Best companies for affordable auto loan rates in 2021
| Lender /Marketplace | Minimum Credit Score | Starting APR | Loan Amount | Term Length |
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| AutoPay | 600 | 1.99% | $2,500–$100,000 | 24–84 months |
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| Bank of America | Not specified | 2.89% | $7,500+ | 48–72 months |
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| Boro | None | 6% | $5,000+ | 12–60 months |
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| Capital One | None | 2.99% | $4,000–$50,000 | 24–84 months |
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| Consumers Credit Union | 620 | 2.69% | $5,000–$150,000 | 6–84 months |
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| Carvana | Not specified | 3.9% | $1,000+ | 36–72 months |
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| LightStream | 660 | 2.49% with autopay | $5,000–$100,000 | 24–84 months |
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| MyAutoLoan | 575 | 2.24% | $8,000+ | 24–72 months |
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| Navy Federal | None | 1.79% | $250+ | Custom |
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| PenFed | 610 | 1.39% | Up to $100,000 | 36–84 months |
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Top 10 Auto Loan Companies by Starting APR
AutoPay: Best for Refinancing
AutoPay is an online loan comparison tool, rather than a lender, that can help you get low APRs for refinancing your auto loan. You’ll need a minimum credit score of 600 and a minimum monthly income of $2,000 to qualify. You also won’t be able to get a loan for a car older than 11 years or with more than 125,000 miles on it. Loans are available in amounts ranging from $2,500 to $100,000, with 24- to 84-month terms and APRs ranging from 1.99 to 17.99 percent. Keep in mind the lowest rates are reserved for customers with a 720 credit score or above. You can get prequalification from AutoPay without hurting your credit score.
Bank of America: Best for Used Car Loans
Getting a loan from Bank of America gives you the option to apply in person or online. It offers very competitive rates on used car loans, as low as 2.89 percent with a 60-month term. Preferred reward members can also get a rate discount. New car loans start at 2.59 percent APR, and it also offers lease buyouts and private party loans. There’s no prepayment penalty on any of the loan products. However, there are some vehicle restrictions, and the minimum loan amount is $7,500. A down payment may be required for some borrowers.
Boro: Best for College Students
If you’re enrolled in a U.S. college or university or graduated in the last three years, Boro could be your best option for auto financing. That’s especially true if you have poor credit or no credit history since Boro doesn’t consider your credit score, nor does it require a cosigner. There are minimum GPA eligibility requirements, however. There’s an easy online loan application, and you don’t need to have selected your vehicle before applying. You’ll need to borrow at least $5,000 with no upper limit, and there are restrictions on older vehicles. Boro also isn’t offered in all states. If you have good credit, you may want to look elsewhere since APRs start at 6 percent on Boro auto loans and the average rate is just above 10 percent. Read our Boro review for more details.
Capital One: Best for Finding a Car
Capital One auto loans are only available at participating dealerships, so it doesn’t have loan options for private party purchases. But with over 12,000 dealers to choose from, you’ll likely be able to find the vehicle you’re looking for, especially since Capital One ’s Auto Navigator helps you search for cars that fit your budget and save your choices to take with you to the dealership. From there, you can get customized prequalification offers for each car you’re interested in. There’s no minimum credit score, and APRs start at 2.99 percent, with loan amounts ranging from $4,000 to $50,000 and terms ranging from 24 to 84 months.
Consumers Credit Union: Best for No Down Payment
Qualified buyers have the option of financing 100 percent of the purchase price when getting a loan from Consumers Credit Union, and there are no vehicle restrictions. However, you must become a member to get a loan. You’ll also need a minimum credit score of 620 and a minimum monthly income of $2,000. APRs start at 2.69 percent, loan amounts range from $5,000 to $150,000, and loan terms range from 6 to 84 months.
Carvana: Best for Online Car Buying Experience
If you’re buying a used car from Carvana, you might find that getting financing through them will be your simplest option. You can search through its inventory of more than 20,000 used cars, choose your loan terms, and complete the paperwork from the comfort of your couch. There’s no minimum credit score for Carvana, either. However, you should be aware that the starting APR (3.9 percent) is higher than at some other lenders. So if you have good credit, you might be able to get a lower rate elsewhere. Loan amounts start at $1,000.
LightStream: Best for Private Party Auto Loans
If you’re buying a car from an individual and have excellent credit, consider a loan from LightStream. It offers competitive interest rates on private party auto loans starting at 3.49 percent when you enroll in autopay, and the upper ceiling APR is just 10.49 percent. New car loans start at 2.49 percent with autopay. There are also no restrictions on the age or mileage of the vehicle you purchase. Loan amounts range from $5,000 to $100,000, with terms from 24 to 84 months, and LightStream issues loans in all 50 states. However, you’ll need a minimum credit score of 660 to apply, and there’s no way to prequalify with a soft credit pull.
MyAutoLoan: Best for Fair Credit
MyAutoLoan is another loan comparison marketplace that’s a great option for people with fair credit who want to compare rates across lenders. The minimum credit score is just 575, and APRs start at 2.24 percent. However, the lowest interest rates are reserved for the most creditworthy customers. You can get a loan for an amount ranging from $5,000 to $99,000 for a term of 24–84 months. There are some vehicle restrictions, depending on the lender you choose, and loans aren’t available in Alaska or Hawaii.
Navy Federal Credit Union: Best for Military Members
You’ll need to be a member with a savings account at Navy Federal in order to take out an auto loan. To become a member, you need to be a servicemember, veteran, or immediate family member of a military member. Once you’re a member, it’s easy to apply for a loan online, by phone, or in person. Both new and used vehicles start at just 1.79 percent APR. You can save if you use direct deposit, and there’s an auto buying program with exclusive discounts at participating dealers. There’s no minimum credit score required, but you’ll need excellent credit to qualify for the lowest rates. The minimum loan amount is only $250, making Navy Federal a great option for small loans on used cars.
PenFed Credit Union: Best for Low Starting Rates
PenFed’s APRs start at just 1.39 percent for new cars (yes, you read that right), and it offers discounted vehicle pricing when you purchase through its car buying service. Anyone with a credit score of 610 or above can apply, but you’ll need to be a member to get the funds. And if you want a preapproval for a specific vehicle, you’ll need to be a member for at least 90 days. Membership is open to anyone, though, as long as you have a valid Social Security number or tax identification number and can maintain a savings account with a balance of at least $5.
