Best auto loan rates and financing of July 2026

Next to a house, a car is the most expensive purchase most people will make. Whether you're buying new or used, or purchasing from a dealership or an individual, the right auto loan can save you thousands of dollars in interest and fees.

To find the best auto financing, CNBC Select evaluated dozens of lenders that offer auto loans based on rates, terms, fees, credit score requirements, down payments, customer service, vehicle restrictions and other criteria. To learn more about how we made our picks, read our methodology.

Who's this for? Want to maximize comparison shopping? MyAutoLoan is a fully online platform that connects car buyers with up to four pre-approved loan offers in just a few minutes. You'll only get a hard credit inquiry if you apply with a lender you're matched with.

Standout benefits: MyAutoloan offers a solid selection of auto financing, including new and used car loans, lease buyouts and refinancing. Get approved with a FICO Score of 600 or apply with a co-signer or co-borrower.

Who's this for? Carvana has no minimum credit score requirement — accepting borrowers with bad credit, no credit and even past bankruptcies — and the income requirement is only $10,000 per year. Subprime borrowers may need to make a larger down payment and receive a higher interest rate.

Standout features: Carvana streamlines car shopping, financing and delivery into one seamless process. Get your vehicle from one of its car vending machines or have it delivered to your driveway. There's a seven-day return policy if you're not happy and gap insurance and vehicle protection plans are available.

Who's this for? Not only does CCU have the lowest starting APR on this list, but borrowers who sign up for autopay and purchase their vehicle through the credit union's online car-buying service are eligible for a combined 0.75-percentage-point rate discount.

Standout benefits: CCU has flexible loan terms and allows co-signers and co-borrowers. Joining CCU only requires a one-time $5 fee to the Consumers Cooperative Association and a $5 deposit in a savings account.

Who's this for: LightStream approves loans for as little as $5,000 or as much as $100,000. It will deposit funding directly into your account, allowing you to negotiate like a cash buyer with private sellers and dealerships.

Standout features: There are no limits on vehicle age, mileage, make or model. In addition to new and used car purchases, LightStream approves financing for buyouts and refinancing, as well as motorcycle purchases and refinancing. Borrowers enjoy a 0.50% rate discount with autopay.

Who's this for? Use Capital One's Auto Navigator to browse used and new cars from participating dealerships and get prequalified with a soft credit check.

Standout benefits: Existing Capital One customers may be eligible for additional discounts on top of already competitive APRs.

Who's this for? PenFed Credit Union ranked near the top of J.D. Power's 2024 consumer lending study, which measures satisfaction with customer service, meeting borrowing needs, trust, ease of doing business, digital channels and other criteria. It also received an A+ from the Better Business Bureau, the agency's highest grade.

Standout benefits: If you purchase your car through PenFed's car-buying service, powered by TrueCar, you'll be eligible for cash-back incentives and special loan rate discounts.

Who's this for? Autopay offers both traditional and cash-back financing, as well as lease-buyout financing. It works with borrowers of all credit profiles, providing prequalification without a hard credit check.

Standout benefits: Lenders in the Autopay network approve loan terms of up to 96 months, much longer than most competitors.

Who's this for? The largest used-car retailer in the U.S., CarMax offers financing for the cars it sells. Buyers benefit from its large inventory and "no-haggle" policy.

Standout benefits: CarMax's Three-Day Payoff program allows borrowers who find a better rate or term to change lenders within three business days at no extra cost. The company doesn't require a minimum credit score for approval.

Who's it for? Tenet specializes in financing for EVs, with fast approval and funding, no fees and the same rate available for both new and used vehicles

Standout benefits: Borrowers can roll the cost of their home charger, permits and installation into their loan, thanks to Tenet's partnership with Treehouse.

An auto loan is a form of installment financing specifically designed for purchasing a car. You'll pay back the balance (plus interest) in fixed monthly increments over a specified term.

There are three main ways you can get an auto loan:

• Dealer financing: Many auto dealers provide their own financing options. While convenient, this option often results in higher interest rates.
• Bank or credit union: With a traditional bank or credit union, it can take a couple of business days to get approval and funding. Interest rates are usually lower than financing with a dealer and you may have the option to refinance if rates go down.
• Online lender: Some digital-first lenders like Carvana offer more credit score flexibility and faster approval speed than traditional banks. Sites like MyAutoloan will present a variety of offers from participating lenders, making comparison shopping easier.

It's common for auto loan lenders to require a down payment equivalent to a certain percentage of the vehicle price. Experts often recommend aiming for an upfront payment of between 10% and 15% of the vehicle price.

In general, a higher down payment can help you qualify for a lower interest rate and bring down your monthly payment.

When financing a car, you want to make sure you secure the best terms your financial and credit situation can get you. To do that, consider these factors:

Your credit score
A high interest rate can add thousands of dollars to what you pay over the loan's lifetime. In general, the best rates are reserved for borrowers with high credit scores. If your credit could use some work, take time to improve your score before shopping for a car.

Your down payment
A bigger down payment often leads to a lower APR and smaller monthly payments. Typically, you want to put down 20% on a new car or 10% on a used one, depending on your finances.

Available interest rate
The lower rate you get, the less you'll pay in interest charges over the life of the loan. This can lead to thousands of dollars in savings. Don't worry about the impact multiple hard inquiries will have on your credit: Most credit scoring models will count car financing inquiries made within 14 to 45 days of each other as one.

Available term lengths
Get the shortest loan term length you can fit into your budget, since a longer term means more interest paid over the life of the loan. Plus, many financial institutions will give you a higher interest rate to begin with for choosing a longer loan.

Your monthly payment
Your monthly car payment consists of the loan principal and interest for that month. A smaller monthly payment is usually better on your bank account but it could mean you wind up paying more interest in the long run.

Lenders use several factors to determine the interest rate to give you on an auto loan:

• Credit score: This is one of the most important factors since it paints a picture of your creditworthiness — or how likely you are to repay the loan in full. A higher credit score means you may qualify for some of the lower interest rates.
• Loan-to-value ratio: This refers to how much of a down payment you plan to make on the vehicle compared to the loan amount you're borrowing. A higher loan-to-value ratio means that you'll have significantly more debt than equity in the vehicle. Generally, higher loan-to-value ratios are considered riskier so you may be on the hook for higher interest rates.
• Debt-to-income ratio (DTI): As with any other form of credit, lenders also weigh the amount of debt you have in relation to your income. Generally, a lower DTI helps qualify you for lower rates.
• Vehicle age: Purchasing an older car can mean higher interest rates. This is because older cars can have a greater chance of needing costly repairs, which means more risk for the lender.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every auto loan list is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best auto loans.

To determine the best auto loans, CNBC Select analyzed more than a dozen car loan providers, including banks, dealerships and online marketplaces.

When narrowing down and ranking the best car loans, we focused on the following features:

• Loan sizes: The above lenders provide a variety of loan sizes, ranging from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes.
• Loan terms: Each lender on our list provides multiple financing options to support a variety of budgets and timelines.
• Credit requirements: Lenders with flexible credit requirements were weighed more heaily. In addition, each lender on our list allows borrowers to add a co-signer or co-borrower.
• Prequalification: Each lender allows borrowers to apply for prequalification, which allows you to get estimated loan terms without hurting your credit score.
• Online user experience: The lenders on our list make it easy to complete all or most of the preapproval and application process online.
• Fees: The lenders on our list do not charge an origination fee, application fee or prepayment penalty.
• Customer service: We considered whether a lender had a convenient online application, robust customer service hours, an online chat feature and a mobile app. We also considered how it was ranked by J.D. Power and the Better Business Bureau.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

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