Which bank has the lowest auto loan rates?
Top Auto Loan Lender | Lowest APR | Our Award |
---|---|---|
AutoPay | 4.67%** | Best Auto Loan Rates |
PenFed Credit Union | 5.24% | Best Credit Union Auto Loan |
Auto Approve | 5.24%** | Best Auto Refinance Rates |
Consumers Credit Union | 6.54% | Excellent Credit Union Auto Loan |
HDFC offers you the lowest car loan interest rate in India, with a 7.95% to 8.30% valuation. The exact rate will depend on your car valuations, CIBIL score, and employment status.
- Wesbank Vehicle Finance.
- Absa Vehicle Finance.
- FNB Vehicle Finance.
- Alternative vehicle loan lenders.
- Keitzman Vehicle Finance.
- Frequently asked questions about car finance:
An interest rate under 5% is a great rate for a 72-month auto loan. However, the best loan offers are only available to borrowers who have the best credit scores and payment histories.
Yes, just like the price of the vehicle, the interest rate is negotiable. Dealers may not offer you the lowest rate that you qualify for. To get the best interest rate, shop around with multiple lenders and negotiate.
Credit Score Range | New Car Loan Rates | Used Car Loan Rates |
---|---|---|
781 to 850 | 5.64% | 7.66% |
661 to 780 | 7.01% | 9.73% |
601 to 660 | 9.60% | 14.12% |
501 to 600 | 12.28% | 18.89% |
- Shop for the Best Total Amount Instead of the Best Monthly Payment. ...
- Get Quotes from Familiar Institutions. ...
- Do Your Research. ...
- Don't Apply for More Than One Loan Every Two Weeks.
Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you'll need at least prime credit, meaning a credit score of 661 or up, to get a loan at a good interest rate.
Credit Score | New Car Loan | Used Car Loan |
---|---|---|
750 or higher | 7.24% | 7.49% |
700-749 | 7.24% | 7.49% |
600-699 | 6.99% | 7.24% |
451-599 | 10.37% | 10.62% |
Is it better to go through a bank for a car loan?
You don't need to decide between bank and dealership financing right away. In fact, it's beneficial to check your rates with a bank — and some online lenders — before you visit a dealership. The primary benefit of going directly to a bank or credit union is that you will likely receive lower interest rates.
- Best Overall: PenFed.
- Best for Bad Credit/Low Rates: AUTOPAY.
- Best Credit Union: Consumers Credit Union.
- Best for Refinance: LendingTree.
- Best for Fair Credit: LendingClub.
- Best for Full Car Buying Experience: Carvana.
- Best for High Maximum Accepted Mileage: OpenRoad Lending.
In general, you should strive to make a down payment of at least 20% of a new car's purchase price. For used cars, try for at least 10% down.
Company | Forbes Advisor Rating | Minimum rate |
---|---|---|
PenFed Credit Union | 4.7 | Starting at 4.74% |
Consumers Credit Union | 4.2 | Starting at 5.99% (with autopay) |
Digital Federal Credit Union (DCU) | 3.7 | Starting at 6.74% (with autopay) |
USAA | 3.7 | Starting at 5.49% (with autopay) |
I... Top Banks like Canara Bank, HDFC Bank, ICICI Bank, Punjab National Bank, and State Bank of India are providing the cheapest car loans. Canara Bank interest rates range from 8.80 percent to 11.95 percent. HDFC Bank car loans start from 8.75 percent.
For instance, using our loan calculator, if you buy a $20,000 vehicle at 5% APR for 60 months the monthly payment would be $377.42 and you would pay $2,645.48 in interest.
Generally, a good APR for a car loan might look something like this: Excellent Credit (750+): 3% or lower for new cars, 4% or lower for used cars. Good Credit (700-749): 4-5% for new cars, 5-6% for used cars. Fair Credit (650-699): 6-7% for new cars, 7-8% for used cars.
Car Loan APRs by Credit Score
Excellent (750 - 850): 2.96 percent for new, 3.68 percent for used. Good (700 - 749): 4.03 percent for new, 5.53 percent for used. Fair (650 - 699): 6.75 percent for new, 10.33 percent for used. Poor (450 - 649): 12.84 percent for new, 20.43 percent for used.
Loan Amount Range | Minimum of $4,000 |
---|---|
Annual Percentage Rate (APR) | Rates begin around 3.54% for those with excellent credit |
Loan Term Length | 36 to 72 months |
Prepayment Penalty | None |
Application Fee | None |
Auto loan rates for new and used vehicle purchases fell in the first quarter of 2024 to 6.73% and 11.91%, respectively, down slightly from the 15-year highs we saw at the end of 2023, according to Experian.
What is a good credit score for a car loan?
Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian. Meanwhile, low-credit borrowers with scores of 600 or lower accounted for only 14% of auto loans.
Credit score | Average APR, new car | Average APR, used car |
---|---|---|
Superprime: 781-850. | 5.38%. | 6.80%. |
Prime: 661-780. | 6.89%. | 9.04%. |
Nonprime: 601-660. | 9.62%. | 13.72%. |
Subprime: 501-600. | 12.85%. | 18.97%. |
- Be aware of your credit score. Be aware of what your credit score is and if there are any points that need to be corrected before you apply for a car loan.
- Clean up your score. ...
- Consider Refinance Loans. ...
- Enlist a cosigner. ...
- Consider in-house financing.
- Refinance your car loan. ...
- Make biweekly payments. ...
- Round up your payments. ...
- Put extra money toward a lump-sum payment. ...
- Continue making your monthly payments. ...
- Opt out of any unneeded add-ons.
Refinancing is one of the easiest ways to get a lower car payment and more favorable interest rates to save money. You can reduce monthly car payments without refinancing by trading in your vehicle, selling it, or negotiating with your lender.