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Last updated: May 11, 2026The Best Auto Loans of 2026
AUTOPAY, PenFed Credit Union, and LendingTree are among our top-ranked loan providers.
Best for Loan Refinancing
Editor's Rating:
3.9/5
3.9/5
Starting APR: 4.85%
Benefits:
- Excellent refinancing options
- Streamlined loan comparison platform
- Low starting APR
Best Direct Lender
Editor's Rating:4.8/5
4.8/5
Starting APR: 3.39%
Benefits:
- Flexible loan terms and low starting APR
- Credit union membership benefits
- Dedicated service for buying new cars
Best Loan Marketplace
Editor's Rating:4.3/5
4.3/5
Starting APR: 3.39%
Benefits:
- Fast loan comparison and approval process
- Flexible loan terms with low starting APRs
- Options for applicants in financial duress
Key Takeaways: The Best Auto Loans of 2026
AUTOPAY, PenFed Credit Union, and LendingTree are among the best auto loan providers in 2026.
- AUTOPAY is the best option for loan refinancing; PenFed is the top direct lender; LendingTree leads for comparing multiple loan offers.
- Minimum APRs start as low as 3.39% with PenFed and LendingTree, well below the national average of 7.3% for financed vehicles.
- Auto loans account for more than $1.6 trillion in outstanding U.S. consumer debt.
- Before applying, prequalify using a soft credit pull to check offers without affecting your credit score.
Between banks, credit unions, online lenders, car manufacturers, and dealerships, it’s hard to know where to finance your vehicle. That’s why we’re here. Below, we’ll break down the providers based on interest rates, loan terms, preapproval features, refinancing options, and more to help you find the right lender.
As always, be sure to read the fine print carefully to verify terms before proceeding with any auto loan offer.
Summary of the Best Auto Loans
- Best for Loan Refinancing: AUTOPAY
- Best Direct Lender: PenFed Credit Union
- Best Loan Marketplace: LendingTree
- Best for Car Shopping: CarGurus
- Best for Low Credit: Auto Credit Express
Compare the Best Auto Loans By Category
| Auto loan provider | AUTOPAY | PenFed Credit Union | LendingTree | CarGurus | Auto Credit Express |
|---|---|---|---|---|---|
| Type of provider | Loan marketplace for comparing lenders | Direct lender for auto loans | Loan marketplace for comparing lenders | Loan marketplace with all-in-one car buying and financing | Loan marketplace for low credit applicants |
| Loan terms (time to repay) | 24-96 months | 36-84 months | 12-96 months | 36-72 months | 12-96 months |
| Minimum annual percentage rate (APR) | 4.85% | 3.39% | 3.39% | 7.64%, with 0% for limited-time promos | 3.99%, but rates are often higher for low credit borrowers |
| Minimum loan amount | $2,500 | $500 | $500 | $5,000 | $5,000 |
| BBB rating (A-F) | A+ | Not accredited | A+ | A+ | A+ |
| Trustpilot rating (out of 5) | 4.4 | 3.5 | 4.5 | 3.6 | 4.6 |
Breaking Down the Best Auto Loans
1. AUTOPAY - Best for Loan Refinancing
3.9
Editor's Rating:
- Excellent refinancing options
- Streamlined loan comparison platform
- Low starting APR
Terms vary by lender- Fees not always transparent
Why we chose it
AUTOPAY is an auto loan marketplace on which you can compare multiple loans from different providers. We particularly recommend it if you’re looking to refinance your loan, whether to obtain another loan with lower premiums or to receive cash back (i.e. cash-back financing). You can also obtain a loan to purchase a new or used car, or to buy out your lease.
Additionally, AUTOPAY’s starting APR of 4.85% is fairly low, though rates will depend on what partner lenders are offering. To get started, just fill out a simple online form and agree to a soft credit pull, and you’ll see what loans you’re preapproved for.
Who it’s best for
People who need co-signers, drivers who want to refinance their auto loans, people who want longer loan terms, individuals who prefer loan aggregators
TIP:
You can build credit by paying bills on time, reducing outstanding debt, opening an account for a secured credit card (a card backed with a deposit), and keeping old credit accounts open, even if you aren’t using them.
2. PenFed Credit Union - Best Direct Lender
4.8
Editor's Rating:
- Flexible loan terms and low starting APR
- Credit union membership benefits
- Dedicated service for buying new cars
- Requires membership
- Limited physical locations
PenFed is a major federal credit union that offers auto loans starting at $500, with zero origination fees. Its APRs are competitive with rates starting at 3.39% APR for new cars. You must be a member to apply for a loan, but it’s easy to join, with benefits including gap insurance, roadside assistance, car rental discounts, and more.
As a member, you can also take advantage of PenFed’s Car Buying Service with discounts on APRs and up to $3,000 off vehicles from select brands. To get started, simply apply on PenFed’s site to prequalify with a soft credit pull that won’t affect your credit score. Be aware that applicants usually must have a high credit score to receive the best rates.
Who it’s best for
People who want to buy a new car, people who want gap insurance, people who have high credit scores, consumers who want to reap the benefits of credit union membership
3. LendingTree - Best Loan Marketplace
4.3
Editor's Rating:
- Fast loan comparison and approval process
- Flexible loan terms with low starting APRs
- Options for applicants in financial duress
- Partner-dependent pricing
- Limited underwriting control
Why we chose it
LendingTree is an online marketplace where you can compare auto loans from 300 lenders. You fill out a single form, undergo a soft credit pull that won’t affect your credit score, and get matched with up to five lenders. With access to multiple lenders at once, LendingTree offers a wide range of loan rates, terms, and amounts you can choose from.
Loan rates do vary depending upon the lender, and as of April 2026, the lowest APR from a LendingTree partner is for PenFed at 3.39%, listed previously in our analysis. You’ve also got options with partner lenders to add a co-signer or reduce premiums by making a large down payment on your chosen vehicle.
Who it’s best for
People who want to compare multiple auto loans, people looking for the lowest APR, consumers with any credit score
DID YOU KNOW?
Auto loans comprise one of the consumer credit categories in the U.S., with more than 1.6 trillion in outstanding debt.1
4. CarGurus - Best for Car Shopping
- All-in-one car shopping and financing platform
- Easy comparison shopping process
- Variety of partner dealers and lenders
Why we chose it
Car Gurus is a dedicated car sale platform that integrates auto financing for one streamlined process. You simply browse for cars from partner dealers, then view financing offers from lenders—all in one go. Each car listing features a monthly payment estimate to help you budget, and you can prequalify for offers with a soft credit pull that doesn’t affect your credit score.
While you’re limited to vehicles from partner dealerships, Car Gurus has a big network of partner dealers from which you can choose. Be aware your prequalified offer is not final, and dealers may offer you a different one after you accept it and undergo a hard credit pull, which does affect your credit score.
Who it’s best for
People seeking a one-stop car shopping and financing platform, consumers who want to compare car financing options, car shoppers who want access to variety
5. Auto Credit Express - Best for Low Credit
3
Editor's Rating:
- Accessible loans for low credit applicants
- Quick process to prequalify
- Large network of dealers and lenders
- Rates vary widely
- Dealer-driven experience
Why we chose it
Auto Credit Express is our pick for consumers with low credit due to its dedicated offerings. The process is easy: simply apply and quickly get matched with partner auto dealers, who then work with lenders to finance your purchase. Many partner lenders and dealers accept co-signers or co-borrowers, which increases your chances for easy approval despite your credit.
While the platform itself doesn’t charge an origination fee, partner lenders may do so. Plus, its auto loan rates—though often higher than those offered to consumers with good credit—are expected of the subprime loans offered to low credit consumers. Since offers will vary by dealer and lender, be sure to read the fine print before proceeding.
Who it’s best for
Low credit borrowers seeking higher chances of loan approval, people who want to comparison shop, consumers who prefer a large network of partner lenders
Frequently Asked Questions
Whether you should finance your car with a bank or dealership will depend on what you’re looking for and your individual circumstances.
Dealership loan pros and cons:
- You get the convenience of working through their partnered lender.
- Your interest rates will be lower if you have good credit.
- Your lender options will be limited.
Bank loan pros and cons:
- If you’re an existing customer, you can utilize membership discounts and benefits.
- You’ll have more options to choose from within your bank’s existing network.
- You might have a limited amount of car types to choose from.
A 72-month car loan (six-year loan) is a good idea if:
- You want an expensive vehicle: Longer loan terms mean you can spread out the monthly payments of a costly vehicle, helping you afford it in the short term.
- You’re on a budget: Longer loan terms generally come with lower monthly payments, which is good if you’re in a tight financial situation.
- You want to refinance your vehicle: Long loan terms give you the option to refinance your vehicle and generate some extra cash if you need it.
A 72-month loan may not be the best choice if you want to minimize interest costs, since longer terms mean more interest accrues over time — even if monthly payments are lower. It’s also a poor fit if you’re financing a less expensive vehicle, where the added interest over six years may outweigh the benefit of smaller payments. Additionally, drivers who tend to trade in or sell their cars frequently may find themselves underwater on a long-term loan, owing more than the car is worth.
When you start making on-time payments back for your loan, expect your credit score to start increasing within 60 to 120 days. Building a history of on-time payments and maintaining your loan for longer periods of time can increase your credit score.
Financial experts recommend spending no more than 10 to 15 percent of your monthly income on your car payment. So, if you make $4,000 a month, a reasonable car payment amount would be about $400.
Methodology - How We Review Providers
- Direct provider consultation: We obtain information directly from providers to learn the ins and outs of their organizations, including their rates, optional add-ons, availability, discounts, lending partners, minimum credit scores and more. Our team has worked with dozens of lenders and aggregators to get you the most reliable information on their plans, policies, and procedures.
- Independent rating systems: We rely on third-party rating systems to evaluate the financial strength, customer satisfaction, and customer service ratings of auto loan providers. Moody’s, BBB, and Trustpilot publish ratings, reviews, and credit scores to help get the most accurate information on lender financial scores and customer care quality.
Learn more about our ratings and methodology sources.
Sources
Center for Microeconomic Data. Federal Reserve Bank of New York. (2025).
https://www.newyorkfed.org/microeconomics/hhdc.html
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