCU member to accept a loan, although you don’t need to be a member to apply and check your terms.

Borrower Qualifications

Membership requirement: Yes, can become eligible to join DFCU with minimum $10 fee by joining Reach Out for Schools
Minimum credit score: Not disclosed
Minimum credit history: Not disclosed
Minimum income requirement: Not disclosed
Maximum debt-to-income ratio: Not disclosed

Vehicle Qualifications

Loan options: New, used, refinance, cash-out refinance, lease buyout
Private party loans: Allowed
Maximum loan-to-value ratio: 130%
Maximum accepted mileage: Not disclosed
Maximum accepted age: Not disclosed

Lender Scores by Category

Here’s how each lender above scored in our five main criteria categories. Each score is ouꦿt of a possible total of 5 points.

Cost of Loans	Loan Terms	Borrowing Requirements	Customer Satisfaction	Additional Features
4	0.9	1.7	3.7	3.1
3	1.6	3.3	1	2.7
1.4	2.1	1.7	2	4.4
1.8	3.3	3.3	3.6	1.7
1.6	1.2	0	3.1	4.7
2	2.6	3.3	4.4	1.6
0.5	2	1.7	4.2	4
1.6	1.8	5	4.5	1.4

In the News

Auto loan rates are related to the Federal Reserve's benchmark rate—if the Fed rate goes up, average auto loan rates usually will, as well. The Fed held 🍌rates steady for a third consecuti▨ve time at its May 7 meeting. Three rate cuts from September through December last year lowered the 澳洲幸运5官方开奖结果体彩网:federal funds rate by a full percentage point to a range of 4.25%–4.50%, its lowest range since February 2023.

The federal funds rate had been at a two-decade high aft꧃er 11 increases from March 2022 through July 2023 in an effort to bring down inflation. Further cuts are expected, which means interest rates (including auto lꩲoan rates) will decline.

Why You Can Trust Us

Invest🥃opedia was founded in 1999 and has been helping readers find the best auto loans since 2020. Investopedia’s research and editorial teams conducted independent, unbiased research into the auto loan industry, collecting nearly 1,000 data points on 16 auto lenders. That included information on interest rates, loan terms, borrower and vehicle requirements, and customer satisfaction. This information was used to objectively score and rank each lender to provide the best recommendat🧔ions above.

Military Lenders Provide Great Rates, If🐲 You’re😼 Eligible

Some lenders are exclusively available to people in the military or affiliated with the military. These lenders often offer excellent rates and terms, and if you’re eligible they should be near the top of your list when 澳洲幸运5官方开奖结果体彩网:rate shopping for a new car.

USAA and Navy Federal Credit Union are two popular options. Their membership requirements are mos💃tly the sa🎶me, although slight differences may exist. In general, you’re eligible to join if you fit into any of these categories:

Active duty, guard, reserve, or veteran military servicemember
Officer candidate in ROTC
Department of Defense civilian employee, contractor, or retiree
Have family members who are either in the military or a member of the bank or credit union

How Does An Auto Loan Work?

Whenever you purchase a new or used car, you have many ways to finance that purchase including purchasing it in cash or, if you don’t have enough money to buy it outright, taking out a personal or 澳洲幸运5官方开奖结果体彩网:auto loan.

Typically, you can get a better deal on financing your car with an auto loan because these loans are secured—unlike personal loans. With an auto loan, the car itself serves as collateral, so lenders take on less risk when extending an auto loan compared to a 澳洲幸运5官方开奖结果体彩网:personal loan.

You can get a car loan through a bank, 澳洲幸运5官方开奖结果体彩网:credit union, or an online lender or you can rely on your dealer to arrange a loan through a lender. Financing your car with an auto lꦦoan through a dealership may be more convenient, but it can also be pricier.

To determine the terms of a loan, a lender will look at factors like your 澳洲幸运5官方开奖结果体彩网:credit score and credit history. A lender will typically provide you with more favorable terms if you have a higher credit score and a long history ꦚof making payments on-time and in full♋.

You can understand the total cost of your new purchase by looking at details like the annual percentage rate (APR), the down payment, and the loan term. The APR refers to the annual interest rate in addition to any feeꦛs. Lenders will generally offer a l𝕴ower APR to borrowers with strong credit scores.

And while car loans are a type of installment loan where you make monthly payments that go towards paying down the prꦉincipal and interest, some car loans will require an upfront down payment, too, which is usually 10% to 20% of the car’s value.

Although not everyone can afford a large down payment, it can help save you money in the long run. More money down reduces the risk to the lender, so they may charge lower interes♌t rates.

Common Auto Loan Terms to Understand

Secured loan: Auto loans are a type of 澳洲幸运5官方开奖结果体彩网:secured loan, which means that the car itself serves as 澳洲幸运5官方开奖结果体彩网:collateral that can be seized in the event of a default or missed payments.
Down payment: A 澳洲幸运5官方开奖结果体彩网:down payment refers to the amount of money you pay upfront for a major purchase like a home or a car. The down payment is usually expressed as a percentage of the total cost of a purchase. Not all auto loans require down payments, but generally, the greater the down payment, the less you borrow and the more you save.
Interest rate: The 澳洲幸运5官方开奖结果体彩网:interest rate is the cost charged to borrowers for a loan. It’s represented as a percentage.
Annual percentage rate (APR): The APR is the interest rate plus fees. The interest rate and the APR may be the same if the lender doesn’t charge fees.
Principal: The 澳洲幸运5官方开奖结果体彩网:principal is the original amount of money you agree to borrow for a loan.
Loan term: This is how long you’ll have to pay off a loan—loan term lengths typically range from 24 months to 84 months with shorter terms generally offering lower interest rates than longer ones.
Credit score: A credit score is a three digit number that indicates a borrowers’ 澳洲幸运5官方开奖结果体彩网:creditworthiness. A credit score is calculated from information in your 澳洲幸运5官方开奖结果体彩网:credit report. Factors like your payment history, 澳洲幸运5官方开奖结果体彩网:credit utilization ratio, and your new credit applications are used to calculate your credit score. Generally, higher scores signal greater creditworthiness.

Types of Auto Loans

New car loan: New car loans are for financing purchases of new cars. New cars are typically more expensive than old cars and, therefore, may require higher monthly payments than used car loans. Lenders typically offer lower interest rates on these loans because new cars are lower risk than used cars.
Used car loan: Lenders will generally charge higher interest rates on used car loans compared to new car loans. This is because lenders consider used cars higher risk and charge a higher interest rate to compensate for that risk.
Auto loan refinance loan: An 澳洲幸运5官方开奖结果体彩网:auto refinance loan is an auto loan that replaces an existing auto loan. Borrowers may consider refinancing if interest rates have dropped, if they believe they can qualify for a lower rate, or they simply want different terms on their loan.
Lease buyout loan: If you’re not ready to purchase a car, you may consider leasing one. With a lease buyout loan, you rent a car for an extended period of time. Some car leases will offer you the option of purchasing the car at the end of the lease for a certain buyout price. If you don’t have enough money to buy the car outright, you can get a lease buyout loan to finance the purchase.

How to Apply for an Auto Loan

Understand your budget: To calculate how much you can spend on a monthly car payment, determine your monthly net income.Generally, experts suggest spending roughly 10% to 15% of your income on transportation costs. Note that this is a rule-of-thumb so it may not apply to everyone.
Figure out your credit score: Lenders will evaluate your credit score to determine the terms of your loan. Before applying for a loan, try boosting your score to qualify for a lower APR. For example, try paying off your credit card payments on-time and in full and keep your credit utilization ratio low—or the ratio of the amount of credit you use to the total amount you’re extended.
Shop around for loans: While it may be tempting to just opt for an auto loan through your dealer, try exploring what other loan options are available—other lenders may offer lower rates. Some lenders may also offer a prequalification option, which means you can see whether you qualify for a loan and what the terms of the loan are. (Note that even if you’re pre-qualified for a loan, you can still be denied). Additionally, try negotiating more favorable terms with the lender.
Apply: Once you’re ready to apply, collect all the necessary documents and information. You’ll typically be required to provide your name, income, a valid form of identification, your Social Security number (SSN), and more.

How We Find the Best Auto Loans

Investopedia’s full-time research and editorial teams conducted independent, comprehensive research into auto lenders from November 2024 into February 2025. 1𒐪6 popular auto lenders were included, and each one was evaluated on 63 criteria. Information was collected from lender websites, customer support, and media representatives. Each lender was scored and ranke🃏d objectively. Information not used for scoring was collected for background.

Evaluation criteria were broken down into the♊ following categories and given the a🀅ccompanying weights:

Cost of Loans: 34.0%
Loan Terms: 28.0%
Borrowing Requirements: 22.0%
Customer Experience: 10.0%
Additional Features: 6.0%

Investopedia’s full-time compliance team maintains the accuracy of information on this page to ensure our recommendations remain the best choices for their respective categor💖ies.