1. Bank of America
Best for: Preapproval and low interest rates
Bank of America is a top choice for car loans thanks to its competitive APRs and quick online preapproval process. They offer loans for new and used cars, refinancing, and lease buyouts. Their APRs start as low as 5.99% for excellent credit, and existing customers may receive rate discounts of up to 0.50%. You can finance directly through BoA or use their network of participating dealerships. They also offer flexible terms ranging from 12 to 75 months.
2. Capital One
Best for: Online prequalification and used car financing
Capital One is known for its Auto Navigator tool, which allows you to pre-qualify without affecting your credit score. This is ideal for comparison shopping. They partner with a wide network of dealerships and provide financing for new and used vehicles. While they don’t disclose rates upfront, they typically cater to buyers with fair to good credit (580+). The user-friendly platform and soft credit checks make Capital One ideal for first-time buyers or those with limited credit history.
3. LightStream (a division of Truist Bank)
Best for: Excellent credit borrowers
LightStream offers some of the lowest auto loan rates in the industry, starting at as low as 3.99% for borrowers with excellent credit. They provide unsecured loans, meaning you don’t need to use the vehicle as collateral. You can use the funds to purchase from any seller—dealer or private party. LightStream also offers same-day funding and a Rate Beat Program, where they’ll beat any competing rate by 0.10%. It’s a perfect option if you have strong credit and want flexibility.
4. PenFed Credit Union
Best for: Competitive rates and military-friendly services
PenFed offers auto loans to both members and non-members, with some of the most competitive rates—starting at around 5.24% APR for new cars. They also finance used cars and offer refinancing. You can get loans for up to 84 months and financing for up to 125% of the vehicle’s value, making it a strong choice if you need help covering taxes and fees. While PenFed has a military background, anyone can join by opening a savings account.
5. Navy Federal Credit Union
Best for: Active-duty military, veterans, and their families
Navy Federal consistently ranks among the best for military members. They offer some of the lowest auto loan rates—often under 5% for new cars and lower-than-average rates for used vehicles. Terms extend up to 96 months, and they have a user-friendly app for managing loans. NFCU is especially generous when it comes to financing older vehicles, and they even offer discounts for active-duty service members.
6. Consumers Credit Union
Best for: Used car buyers and long loan terms
Consumers Credit Union offers auto loans starting at around 5.44% APR, with terms up to 84 months. What makes them stand out is their willingness to work with older vehicles and higher-mileage used cars, which many traditional banks won’t finance. Like PenFed, they are open to all U.S. residents—you just need to pay a small membership fee. They’re a great option for those who want to buy from private sellers or need longer repayment flexibility.
7. Chase Bank
Best for: Dealer network financing and convenient online tools
Chase Bank is one of the largest auto lenders in the U.S. and partners with over 10,000 dealerships nationwide. They provide a streamlined online process, including loan calculators and prequalification tools. While they don’t publish exact APRs, borrowers with good to excellent credit often secure highly competitive rates. Their MyCar platform makes it easy to browse cars, apply for financing, and manage your loan—all in one place. Existing Chase customers may also qualify for special offers or rate reductions.
8. Ally Financial
Best for: Flexible leasing and financing options
Ally Bank, formerly GMAC, is a strong choice for buyers who want flexible loan structures or lease options. They offer standard car loans, SmartLease programs, and even balloon financing—ideal if you want lower monthly payments with a larger final payment. Ally is also known for financing certified pre-owned vehicles and working with a wide dealership network. They’re a good fit for buyers who want both traditional and alternative financing models under one roof.
9. Carvana Financing
Best for: Online used car buying and financing
Carvana isn’t a traditional bank, but its in-house auto financing makes it a standout for online shoppers. If you’re buying a used car from Carvana, they offer instant loan decisions with no hidden fees. They accept a wide range of credit scores, though the best rates go to borrowers with scores above 700. Carvana loans are convenient, quick, and fully integrated with their online car buying platform, making the entire process from purchase to financing seamless.
10. AutoPay
Best for: Auto loan refinancing
AutoPay is an online lending marketplace that specializes in auto refinancing but also offers new and used auto loan options. They partner with banks, credit unions, and other lenders to help borrowers find the lowest rate available. AutoPay is particularly useful for borrowers with improving credit who want to lower their existing loan’s interest rate or payment. Their digital-first platform offers a quick approval process and personalized support through dedicated loan advisors.
11. LendingTree Auto Loans
Best for: Comparing multiple loan offers
LendingTree is not a direct lender but a loan marketplace that lets you compare offers from multiple banks and credit unions. With one application, you can receive prequalified quotes from several lenders. This is particularly useful if you want to find the lowest possible interest rate or tailor your loan based on monthly budget. LendingTree is great for borrowers who want to shop around quickly and understand all their options before committing.
12. MyAutoLoan.com
Best for: Borrowers with poor or average credit
MyAutoLoan.com connects you with up to four lenders after you complete a single online application. They’re especially helpful for borrowers with fair to poor credit (as low as 575), and offer new car loans, refinancing, lease buyouts, and even private party loans. If traditional banks have turned you down or quoted high APRs, this marketplace can open the door to more competitive offers.
Tips for Choosing the Right Bank for a Car Loan
Check your credit score first: Your credit rating will determine what rates and loan terms you qualify for.
Compare prequalification offers: Use platforms like LendingTree, Capital One Auto Navigator, or Bank of America to see what you may qualify for—without affecting your credit score.
Read the fine print: Look out for prepayment penalties, loan origination fees, and required down payments.
Watch the loan term: Longer terms lower your monthly payment but can cost you more in interest over time.
Consider refinancing later: If your credit improves, refinancing through LightStream, AutoPay, or PenFed could save you thousands.
FAQs
Q1: Can I get a car loan with no down payment?
Yes, some lenders offer 0% down loans, but they often come with higher interest rates. A down payment reduces the loan amount and can help you qualify for better terms.
Q2: Is preapproval the same as prequalification?
Not quite. Prequalification is a soft check with estimated offers. Preapproval is more formal, involves a hard credit pull, and signals serious buying intent.
Q3: How long does it take to get approved for a car loan?
Approval can be instant (especially online), but funding typically takes 1–3 business days, depending on the lender.
Q4: Should I go for the lowest monthly payment?
Not always. A low monthly payment usually means a longer loan term, which could increase the total interest paid. Consider the full loan cost, not just the monthly figure.
Final Thoughts
There’s no one-size-fits-all bank for auto loans—the best lender for you depends on your credit score, income, vehicle choice, and financial goals. For low interest rates and great digital tools, consider LightStream, Bank of America, or Capital One. If you’re active military, Navy Federal or USAA are top-tier. And if you’re still comparing, marketplaces like LendingTree or AutoPay can help you make an informed decision.