Whether you’re buying new, used, or looking to refinance, finding the right car loan can save you thousands in interest over the life of your loan. From banks to credit unions to online lenders, the U.S. has many auto loan providers to choose from—but some stand out with better rates, faster approval, and more flexible terms.
Here are the 12 best car loan companies in the USA that combine affordability, reliability, and convenience in 2025.
1. PenFed Credit Union – Best Overall Rates
Why it’s great: PenFed offers some of the lowest interest rates available, even for borrowers with average credit. They finance both new and used vehicles and have generous loan terms up to 84 months.
APR: Starting at 5.19%
Perks: No origination fees, up to 125% financing
Best for: Low rates and long-term financing
2. LightStream – Best for Good Credit Borrowers
Why it’s great: LightStream, a division of Truist, provides unsecured auto loans with no fees and very competitive rates—especially if you have excellent credit.
APR: Starting at 6.49% (with AutoPay)
Perks: Same-day funding, no collateral required
Best for: Excellent credit borrowers
3. Capital One Auto Finance – Best Pre-Approval Experience
Why it’s great: With the Auto Navigator tool, Capital One lets you pre-qualify with no credit score impact. You can shop vehicles and view personalized rates in real time.
APR: Around 6.75% (varies by credit profile)
Perks: Real-time shopping + financing tools
Best for: First-time buyers and credit-conscious borrowers
4. Bank of America – Best for Existing Customers
Why it’s great: Bank of America offers rate discounts to customers with qualifying checking or investment accounts, making it ideal for loyal users of the bank.
APR: Starting at 6.29% (with discounts)
Perks: Rate discounts up to 0.5%, simple online process
Best for: Existing BofA clients
5. Navy Federal Credit Union – Best for Military Members
Why it’s great: If you’re a service member, veteran, or family member, NFCU offers very low interest rates, excellent customer service, and 100% financing options.
APR: Starting at 5.14% for new cars
Perks: Up to 96 months loan term, pre-approval available
Best for: Active-duty military and their families
6. Carvana – Best for Buying & Financing Online
Why it’s great: Carvana offers a fully online car buying and financing experience. You can shop, get approved, and schedule delivery from your couch.
APR: Starting at 6.85%
Perks: 7-day return policy, fast financing
Best for: Online-only car buyers
7. Consumers Credit Union – Best for Used Cars
Why it’s great: This credit union is available to all U.S. residents and offers competitive rates—especially on older or higher-mileage vehicles.
APR: Starting at 5.74% for used cars
Perks: Loan amounts up to 125% of value
Best for: Used car buyers and those refinancing
8. OpenRoad Lending – Best for Refinancing
Why it’s great: If you’re stuck with a high-interest car loan, OpenRoad Lending specializes in auto refinance and lease buyouts, with fast approvals and low rates.
APR: Starting at 5.99%
Perks: No application fees, works with fair credit borrowers
Best for: Refinancing car loans
9. AutoPay – Best for Comparison Shopping
Why it’s great: AutoPay connects borrowers with a network of banks and credit unions, giving you multiple offers to compare and choose the lowest rate.
APR: Starting at 5.89% (varies by lender)
Perks: Fast pre-qualification, great for refinancing too
Best for: Those who want to compare offers easily
10. LendingTree – Best Auto Loan Marketplace
Why it’s great: LendingTree allows you to compare car loans from multiple lenders with just one application. It’s quick, simple, and ideal for finding the best rate without contacting each lender individually.
APR: Varies by lender and borrower profile
Perks: Wide network, free to use
Best for: Deal-seekers and rate shoppers
11. RefiJet – Best for Personal Loan Matching
Why it’s great: RefiJet helps users refinance their car loans and may help people with less-than-perfect credit secure better rates or lower payments.
APR: Competitive based on profile
Perks: Personal loan advisors, options for all credit types
Best for: Borrowers with fair to poor credit
12. myAutoloan – Best for Multiple Offers in One Place
Why it’s great: This platform allows borrowers to receive up to four loan offers instantly. It’s perfect if you want quick comparisons for both purchases and refinancing.
APR: Varies by lender
Perks: Pre-qualification in minutes, no impact on credit
Best for: Fast approvals and comparing multiple options
FAQs
1. What’s a good APR for a car loan in 2025?
A good APR for borrowers with excellent credit is between 5–6% for new cars and slightly higher for used. Always compare rates to find the best offer for your credit score.
2. Is it better to get a car loan from a bank or a credit union?
Credit unions often offer better rates and more personalized service, while banks may have more online tools and broader availability.
3. Can I get a car loan with bad credit?
Yes. Lenders like RefiJet, AutoPay, and some credit unions work with borrowers with fair or poor credit. Expect slightly higher APRs and smaller loan amounts.
4. How can I lower my car loan payments?
You can lower your payments by choosing a longer term, refinancing to a lower APR, or making a larger down payment to reduce the loan principal.
Conclusion
Choosing the right car loan company can make a huge difference in your finances. Whether you prefer a credit union for lower rates, a bank for convenience, or an online lender for speed, these 12 companies offer some of the best options in the U.S. for 2025. Be sure to compare multiple offers and get pre-approved to lock in the best deal before you drive away.