Best Auto Loan Rates of November 2023 - Rates From 1.99%

PenFed, AUTOPAY, and Consumers CU are some of your best choices for auto loans in 2023

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According to our research, PenFed Credit Union is the best overall auto loan lender thanks to its wide selection of loan types and competitive rates. It offers rates as low as 5.24%, and you may even qualify for 1.99% with OpenRoad Lending. By choosing the right lender, you can set yourself up for a less stressful experience with lower monthly payments, save money, and even pay off your car more quickly. 

We’ve rounded up the best new, used, and refinance auto loan rates that can help you do just that, based on our review of 25 leading auto lenders. Lenders were examined and rated on their APRs, loan types, loan terms, vehicle and borrower requirements, and other factors. We also conducted a survey of 1,016 auto loan borrowers, collecting data on lender sentiment and the loan process.

Best Auto Loan Rates of November 2023 - Rates From 1.99%

Best Overall/for Low Rates : PenFed

PenFed logo
PenFed logo.
  • Used APR Range: 5.24%–17.99%
  • Used Loan Amounts: $500–$150,000
  • Minimum Recommended Credit Score: Not disclosed
Pros & Cons
  • Full suite of auto loan types available

  • Allows private-party vehicle purchases

  • Promotional offers if you use car-buying service

  • Must join credit union

  • Doesn’t allow co-signers

  • No rate discounts available

Why We Chose It

PenFed is our top pick overall for auto financing because it offers all of the loan types you’d ever hope to use, at competitive rates: loans for new or used cars, refinances, cash-out refinances, and even lease buyout loans. You can even use a used car loan to buy a car from a private seller, if you wish. PenFed will mail you a check if you’re approved for any of its loans. 

That can take a few days, but if you’re OK with using the TrueCar car-buying service, PenFed offers a pretty good relationship discount. Your loan could be funded the same day you’re approved, if you use this service.

Read our full PenFed auto loans review.

Borrower Qualifications
  • Available in all 50 states and Washington, D.C.
  • Must join the credit union by depositing at least $5 in a savings account.
Vehicle Qualifications
  • For loans less than seven years: No limit on vehicle age, and must have 125,000 miles or fewer
  • For loans of seven years or more: Vehicle must be less than five years old and be under 60,000 miles
  • Maximum loan-to-value ratio: 125%
  • Allows private-party vehicle purchases: Yes

Best for Bad Credit : AUTOPAY



  • Used APR Range: As low as 5.69%
  • Used Loan Amounts: $2,500–$100,000
  • Minimum Recommended Credit Score: 500
Pros & Cons
  • Wide range of loan types

  • No payments for 45 days

  • Low minimum credit score requirement

  • Very sparse on loan details

  • Doesn’t disclose partner lenders

  • Can’t apply with a co-signer, only a co-borrower

Why We Chose It

AUTOPAY is a loan aggregator and it's a bit light on the details; maybe intentional in order to get you to bite. If you have excellent borrower qualifications, AUTOPAY certainly has the potential to be one of your cheapest financing options, advertising some of the best car loan rates today compared to other lenders and aggregators. And while it works with borrowers with credit scores as low as 500, it doesn’t specify the top end of the rate range you’d be likely to pay if you have poor credit, so you’ll need to be careful—especially since you can’t apply with a co-signer (only a co-borrower). 

AUTOPAY does offer a full suite of auto loan types: used cars, new cars, refinances, cash-out refinances, and even lease buyout loans. It works with a network of partner lenders rather than offering the loans itself, and that’s how it can offer so much flexibility. For that reason, it’s a good choice to add to your shopping list, although we would prefer if it offered more concrete details.

Read more in our full AUTOPAY auto loans review.

The best auto loan rates are often advertised through third-party companies that network with partner lenders, like AUTOPAY. Most don’t disclose their partners, however, so you can’t always see all of the companies you’re actually checking your rates with. You may need to sign up for automatic payments to get the best rates, as well.

Borrower Qualifications
  • Recommened credit score of 500 or higher
  • Available in all U.S. states and Washington, D.C.
Vehicle Qualifications
  • Maximum accepted vehicle age: 10 years
  • Maximum accepted mileage: 150,000 miles
  • Maximum loan-to-value ratio: Not disclosed
  • Allows private-party vehicle purchases: Yes

Best Credit Union : Consumers Credit Union

Consumers Credit Union

 Consumers Credit Union

  • Used APR Range: As low as 6.34%
  • Used Loan Amounts: $500–$350,000
  • Minimum Recommended Credit Score: Not disclosed
Pros & Cons
  • Allows co-signers

  • No age or mileage restrictions

  • Offers a full suite of car loan options

  • Can only be used at a dealership

  • Must join credit union to receive loan

  • Lack of transparency about loan requirements

Why We Chose It

As our highest-rated credit union, Consumers Credit Union is a good choice for people who prefer to bank with these financial institutions. It’s also a good choice if you’re trying to buy an older car from a dealership because it’s one of the few lenders that doesn’t put any limits on your vehicle’s model year or mileage. Consumers also offers an optional mechanical repair insurance plan through ForeverCar, which might be especially important if you are driving an older car. 

Consumers doesn’t specify what sort of credit you need to qualify for a loan (or any other qualifications, really), but it might be good to add this one to your shopping list if you have bad credit. The maximum rate you’ll pay for a refinance loan, for example, is about half of what some other lenders may charge. 

Borrower Qualifications
  • Available to people living in all 50 states and Washington, D.C.
  • Need to join Consumers Cooperative Association ($5 fee) and deposit $5 in a savings account to establish your membership, if approved for a loan
Vehicle Qualifications
  • Maximum accepted vehicle age: None
  • Maximum accepted mileage: None
  • Maximum loan-to-value ratio: 125%
  • Allows private-party vehicle purchases: No

Best for Refinance : LendingTree



  • Refinance APR Range: As low as 5.25%
  • Refinance Loan Amounts: Not disclosed
  • Minimum Recommended Credit Score: Not disclosed
Pros & Cons
  • Potential for very low rates

  • Compare many refinance loan offers at once

  • No limits on age or mileage of vehicle

  • Can generate a lot of spam

  • Very low loan-to-value ratios

  • Doesn’t offer many details about its loans

Why We Chose It

LendingTree is another company that can help you quickly identify the best financing rates from among its network of lenders. It suffers from the same problems as other lender networks, however—namely, that it doesn’t tell you which lenders it’s checking your rates with, nor what the types of loans you might qualify for look like. You can also expect a lot of companies reaching out to you with spam, too.

Still, it’s a good option if you’re looking for a car loan refinance, advertising competitively low rates. You’ll just need to make sure you have plenty of equity in your vehicle since LendingTree lenders don’t offer loans with a loan-to-value ratio above 80%. That means underwater loans aren’t eligible for refinance.

Borrower Qualifications
  • Available to residents of all 50 states and Washington, D.C.
Vehicle Qualifications
  • Maximum accepted vehicle age: None
  • Maximum accepted mileage: None
  • Maximum loan-to-value ratio: 80%
  • Allows private-party vehicle purchases: Not disclosed

Best for Fair Credit : LendingClub



  • Refinance APR Range: 5.99%–24.99%
  • Refinance Loan Amounts: $4,000–$55,000
  • Minimum Recommended Credit Score: 600
Pros & Cons
  • Minimum recommended credit score of 600

  • No loan fees

  • Can refinance with the same lender

  • Low rates for well-qualified borrowers

  • Doesn’t allow co-signers

  • Many residency and car restrictions

  • Doesn’t offer new or used auto loans

Why We Chose It

LendingClub, the former peer-to-peer lender, is now in the auto refinance business where it offers very good rates to borrowers with good credit. Borrowers with fair credit can be approved too, but if your credit is quite bad LendingTree may charge you a higher rate than most other lenders. On the bright side, LendingClub doesn’t charge any fees—origination fees, late fees, prepayment penalties, nothing. 

LendingClub is one of a handful of lenders that allow you to refinance your current LendingClub loan with another LendingClub loan, if you happen to qualify. However, be aware that there are many loan limitations with this lender. It’s not available in many sparsely populated states, for example, and there are many makes and models of popular cars LendingClub won’t finance. 

See more of the best auto loans for fair credit to explore your options.

Borrower Qualifications
  • 600 or higher recommended credit score
  • Current auto loan must have been open for at least one month
  • Current auto loan must have at least 24 months remaining
  • Available to residents of all U.S. states except for: Alaska, District of Columbia, Hawaii, Maine, New Hampshire, North Dakota, Vermont, West Virginia, Wyoming
  • You must be at least 18 years of age
  • You must be a U.S. citizen or permanent resident or live in the U.S. on a valid long-term visa
Vehicle Qualifications
  • Maximum accepted vehicle age: 10 years
  • Maximum accepted mileage: 120,000 miles
  • Maximum loan-to-value ratio: Not disclosed
  • Allows private-party vehicle purchases: No

In addition:

  • The loan’s remaining balance must be between $5,000 and $55,000
  • Can’t refinance business vehicles
  • Vehicle must be registered in the same state you live
  • Many cars not eligible for financing, such as Nissan Leafs and models from Suzuki, Saturn, Mercury, Saab, Pontiac, Oldsmobile, Hummer, and more

Best for Full Car Buying Experience : Carvana



  • APR Range: Not disclosed
  • Loan Amounts: Not disclosed
  • Minimum Credit Score: 500
Pros & Cons
  • Neat, techy way to buy a car

  • Offers seven-day return policy

  • Long 45-day pre-approval window

  • Not available outside of contiguous U.S.

  • Doesn’t allow co-borrowers, only co-signers

  • Delivery charges not refundable if you return car

Why We Chose It

Carvana is a used car dealership that offers a completely online car-buying experience similar to TrueCar. You can apply for an auto loan online, find a car, and then pick it up or even have it delivered to you. One of Carvana’s claims to fame, however, is its car vending machines. If you’re pre-approved for a loan you can schedule an appointment to take a car for a test drive from one of its giant vending machines. The company will even provide you with a token to use.

If you like the car, you can keep it. If not, you’ll have seven days to return it. It’s a futuristic way to buy a car that many people like; however, there can be problems with the setup. If you have a car delivered and you don’t like it, for example, you can return it, but the shipping charge is nonrefundable. That makes it costly and impractical to test drive different models like you would at a dealership.   

Borrower Qualifications
  • Minimum recommended credit score of 500
  • Must be at least 18 years old
  • Minimum annual income of $4,000
  • Must not have any active bankruptcies
  • Available to residents in contiguous U.S.
Vehicle Qualifications
  • Maximum accepted vehicle age: Varies
  • Maximum accepted mileage: 140,000 miles
  • Maximum loan-to-value ratio: Not disclosed
  • Allows private-party vehicle purchases: No (only for used cars bought through the Carvana platform)

Best for High Maximum Accepted Mileage : OpenRoad Lending

OpenRoad Lending

 OpenRoad Lending

  • Refinance APR Range: 1.99%–24.99%
  • Refinance Loan Amounts: $7,500–$100,000
  • Minimum Credit Score: 500
Pros & Cons
  • Maximum accepted mileage of 160,000, according to customer service

  • Offers lease buyout loans

  • Refinancing available if you’re underwater on loan

  • Can re-refinance your loan through OpenRoad again

  • Potentially high rates and fees

  • Doesn’t allow co-signers

  • Many vehicle restrictions

Why We Chose It

OpenRoad Lending’s website looks like it was designed in the previous decade. But it can be helpful if you’re struggling to make your auto loan payments and you’re not able to qualify for a better loan with another lender—especially if you need to refinance a loan for a high-mileage car. 

It comes with very high origination fees ranging from $249 to $449, a 5% late payment fee, and interest rates that zoom into credit-card-debt territory for less-qualified borrowers. However, OpenRoad Lending is still better than many other types of alternative auto loans, such as those from buy-here-pay-here lenders. You can still qualify if you have a poor credit score, even if you’re underwater on your current loan—a common problem for people with bad car loans. 

OpenRoad Lending has a maximum loan-to-value ratio of 180%, meaning you may be able to borrow nearly twice your car’s actual value in order to pay off your existing loan—far more than most other lenders. 

Read more in our full OpenRoad Lending auto loans review.

Borrower Qualifications
  • Minimum credit score of 500 
  • Must be at least 18 years old
  • Available to residents in 46 U.S. states
  • You must make at least $2,000 per month (earnings from Uber or similar services do not count toward the income requirement) 
  • Your DTI cannot exceed 40%
  • Can only refinance auto loans issued by NCUA- or FDIC-insured lenders such as credit unions and banks
Vehicle Qualifications
  • Maximum accepted vehicle age: Not disclosed
  • Maximum accepted mileage: 160,000 miles
  • Maximum loan-to-value ratio: 180%
  • Allows private-party vehicle purchases: No
  • Business vehicles, Oldsmobile, Daewoo, Smart Car, and Isuzu vehicles are not eligible for refinancing

Final Verdict

If you’re looking for the best overall auto loans, try starting with PenFed; it's a credit union, but anyone can join for just $5 when approved for a loan. AUTOPAY is worth checking as well, especially if you'd like to browse a variety of lenders. LendingTree is also a top choice for a rate-comparison website. If you prefer sticking with credit unions, Consumers Credit Union is yet another good option that allows anyone to apply. 

Or, if you’re not too picky about your car and prefer a more streamlined experience, Carvana offers some unique and affordable financing options. And finally, while expensive, OpenRoad Lending offers a lot of potential if you’re looking to get out of a bad car loan. 

Compare Providers

Company Used APR Range Used Loan Amounts Used Loan Terms Min. Rec. Credit Score
PenFed Best Overall 5.24%–17.99% $500–$150,000 3–7 years Not disclosed
AUTOPAY Best for Bad Credit As low as 5.69% $2,500–$100,000 2–8 years 500
Consumers Credit Union Best Credit Union As low as 6.34% $500–$350,000 36–84 months Not disclosed
LendingTree Best for Refinance As low as 5.25% (Refinance) Not disclosed 36–72 months (Refinance) Not disclosed
LendingClub Best for Fair Credit 5.99%–24.99% (Refinance) $4,000–$55,000 2–7 years 600
Carvana Best for Full Car Buying Experience Not disclosed Not disclosed Not disclosed 500
OpenRoad Lending Best for High Maximum Accepted Mileage 1.99%–24.99% (Refinance) $7,500–$100,000 (Refinance) 24–72 months (Refinance) 500

Looking for something in particular? See our top picks for auto loans in a variety of categories:

What Is an Auto Loan and How Does It Work?

An auto loan is an installment loan used to buy a new or used car, or to refinance an existing auto loan. Auto loans are usually secured, which means the vehicle serves as collateral for the loan. If you fail to make monthly car payments as agreed, the lender can seize the vehicle. You can use a personal loan to make a car purchase, but secured auto loans typically have lower rates because lenders have more security.

Like other installment loans, the funds of an auto loan are provided in a lump sum. The borrower makes equal monthly installment payments until the term loan is paid off. The money is lent at interest, so the borrower ends up paying back more than they originally borrow. Longer terms may come with lower annual percentage rates (APRs), but don't be fooled. In general, it's best to choose the shortest term and the highest monthly payments you can afford; this will make the overall loan as inexpensive as possible. When the loan is fully paid off, the vehicle belongs to the borrower (instead of the lender).

Auto loans are available from traditional banks, online banks, credit unions, and lending marketplaces (which partner with banks and credit unions). You'll find new, used, and refinance auto loans from all of those sources, although some lenders only offer certain loan types; some lenders offer special deals for first-time car buyers, as well.

Auto loans are also available through dealerships that partner with banks; in some cases you may find lower rates through a dealership, but it's worth getting pre-approved with lenders on your own to see what kind of rates you can get. Then, you can go to the dealership with some bargaining power—see if the dealer will beat the best rate you found on your own.

Learn more in our expert explanation of how auto loans work.

In the News: According to Cox Automotive, access to auto financing has improved in June across all channels and lender types, meaning borrowers had an easier time accessing credit. Although June saw an improvement, there has been an overall downward trend in access to auto credit since the pandemic, with 2023 still more restrictive than 2022.

How to Apply for an Auto Loan

You can get an auto loan from several different types of lenders: online lenders, banks, and credit unions. Dealerships themselves also partner with these lenders to offer you financing. It’s best to do your loan shopping before you actually start looking for a car, because you can take the time to find the best loan options and you’ll have more bargaining power when you do find the car you want.

Each lender will check two things in order to approve your loan: your financial situation and the car you want to buy. You can start the loan shopping process by getting pre-approved with different lenders. If you’re pre-approved based on the initial details you provide, including personal details like Social Security number and some financial details, the lender will let you know what rates and terms you’re likely to qualify for.

In our survey of over 1,000 auto loan customers, borrowers said the ability to get pre-approved was one of the most important loan features.

Lenders look for a few things. Your credit score, income, and debt payments are three of the most important factors, so it’s a good idea to clean up your credit in advance if it needs work and you have the time. Consider ways to reduce your debt-to-income ratio. If you’re not able to qualify on your own and you have someone who’s willing to help, asking them to be a co-signer can nudge a lender to approve your loan.

Once you find the car you want, you can provide the details to your chosen lender and submit a full loan application. The lender will usually disburse the loan funds directly to you, either by check or bank deposit. In some cases lenders may send the money directly to dealerships; for refinance loans, lenders may send the money directly to the current holder of your loan.

Your new lender will provide you with details on how to set up an account, manage your loan, and make payments.

Auto Loan Calculator

See how much car you can afford with our auto loan calculator; plug in your details, and you can see how big your monthly payments will be at different terms and interest rates.

Say you take out a loan for a new 2023 Ford F-150 Platinum with the following details, for example:

  • Car price: $64,915
  • Down payment: $5,000
  • Loan amount: $59,915
  • Loan term: 72 months
  • Credit: Fair (601–660 credit score)
  • Interest rate: 7.14%
  • Total paid over the life of the loan: $73,837.72

With those terms, you'd have a monthly loan payment of $1,025.52. If you were to make a larger down payment, such as $8,000, you could take out a smaller loan ($56,915), and your monthly payment would be $974.17. You'd pay less overall: $70,140.59 over the life of the loan.

Where Are the Big Banks?

We included big banks like Chase, Capital One, Bank of America, and U.S. Bank in our review of the auto loan industry, but these financial institutions don't always make our "Best" lists.

Why? Although these banks are reliable and used by millions of people, they usually don't offer the very best rates and terms. Online banks and lender marketplaces tend to have lower operating costs, and can pass those savings on to borrowers. Big banks tend to score well in our rankings, but they don't usually come out on top when it comes to auto loan interest rates, flexibility in terms, and accessibility.

Frequently Asked Questions

  • Which Companies Are Best for Car Loans?

    Our top-rated lenders offer the lowest new and used car loan rates in the auto financing industry—if you've got good credit and you want the best rates, take a look at PenFed, AUTOPAY, Consumers Credit Union, LendingTree, LendingClub, and OpenRoad Lending. You'll also find several good options for refinancing, as well.

  • How Do You Get the Best Car Loan Rate?

    Not everyone qualifies for the best auto loan rates. Here are some things you can do before and during the application process to tip the odds in your favor:

    • Check your rate with as many lenders as you can (within a short timeframe).
    • Pay down your existing debt, especially credit card debt.
    • Check your credit reports and fix any errors before you apply for a loan.
    • Use your loan pre-approval offers to negotiate a lower rate with the dealership.
  • What Credit Score Do You Need to Qualify for a Car Loan?

    There is no overall minimum credit score you’ll need to qualify for an auto loan. It depends on the lender; each lender has its own credit requirements. In general, if you have good or excellent credit (670 or higher), you’ll qualify for the best auto loan rates. See the best car loans for bad credit if you’re dealing with a lower score.

  • Where Can I Get an Auto Loan?

    You can obtain an auto loan through a dealer in a dealer-arranged financing agreement or directly from an online lender, credit union, or traditional bank. Some dealers also offer in-house financing for car buyers with bad credit.

  • When Is the Best Time to Buy a Car?

    Ultimately, the best time to buy a car is when you need one. But if you have some flexibility, experts recommend the following times:

    • The end of the month, quarter, or year: Car salespeople often have to meet quotas for each month, quarter, and year, so they may be motivated to make a deal toward the end of those periods to ensure they make the cut.
    • Three-day weekends: Dealerships often run sales events for President's Day, Memorial Day, Labor Day, and other three-day weekends. The same goes for other holidays, such as the Fourth of July and Black Friday.
    • The end of the model year: Dealers may offer deals to get rid of inventory and make way for the latest model. Research when new models are released for the car you want and see if it can help you with negotiations.
  • What Is the Average Interest Rate on a Car Loan?

    According to Experian, the average rates for the first quarter of 2023 were 6.58% for new cars and 11.17% for used cars. Your rate will vary depending on your credit score, income, and other factors.

  • What Are Used Car Loan Interest Rates?

    For the first quarter of 2023, the average interest rate for all used cars was 11.17%, according to Experian. Here's the average loan interest rate for each credit score range:

    • Super prime: 6.79%
    • Prime: 8.75%
    • Near prime: 13.28%
    • Subprime: 18.55%
    • Deep subprime: 21.32%
  • What Is a Good Interest Rate for a Car for 72 Months?

    A good interest rate for a 72-month loan can vary depending on the type of vehicle you're buying, your credit, and your financial profile. Rates for superprime borrowers with the best credit can be as low as around 5%, while borrowers with poor credit can pay upwards of 14%. That said, long-term auto loans typically have higher interest rates compared to shorter terms, such as three or four years. If you can afford a higher monthly payment, consider a shorter term to save money.

  • What Car Loan Interest Rate Can I Get With an 800 Credit Score?

    An 800 credit score is considered to be a superprime credit score. According to Experian, interest rates for prime borrowers in the first quarter of 2023 were 5.18% for new cars and 6.79% for used cars.

    However, your interest rate will also depend on your income, credit history, debt, and other factors.

  • What Credit Score Do Banks Use for Auto Loans?

    Banks and credit unions use different credit scoring models for different purposes. Auto loan borrowers are typically scored using an auto-financing-specific version of a FICO score, such as FICO Auto Score 8 or 9. These scoring models differ slightly from those used to evaluate applicants for loans or credit cards; instead, they're specifically designed to help lenders determine how likely a borrower is to pay back an auto loan.

  • Can I Sell My Car With a Loan?

    Yes, you can sell your car even if you still have a loan outstanding. When you sell the vehicle, however, you'll need to pay off the loan. If you trade in your car at a dealership, the dealer will handle the process on your behalf. Otherwise, you'll need to do it on your own.

    If your car is worth less than the amount you owe, you may be able to roll the deficiency balance into a new loan through a dealer. But if you sell your car to a private party, you'll typically need to come up with the cash on your own.

    You can trade in leased vehicles, as well. If the vehicle is worth more than the buyout price, you can use that difference as equity when trading in the vehicle at dealerships.

  • Is It Better to Finance Through A Car Company or a Bank?

    Having your dealer arrange financing on your behalf can save you some time, but it could result in a slightly higher interest rate. On the other hand, applying with multiple banks and credit unions on your own could help you find a lower interest rate, but it'll take more time and effort.

    To determine the right path for you, consider the benefits and drawbacks of each option and your priorities.

Other Types of Auto Loans


Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of auto loan lenders. To rate providers, we collected hundreds of data points for a period of over two months across more than 20 auto loan lenders, including interest rates, fees, loan amounts, borrower requirements, and vehicle requirements, to ensure that our reviews help users make informed decisions for their borrowing needs. We also conducted a survey of 1,016 auto loan borrowers for attitudes and opinions about lenders and the loan approval and disbursement process.

Car Loan Rates
Article Sources
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  2. Cox Automotive. "Auto Credit Availability Improved in June."

  3. Experian. “Step-by-Step Checklist for Buying a New Car.”

  4. Experian. “What Credit Score Do I Need for an Auto Loan?

  5. FICO. “What is a FICO® Score?

  6. Progressive. "When is the best time to buy a car?"

  7. Experian. "State of the Automotive Finance Market Report."

  8. Federal Trade Commission Consumer Advice. "Auto Trade-Ins and Negative Equity: When You Owe More than Your Car is Worth."