Auto Loans
Whether you're buying new, financing used, or refinancing an existing loan, the lender you pick can mean thousands in lifetime interest. Compare auto loan rates and terms before walking onto a dealer lot.
Auto loan basics
- Shopping
Get Pre-Approved Before the Dealer
Walking in with a pre-approval letter from a bank or credit union flips the negotiation. The dealer's financing department now has to beat your number, not anchor it.
By Priya Shah
- Refinancing
When Auto Refinancing Pays Off
If your credit improved 50+ points since you took the original loan, refinancing usually saves money. Run the numbers using our refinance calculator.
By Priya Shah
- Bad credit
Auto Loans with Bad Credit
Sub-620 borrowers can still get auto loans — at higher rates. Credit unions and certain online lenders are usually friendlier than captive dealer financing.
By Maya Patel, CFP®
- Term length
Don't Stretch the Loan Past 60 Months
72- and 84-month auto loans lower the monthly payment but you're underwater on the car for years. Aim for 48-60 months even if it pinches.
By Daniel Reyes, CFA
Frequently asked questions
What's the typical APR range for Auto Loans today?
Rates depend on credit profile, loan amount, and the lender's funding model. The lenders listed above show their disclosed APR ranges; pre-qualifying with two or three usually produces the most accurate read for your situation.Will checking my rate hurt my credit score?
Pre-qualification uses a soft credit pull, which doesn't affect your score. A hard pull only happens after you formally apply — so you can compare offers from multiple lenders first.How long does funding take after approval?
Most lenders listed fund within 1-5 business days of accepting your offer. Auto Loans can take longer when underwriting requires additional documentation (income verification, asset statements, etc.).What credit score do I need?
Minimums vary by lender. Some accept scores in the high 500s; others require 680+ for the best published rates. Check each lender's "Min credit" column above.