Current Auto Loan Rates

Susan Kelly Updated on Dec 27, 2021

Auto loans ratesare unsecured loans that may be used to pay for such purchase of a new or used car. In order to discover the best interest ratesand fees for your vehicle, you'll need to look around at other dealerships and financial institutions. If you're looking at it from the right angle, that would be both good and terrible news. Your car might be repossessed even if the loan is unsecured, so be sure to keep up with your payments. With collateral, you may be able to get lower rates and better terms on your car loan. Most vehicle loans have fixed lending rates and loan duration of 2 to 7 years, but your lender may offer you a better deal.

Why should you put your faith in Bank loan rates?

As a bank, we focus on helping you make better choices about your money. For more than four decades, we've been analyzing and assessing financial organizations. Our award-winning editorial team avoids commercial influence. Our data is also checked for correctness.

Compare APRs while shopping for a car loan to get the best rates.Look for low-cost lenders that provide flexible repayment options. The dates displayed are for December 23, 2021. Verify the lenders' websites. On this page, we've listed several car loan lenders that we think you'll like based on APR loans.

The most affordable rates for car loans


Current APR


Loan Amount

Light Stream

2.49% to 8.99% (with autopay)

36 to 84 months

$5,000 to $100,000

Bank of America

Starting at 2.29%

48 to 72 months

Starting at $7,500

Capital One

Not specified

24 to 84 months

Starting at $4,000


Starting at 3.9%

Not specified

Not specified

my auto loan

Starting at 1.9%

24 to 84 months

Starting at $8,000

How do vehicle loans work?

Loansto purchase an automobile are known as auto loans. For a period of 24- to 84 months, a certain interest rate &''' monthly payment must be met before your automobile may be considered paid off. Auto loansare available from dealerships, banks, credit unions, or even internet lenders.

Vehicle loans offer lower interest ratesthan personal loans since they are secured. These are the normal APRs as of December 22, 2021.

Consider these things before applying for a car loan

Before making a final decision, shop around for a car loan. Each lender has its own method for calculating your interest rateas well as other terms of your loan.

Your credit score is frequently the determining factor in the cost of a loan—the lower your APR, the higher your credit score. You may also be able to borrow money or pick from a wider range of repayment choices if you have a higher credit score. Increased overall interest costs are associated with longer payback durations than shorter ones.

Preapproval allows you to see what interest rates you're eligible for without jeopardizing your credit rating.

Rates for car loans based on credit score

Credit Score

Average APR New Car

Average APR used Car
















Can I receive a car loan if I have a negative credit history?

Even with bad credit, you can acquire a car loan, but your interest rateswould be higher. If you're having trouble being approved or obtaining fair prices, explore the following options.

  • Boost your credit rating:Pay off enough debt because you can before be applying for a car loan. Avoid opening additional accounts, including such credit cards.

  • A substantial down payment should be made:The lower your monthly payment, the greater your chances are of getting a better interest rate by putting down a larger deposit.

  • Consider having a co-signer:If you default on your loan,a founder with a good credit rating will accept some of the responsibility, and they can also help you get authorized for the loan in the first place.

How do I apply for a vehicle loan?

It is identical to the procedure of obtaining any other sort of loan when applying for a vehicle financing loan. Here's what you should do to get started:

  • Look around for the best deal: Before signing on the dotted line for an auto loan, shop around with at least three different lenders to evaluate conditions and rates. Try to identify lenders with APRs and payback arrangements that are within your financial means.

  • Prequalifying: Applying for a loan and seeing your possible interest rateswithout undergoing a credit check is called prequalifying with lenders.

  • Complete your application:A copy of your vehicle's purchase agreement, registration, and title will likely be required to complete your application. As well as a driver's license, you'll need to provide evidence of your income and residency.

  • Get started with your loan repayments now:As soon as you have your automobile, you'll start paying payments on it. When it comes to paying your monthly bills, a calendar or an automatic payment system might help you remain on top of things.