Finding the best auto loan rates in 2026 can save you thousands of dollars over the life of your car loan. With the average new car price now exceeding $48,000 and interest rates ranging from under 4% to over 14% depending on your credit, choosing the right lender matters more than ever. A single percentage point difference in your APR can mean hundreds or even thousands of dollars in savings.
This comprehensive guide breaks down the best auto loan rates available right now. We compare top lenders across multiple categories, show you exactly what rates to expect based on your credit score, explain where to find the best deals, and give you actionable tips to secure the lowest rate possible. Whether you have excellent credit or are working to rebuild your score, this guide will help you navigate the auto financing landscape in 2026.
Current Auto Loan Rates in 2026
As of early 2026, the auto loan market has stabilized somewhat from the volatility of previous years, but rates remain elevated compared to the ultra-low rates of 2020-2021. According to Bankrate
Your individual rate depends on several key factors: your credit score and credit history, the loan term length, whether you are buying new or used, the age and mileage of the vehicle (for used cars), your debt-to-income ratio, and the lender you choose. Understanding how these factors interact can help you secure a better rate. Here are the current average rates by credit score, compiled from data by NerdWallet and Experian: These figures represent averages across the market. The best lenders, particularly credit unions and online lenders, often offer rates significantly below these averages for qualified buyers. Conversely, buyers with challenged credit may face rates at the higher end of these ranges or beyond, especially at buy-here-pay-here dealerships. We have analyzed dozens of lenders to identify the best options across different categories. Whether you prioritize the lowest rate, the easiest application process, or flexibility for less-than-perfect credit, there is a lender on this list for you. Best for: Competitive rates and pre-qualification Capital One Auto Finance stands out for its Auto Navigator program, which lets you pre-qualify without a hard credit pull. This means you can see your real rate and monthly payment without hurting your credit score. The process is straightforward: enter your information, get pre-qualified, then shop at participating dealers with your financing already secured. Learn more about how to get pre-approved for a car loan. Capital One works with a vast network of dealers, making it convenient to find a participating location. However, you cannot use Capital One financing for private party purchases, and the vehicle must meet their age and mileage requirements (typically less than 10 years old with under 120,000 miles). Best for: Comparing multiple lenders Caribou operates as a lending marketplace rather than a direct lender. When you apply, they shop your loan to their network of partner lenders to find you the best rate. This can save you significant time compared to applying to each lender individually. See advantages of getting pre-approved before you shop. Caribou particularly excels at refinancing existing auto loans and handling lease buyouts. If you are currently in a lease and want to purchase the vehicle, or if you have an existing loan at a high rate, Caribou is worth considering. The platform is transparent about fees and provides multiple offers so you can compare terms side by side. Best for: Excellent credit and fast funding LightStream, a division of Truist Bank, offers some of the lowest rates in the industry for buyers with excellent credit. Their Rate Beat Program is particularly noteworthy: if you are approved by another lender for a lower rate, LightStream will beat that rate by 0.10 percentage points, subject to certain conditions. The application process is entirely online, and funding can happen as soon as the same day you apply. LightStream does not restrict you to dealer purchases—you can buy from a private party, at auction, or even refinance an existing loan. However, LightStream has strict credit requirements, and their best rates are reserved for borrowers with excellent credit scores and strong income. Best for: Existing customers and dealer purchases Bank of America offers competitive rates and the convenience of working with a major national bank. If you are already a Bank of America customer, especially a Preferred Rewards member, you can access additional rate discounts. The bank has relationships with thousands of dealers nationwide, making it easy to use their financing at the dealership. Bank of America also offers a straightforward online application process, and you can get pre-approved before shopping. However, their rates are generally not as low as credit unions or specialized online lenders for borrowers with top-tier credit. Best for: Bad credit and quick comparisons MyAutoLoan is a marketplace that connects borrowers with multiple lenders, making it an excellent option if you have less-than-perfect credit. Unlike many lenders that have strict minimum credit score requirements, MyAutoLoan works with borrowers whose scores are as low as 575. This accessibility makes them a valuable resource for buyers rebuilding their credit. The application process is quick—you can receive up to four loan offers within minutes of applying. This allows you to compare rates and terms without multiple hard credit inquiries. MyAutoLoan also supports private party purchases, which many traditional lenders do not. When shopping for auto loans, do not overlook credit unions. According to Investopedia and Bankrate, credit unions consistently offer lower auto loan interest rates than traditional banks and online lenders. Why do credit unions offer better rates? Credit unions are not-for-profit organizations owned by their members. Instead of maximizing profits for shareholders, they return earnings to members in the form of lower loan rates, higher savings rates, and reduced fees. According to data from the National Credit Union Administration, credit union auto loan rates are typically 1-2% lower than bank rates. For example, while a bank might offer a 7.5% APR to a borrower with good credit, a credit union might offer 5.9% for the same borrower. On a $30,000 loan over 60 months, that difference saves you approximately $1,200 over the life of the loan. Credit unions also tend to be more flexible with their lending criteria and may work with borrowers who have less-than-perfect credit. They often provide more personalized service and are willing to consider factors beyond just your credit score, such as your relationship with the credit union and your overall financial picture. The main drawback is that you must be a member to borrow from a credit union. However, membership requirements have become increasingly flexible. Many credit unions now serve broad geographic areas or specific employer groups, and some allow anyone to join by making a small donation to a affiliated charity. When you buy a car, the dealer will almost certainly offer you financing. While convenient, dealer financing is not always the best deal. Understanding the differences between dealer and bank financing can save you money. According to Bankrate, dealer financing has some advantages: it is convenient, you can complete everything in one place, and dealers sometimes offer promotional rates like 0% APR (usually for shorter terms and well-qualified buyers). Dealers also work with multiple lenders, so they can shop for rates on your behalf. However, dealer financing has significant drawbacks. The dealer acts as a middleman and may mark up the interest rate above what the lender actually offers. This markup, called the “dealer reserve,” can add 1-3% to your rate. On a $30,000 loan, that markup could cost you an extra $1,000 or more over the loan term. Bank or credit union financing, on the other hand, typically offers lower rates and more transparency. When you get pre-approved by a bank or credit union, you know exactly what rate you qualify for before walking into the dealership. This pre-approval also gives you negotiating power—you can focus on the car price rather than the monthly payment. The best strategy? Get pre-approved by a bank or credit union before shopping, then let the dealer try to beat that rate. If they can offer a lower rate through their financing, great. If not, you have your pre-approval as a backup. Securing the best auto loan rate requires preparation and strategy. Follow these steps to maximize your chances of getting a low rate: When applying for an auto loan, having your documents ready can speed up the process and improve your chances of approval. According to Bankrate, here is what you typically need: Having these documents organized before you apply can significantly speed up the approval process and demonstrate to lenders that you are a prepared, serious borrower. Used car loans typically come with higher interest rates than new car loans. According to the Wall Street Journal, this is because used cars represent higher risk for lenders. A used car has already depreciated, may have unknown maintenance issues, and has less collateral value than a new car. Typically, you can expect used car rates to be 1-2 percentage points higher than new car rates for the same borrower. However, the lower purchase price of a used car often means you pay less total interest over the life of the loan, even with a higher rate. If you are buying used, aim for a vehicle that is 2-4 years old. These cars have already experienced the steepest depreciation but are still new enough to be reliable and qualify for reasonable financing rates. Avoid cars older than 10 years or with more than 100,000 miles, as these may be difficult to finance or come with very high rates. If you already have a car loan, refinancing could save you significant money. According to Bankrate, you should consider refinancing your auto loan if any of the following apply: Before refinancing, check current auto refinance rates and use a refinancing calculator to determine your potential savings. Keep in mind that some loans have prepayment penalties, so factor that into your calculations. A good rate depends heavily on your credit profile. For borrowers with excellent credit (750+), anything under 6% is competitive. For good credit (700-749), rates under 7.5% are reasonable. If you have fair or poor credit, focus on finding the best rate available to you rather than comparing to averages. Even a rate of 10% might be a good deal if your credit score is in the 600s. Yes, you can get a car loan with bad credit, but you will pay higher interest rates. Lenders like MyAutoLoan work with credit scores as low as 575. Credit unions are often more willing to work with borrowers rebuilding their credit. You can also improve your chances by getting a co-signer, making a larger down payment, or choosing a less expensive vehicle. Absolutely. Pre-approval tells you exactly how much you can borrow and at what interest rate before you visit a dealership. This knowledge gives you negotiating power and prevents you from falling for dealer tricks like focusing on monthly payments rather than the total cost. With a pre-approval in hand, you can shop like a cash buyer and negotiate on price alone. Generally, no. While a 72-month loan lowers your monthly payment, it costs significantly more in interest over the life of the loan. You also risk being “underwater”—owing more than the car is worth—for most of the loan term. If you need a 72-month loan to afford the payment, you are likely buying more car than you can afford. Aim for 48-60 months maximum. Aim for at least 20% down on a new car and 10% down on a used car. A substantial down payment reduces your loan amount, may qualify you for a better interest rate, and protects you from negative equity. If you cannot afford at least 10% down, consider a less expensive vehicle or wait until you have saved more. Finding the best auto loan rate in 2026 requires research, preparation, and willingness to shop around. Do not accept the first offer you receive. Compare rates from at least 2-3 lenders, including at least one credit union. Even a single percentage point difference in APR can save you thousands over the life of your loan. Remember to check your credit before applying, get pre-approved before visiting dealers, and always read the fine print before signing any loan documents. If your credit needs work, take the time to improve your credit score before applying—it could save you thousands. Ready to find your best rate? Start by getting pre-approved from Capital One, LightStream, or your local credit union. Then use those offers to negotiate the best possible deal on your next vehicle. Happy car shopping! This guide is based on data and research from the following authoritative sources: Last updated: February 19, 2026. Rates and terms are subject to change. Always verify current rates directly with lenders before applying. Finding the best auto loan rates in 2026 can save you thousands of dollars over the life of your car loan. With the average new car price now exceeding $48,000 and interest rates ranging from under 4% to over 14% depending on your credit, choosing the right lender matters more than ever. A single percentage point difference in your APR can mean hundreds or even thousands of dollars in savings. This comprehensive guide breaks down the best auto loan rates available right now. We compare top lenders across multiple categories, show you exactly what rates to expect based on your credit score, explain where to find the best deals, and give you actionable tips to secure the lowest rate possible. Whether you have excellent credit or are working to rebuild your score, this guide will help you navigate the auto financing landscape in 2026. As of early 2026, the auto loan market has stabilized somewhat from the volatility of previous years, but rates remain elevated compared to the ultra-low rates of 2020-2021. According to Bankrate
Your individual rate depends on several key factors: your credit score and credit history, the loan term length, whether you are buying new or used, the age and mileage of the vehicle (for used cars), your debt-to-income ratio, and the lender you choose. Understanding how these factors interact can help you secure a better rate. Here are the current average rates by credit score, compiled from data by NerdWallet and Experian: These figures represent averages across the market. The best lenders, particularly credit unions and online lenders, often offer rates significantly below these averages for qualified buyers. Conversely, buyers with challenged credit may face rates at the higher end of these ranges or beyond, especially at buy-here-pay-here dealerships. We have analyzed dozens of lenders to identify the best options across different categories. Whether you prioritize the lowest rate, the easiest application process, or flexibility for less-than-perfect credit, there is a lender on this list for you. Best for: Competitive rates and pre-qualification Capital One Auto Finance stands out for its Auto Navigator program, which lets you pre-qualify without a hard credit pull. This means you can see your real rate and monthly payment without hurting your credit score. The process is straightforward: enter your information, get pre-qualified, then shop at participating dealers with your financing already secured. Learn more about how to get pre-approved for a car loan. Capital One works with a vast network of dealers, making it convenient to find a participating location. However, you cannot use Capital One financing for private party purchases, and the vehicle must meet their age and mileage requirements (typically less than 10 years old with under 120,000 miles). Best for: Comparing multiple lenders Caribou operates as a lending marketplace rather than a direct lender. When you apply, they shop your loan to their network of partner lenders to find you the best rate. This can save you significant time compared to applying to each lender individually. See advantages of getting pre-approved before you shop. Caribou particularly excels at refinancing existing auto loans and handling lease buyouts. If you are currently in a lease and want to purchase the vehicle, or if you have an existing loan at a high rate, Caribou is worth considering. The platform is transparent about fees and provides multiple offers so you can compare terms side by side. Best for: Excellent credit and fast funding LightStream, a division of Truist Bank, offers some of the lowest rates in the industry for buyers with excellent credit. Their Rate Beat Program is particularly noteworthy: if you are approved by another lender for a lower rate, LightStream will beat that rate by 0.10 percentage points, subject to certain conditions. The application process is entirely online, and funding can happen as soon as the same day you apply. LightStream does not restrict you to dealer purchases—you can buy from a private party, at auction, or even refinance an existing loan. However, LightStream has strict credit requirements, and their best rates are reserved for borrowers with excellent credit scores and strong income. Best for: Existing customers and dealer purchases Bank of America offers competitive rates and the convenience of working with a major national bank. If you are already a Bank of America customer, especially a Preferred Rewards member, you can access additional rate discounts. The bank has relationships with thousands of dealers nationwide, making it easy to use their financing at the dealership. Bank of America also offers a straightforward online application process, and you can get pre-approved before shopping. However, their rates are generally not as low as credit unions or specialized online lenders for borrowers with top-tier credit. Best for: Bad credit and quick comparisons MyAutoLoan is a marketplace that connects borrowers with multiple lenders, making it an excellent option if you have less-than-perfect credit. Unlike many lenders that have strict minimum credit score requirements, MyAutoLoan works with borrowers whose scores are as low as 575. This accessibility makes them a valuable resource for buyers rebuilding their credit. The application process is quick—you can receive up to four loan offers within minutes of applying. This allows you to compare rates and terms without multiple hard credit inquiries. MyAutoLoan also supports private party purchases, which many traditional lenders do not. When shopping for auto loans, do not overlook credit unions. According to Investopedia and Bankrate, credit unions consistently offer lower auto loan interest rates than traditional banks and online lenders. Why do credit unions offer better rates? Credit unions are not-for-profit organizations owned by their members. Instead of maximizing profits for shareholders, they return earnings to members in the form of lower loan rates, higher savings rates, and reduced fees. According to data from the National Credit Union Administration, credit union auto loan rates are typically 1-2% lower than bank rates. For example, while a bank might offer a 7.5% APR to a borrower with good credit, a credit union might offer 5.9% for the same borrower. On a $30,000 loan over 60 months, that difference saves you approximately $1,200 over the life of the loan. Credit unions also tend to be more flexible with their lending criteria and may work with borrowers who have less-than-perfect credit. They often provide more personalized service and are willing to consider factors beyond just your credit score, such as your relationship with the credit union and your overall financial picture. The main drawback is that you must be a member to borrow from a credit union. However, membership requirements have become increasingly flexible. Many credit unions now serve broad geographic areas or specific employer groups, and some allow anyone to join by making a small donation to a affiliated charity. When you buy a car, the dealer will almost certainly offer you financing. While convenient, dealer financing is not always the best deal. Understanding the differences between dealer and bank financing can save you money. According to Bankrate, dealer financing has some advantages: it is convenient, you can complete everything in one place, and dealers sometimes offer promotional rates like 0% APR (usually for shorter terms and well-qualified buyers). Dealers also work with multiple lenders, so they can shop for rates on your behalf. However, dealer financing has significant drawbacks. The dealer acts as a middleman and may mark up the interest rate above what the lender actually offers. This markup, called the “dealer reserve,” can add 1-3% to your rate. On a $30,000 loan, that markup could cost you an extra $1,000 or more over the loan term. Bank or credit union financing, on the other hand, typically offers lower rates and more transparency. When you get pre-approved by a bank or credit union, you know exactly what rate you qualify for before walking into the dealership. This pre-approval also gives you negotiating power—you can focus on the car price rather than the monthly payment. The best strategy? Get pre-approved by a bank or credit union before shopping, then let the dealer try to beat that rate. If they can offer a lower rate through their financing, great. If not, you have your pre-approval as a backup. Securing the best auto loan rate requires preparation and strategy. Follow these steps to maximize your chances of getting a low rate: When applying for an auto loan, having your documents ready can speed up the process and improve your chances of approval. According to Bankrate, here is what you typically need: Having these documents organized before you apply can significantly speed up the approval process and demonstrate to lenders that you are a prepared, serious borrower. Used car loans typically come with higher interest rates than new car loans. According to the Wall Street Journal, this is because used cars represent higher risk for lenders. A used car has already depreciated, may have unknown maintenance issues, and has less collateral value than a new car. Typically, you can expect used car rates to be 1-2 percentage points higher than new car rates for the same borrower. However, the lower purchase price of a used car often means you pay less total interest over the life of the loan, even with a higher rate. If you are buying used, aim for a vehicle that is 2-4 years old. These cars have already experienced the steepest depreciation but are still new enough to be reliable and qualify for reasonable financing rates. Avoid cars older than 10 years or with more than 100,000 miles, as these may be difficult to finance or come with very high rates. If you already have a car loan, refinancing could save you significant money. According to Bankrate, you should consider refinancing your auto loan if any of the following apply: Before refinancing, check current auto refinance rates and use a refinancing calculator to determine your potential savings. Keep in mind that some loans have prepayment penalties, so factor that into your calculations. A good rate depends heavily on your credit profile. For borrowers with excellent credit (750+), anything under 6% is competitive. For good credit (700-749), rates under 7.5% are reasonable. If you have fair or poor credit, focus on finding the best rate available to you rather than comparing to averages. Even a rate of 10% might be a good deal if your credit score is in the 600s. Yes, you can get a car loan with bad credit, but you will pay higher interest rates. Lenders like MyAutoLoan work with credit scores as low as 575. Credit unions are often more willing to work with borrowers rebuilding their credit. You can also improve your chances by getting a co-signer, making a larger down payment, or choosing a less expensive vehicle. Absolutely. Pre-approval tells you exactly how much you can borrow and at what interest rate before you visit a dealership. This knowledge gives you negotiating power and prevents you from falling for dealer tricks like focusing on monthly payments rather than the total cost. With a pre-approval in hand, you can shop like a cash buyer and negotiate on price alone. Generally, no. While a 72-month loan lowers your monthly payment, it costs significantly more in interest over the life of the loan. You also risk being “underwater”—owing more than the car is worth—for most of the loan term. If you need a 72-month loan to afford the payment, you are likely buying more car than you can afford. Aim for 48-60 months maximum. Aim for at least 20% down on a new car and 10% down on a used car. A substantial down payment reduces your loan amount, may qualify you for a better interest rate, and protects you from negative equity. If you cannot afford at least 10% down, consider a less expensive vehicle or wait until you have saved more. Finding the best auto loan rate in 2026 requires research, preparation, and willingness to shop around. Do not accept the first offer you receive. Compare rates from at least 2-3 lenders, including at least one credit union. Even a single percentage point difference in APR can save you thousands over the life of your loan. Remember to check your credit before applying, get pre-approved before visiting dealers, and always read the fine print before signing any loan documents. If your credit needs work, take the time to improve your credit score before applying—it could save you thousands. Ready to find your best rate? Start by getting pre-approved from Capital One, LightStream, or your local credit union. Then use those offers to negotiate the best possible deal on your next vehicle. Happy car shopping! This guide is based on data and research from the following authoritative sources: Last updated: February 19, 2026. Rates and terms are subject to change. Always verify current rates directly with lenders before applying.Credit Score New Car Rate Used Car Rate Excellent (750+) 5.0% – 6.5% 5.5% – 7.0% Good (700-749) 6.0% – 7.5% 6.5% – 8.5% Fair (650-699) 8.0% – 10.5% 9.0% – 12.0% Poor (600-649) 11.0% – 14.0% 13.0% – 17.0% Bad (Below 600) 15.0% – 21.0% 17.0% – 25.0% Best Auto Loan Lenders for 2026
1. Capital One Auto Finance
2. Caribou (formerly AutoPay)
3. LightStream
4. Bank of America
5. MyAutoLoan
Credit Unions vs. Banks: Where to Find the Best Rates
Dealer Financing vs. Bank Financing: What You Need to Know
How to Get the Best Auto Loan Rate
Documents You Need for an Auto Loan Application
New Car vs. Used Car Loan Rates
When to Refinance Your Auto Loan
Frequently Asked Questions
What is a good auto loan rate in 2026?
Can I get a car loan with bad credit?
Should I get pre-approved before car shopping?
Is a 72-month car loan a good idea?
How much should I put down on a car?
Final Thoughts: Shop Around and Save
References and Resources
Current Auto Loan Rates in 2026
Credit Score New Car Rate Used Car Rate Excellent (750+) 5.0% – 6.5% 5.5% – 7.0% Good (700-749) 6.0% – 7.5% 6.5% – 8.5% Fair (650-699) 8.0% – 10.5% 9.0% – 12.0% Poor (600-649) 11.0% – 14.0% 13.0% – 17.0% Bad (Below 600) 15.0% – 21.0% 17.0% – 25.0% Best Auto Loan Lenders for 2026
1. Capital One Auto Finance
2. Caribou (formerly AutoPay)
3. LightStream
4. Bank of America
5. MyAutoLoan
Credit Unions vs. Banks: Where to Find the Best Rates
Dealer Financing vs. Bank Financing: What You Need to Know
How to Get the Best Auto Loan Rate
Documents You Need for an Auto Loan Application
New Car vs. Used Car Loan Rates
When to Refinance Your Auto Loan
Frequently Asked Questions
What is a good auto loan rate in 2026?
Can I get a car loan with bad credit?
Should I get pre-approved before car shopping?
Is a 72-month car loan a good idea?
How much should I put down on a car?
Final Thoughts: Shop Around and Save
References and Resources
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