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The Best New Car Loans of 2024

How to get the best rates on your new car loans.

Best New Car Loans for Interest Rates
LendingTree Logo

Starting APR: 4.5%
Loan length: Up to 96 months

Pros + Cons
Lowest APRs on the market
Can seamlessly compare rates with different providers
X Lenders may do hard credit check, depending on their individual policies

Best New Car Loans for Drivers With Bad Credit
Auto Credit Express Logo

Starting APR: 5.14%
Loan length: Up to 72 months

Pros + Cons
Loans available to drivers with bad credit
Special financing discounts for military
X Must have high income as a driver with low credit

Best New Car Loans From a Bank
Bank of America Logo

Starting APR: 5.99%
Loan length: Up to 72 months

Pros + Cons
Discounts available to Bank of America members
Easy approval process
X Not the lowest APR

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Let our Perfect Policy Connectors do the work for you!

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Our Commitment to You: At, our mission is to help you make smarter auto insurance decisions with confidence. We follow a strict editorial policy to ensure the accuracy of information presented is rooted in data and vetted by thousands of hours of research. While we may earn compensation from our partners, this does not influence our assessments and recommendations. Learn more about how we make money.

Average annual percentage rates (APR) for car loans jumped to 7.18% in 2023, which is a 15-year high in the U.S.1 As interest rates for auto loans continue to increase due to persistent inflation, you may find it difficult to find a loan that makes sense for your budget. Despite the financial strain of the economy, it’s important to remember that there are smart shopping strategies you can employ to earn lower APRs for your auto loans, like bringing up your credit score, taking advantage of membership discounts, and applying for lower loan terms.

Read on to learn about our top picks for auto loan providers and how you can employ smarter strategies to ensure you’re getting the best loan terms and lowest rates. We’ve also ranked the best auto loans overall and created an auto loan calculator to estimate your payments.

Editor’s Note (Last Updated: May 22, 2024) – We updated this list of the best auto loans for new cars to reflect the latest interest rates and details.

Blue CarBest New Car Loans of 2024

  1. LendingTree – Best New Car Loans for Interest Rates
    LendingTree is our top pick for car loans with the best interest rates. Rates start at 4.50 percent with LendingTree, which are currently the lowest in the market.
  2. Auto Credit Express – Best New Car Loans for Drivers With Bad Credit
    As an aggregator, Auto Credit Express will provide you with multiple lending options as a driver with bad credit. As long as you can provide proof of high income, you will be able to find competitive rates even with low credit.
  3. Bank of America – Best New Car Loans From a Bank
    With perks for Bank of America members and one of the longest bank legacies in the country, Bank of America is our top pick if you’re looking for a bank car loan.

Summary of the Best Auto Loans

  1. 1.

    Best Interest Rates: LendingTree

  2. 2.

    Best New Car Loans With Bad Credit: Auto Credit Express

  3. 3.

    Best New Car Loans From a Bank: Bank of America

  4. 4.

    Best New Car Loans From a Credit Union: PenFed Credit Union

Comparison of the Best Auto Loans for New Cars of 2024

Feature LendingTree Auto Credit Express Bank of America PenFed Credit Union
Best for Lowest interest rates Drivers with bad credit Bank loans Credit union loans
Loan provider or aggregator Aggregator Aggregator Loan provider Loan provider
Loan term 12-96 months 36-72 months 48-72 months 36-72 months
Minimum APR 4.50% 5.14% 5.99% 4.74%
Loan amounts Varies by lender, up to $500,000 Varies by lender Up to $85,000 for prequalification $15,000-$150,000
BBB accreditation? Yes Yes Yes No
BBB rating (A-F) A+ A+ A- A+
Trustpilot rating (out of 5) 4.36 4.5 1.9 4.3
Year founded 1996 1999 1904 1935

Detailed List of the Best Auto Loans for New Cars

1. Best Interest Rates - LendingTree
LendingTree Logo

What We Like Most:

  • Lowest minimum APR of 0.99 percent
  • Loan amounts of up to $4 million, depending on provider
  • Refinancing available

LendingTree is an auto loan aggregation service that lets you view multiple offers from different lenders at once. LendingTree is better for those with good credit, as it offers the lowest interest rates of any service we’ve seen, with APRs starting at 4.5 percent. Not everyone will qualify for this super-low APR, but if you have a great credit score, LendingTree is a fantastic option.

ProsWho It's Best For
  • pro
    Someone who wants to compare rates from multiple providers at once
  • pro
    Someone who wants an APR as low as 4.5 percent
  • pro
    Someone who wants an LTV (loan-to-value) ratio up to 125 percent
  • pro
    Someone who wants excellent customer service
ConsWho It's Not Best For
  • con
    Someone who wants a 24/7 call center

Low APRs

LendingTree has the lowest minimum APR we’ve seen from any loan provider or loan aggregator, starting at 4.5 percent. This is a solid option for someone who has great credit, is gainfully employed, and has a high income. If that’s not you, keep in mind that LendingTree doesn’t have a minimum credit score requirement and can connect you with a provider that will accept your score or lack of score.

Variety of Term Lengths

Since LendingTree lets you shop multiple lenders at once, you’ll be able to find loan terms from 12 to 96 months, or one to seven years. Of course, the longer your loan term, the smaller your monthly payment will be. However, a longer term length will result in more interest payments, so if you’re in a good spot financially, we recommend getting a short-term loan with a low APR. Our auto loan calculator shows you how different loan terms affect your monthly payments and the amount of interest you’ll pay over the lifetime of the loan.

Wide Range of Loan Amounts

Your loan amount will depend on your provider, but you can get up to $500,000 from LendingTree, which is more than enough for the majority of American drivers. Another way to look at a loan amount is the loan-to-value (LTV) ratio. LendingTree has providers that offer up to 125 percent of your vehicle’s value. That means that if you total your car, you’ll receive 25 percent more than its current value to pay for a new car. This is helpful because your car’s value will have depreciated from when you first purchased it.


We recommend buying gap insurance to cover the remainder of your auto loan if you total your car.

2. Best New Car Loans With Bad Credit - Auto Credit Express
Auto Credit Express Logo

What We Like Most:

  • No minimum credit score
  • A+ rating from the Better Business Bureau
  • Lease buyouts offered

If you want to shop for multiple loan providers at once, check out Auto Credit Express. Like LendingTree, it’s not a lender itself, but it can pre-qualify you for loans with multiple lenders. That way, you can shop the entire market in one place without filling out a million online forms with separate lenders. If you’re looking for an auto loan with low credit, Auto Credit Express is for you.

ProsWho It's Best For
  • pro
    Anyone who wants low interest rates
  • pro
    Anyone who lives in the U.S. or Canada
  • pro
    Anyone with poor credit but proof of income, eligibility, and so on
  • pro
    Anyone who has filed for bankruptcy
ConsWho It's Not Best For
  • con
    Someone with bad credit and a monthly income of less than $1,500 to $2,000 from a single source
  • con
    Non-residents of the U.S. or Canada

Good for Bad Credit

If you have bad credit, unfortunately, expect to find higher APRs. You’ll be considered less trustworthy than someone with good credit. Some loan providers have minimum credit scores and won’t cover you at all if you don’t reach their threshold. Auto Credit Express is ideal for someone with bad credit. While APRs, loan amounts, and terms will vary by lender, you can find an auto loan from Auto Credit Express if you can prove the following:

  • At least half a year at your current job
  • At least three years of work history
  • No large gaps in your employment
  • Monthly income of at least $1,500 to $2,000 from a single source
  • A working landline or cell phone contract in your name
  • Residency
  • Six to eight personal references, including their phone numbers, names, and addresses

Auto Credit Express also has options for people with no credit and people who have filed for bankruptcy.

Great Ratings

Auto Credit Express has accreditation and an A+ rating from the Better Business Bureau (BBB). The company’s rating is partly based on the following factors:

  • Advertising practices: Auto Credit Express is truthful in its advertising and uses the BBB name correctly.
  • Amount of time in business: Auto Credit Express’s 25 years in business speak to its reliability.
  • Complaint history with the BBB: The company has only had 10 closed customer complaints in the past three years, and seven closed in the last year. This is a low number compared to other loan aggregation companies.
  • Honoring of BBB commitments: The BBB does not list any mediations or arbitrations that it has failed to settle with Auto Credit Express.2

Military Financing

If you’re an active member of the military, reservist, veteran, or family member of any of those, you could receive special military financing and discounts. You’ll see lower APRs and down payments, better loan terms, and more approvals.3 While you’re at it, check out the best auto insurance for those connected to the military.

3. Best New Car Loans From a Bank - Bank of America
Bank of America Logo

What We Like Most:

  • Minimum APR is 3.79 percent
  • Loan amounts start around $7,500 to $8,000, depending on state
  • Discounts of up to 0.50 percent for Platinum Honors members

Instead of shopping for an auto loan from companies you’re unfamiliar with, you can always have your current bank finance your vehicle. If you’re already a Bank of America rewards member, consider it a possible auto loan provider.

ProsWho It's Best For
  • pro
    Bank of America members, who will get discounts of 0.25 to 0.5 percent on interest rates
  • pro
    Anyone in the U.S., including Washington, D.C.
  • pro
    Someone who owns a vehicle less than 10 years old with less than 125,000 miles on it
  • pro
    Someone who wants to apply for an auto loan online and get approved within a minute
ConsWho It's Not Best For
  • con
    Someone with a car that’s over 10 years old or has more than 125,000 miles on it
  • con
    Someone with a vehicle valued at less than $6,000

Discounts for Members

If you’re already a member of Bank of America’s Preferred Rewards program, you can enjoy discounts on your auto loan anywhere from 0.25 to 0.5 percent, depending on your membership level.

Factor Gold Platinum Platinum honors
Combined balance range in Bank of America deposit and/or Merrill investment accounts $20,000-$49,999 $50,000-$99,999 $100,000-$1,000,000
Car loan interest rate discount 0.25% 0.35% 0.5%

Membership is available in all parts of the U.S., including Washington, D.C. You’ll benefit from Bank of America’s 120 years in business and the same customer service you already enjoy as a member.


Bank of America has an A+ rating with the Better Business Bureau and has been accredited for 76 years.4

Easy and Fast Approval Process

Applying for an auto loan from Bank of America only takes a minute. Simply provide the following information online:

  • Loan type
  • Car year
  • Make
  • Model
  • Mileage
  • Trim
  • Vehicle identification number (VIN)
  • Loan amount (between $7,500 — or $8,000 in Minnesota — and $9,999,999.99)
  • Loan term (48, 60, or 72 months)
  • Name
  • Address
  • Phone number
  • Email address
  • U.S. citizenship status
  • Social Security number
  • Date of birth
  • Employment status
  • Employer name
  • Occupation
  • Time employed
  • Yearly income
  • Housing status
  • Monthly housing payment

Once you get approved, the offered amount will be locked in for 30 days, so you have time to think about it without losing the best interest rates. You can finish the process entirely online.


Our dealer vs. bank financing calculator helps you decide whether you’ll save more by taking a low interest rate from a dealer, or a cash rebate and financing with a bank.

Trustworthy Institution

One of the advantages of going with a traditional bank is its reliability. Bank of America has been in business for 120 years and is BBB-accredited since 1949, with an A+ rating.

BoA has a high number of customer complaints due to its vast customer base, but it has closed 7,485 of them in the past three years, and 2,605 of those in the past 12 months. While customer complaints are inevitable, we appreciate how BoA resolves them.

4. Best New Car Loans From a Credit Union - PenFed Credit Union
PenFed Credit Union Logo

What We Like Most:

  • Minimum APR is 3.44 percent
  • Loan terms available anywhere from 36 to 72 months
  • Average monthly savings is $334.17

Some people use credit unions rather than traditional banks as their financial institutions. If you prefer a credit union to a bank or traditional lender, consider Pentagon Federal Credit Union, or PenFed. Anyone is eligible to join PenFed, and with an A+ rating from the BBB and a 4.3-star rating out of five on Trustpilot,5 the credit union is a trustworthy auto loan provider.

ProsWho It's Best For
  • pro
    Someone who wants an average APR of 4.7 percent
  • pro
    New car/truck owners
  • pro
    Someone who wants to purchase gap insurance and extended vehicle coverage along with their auto loan
  • pro
    Someone who wants to pay off their loan in 36 to 72 months
ConsWho It's Not Best For
  • con
    Nonmembers of the PenFed Credit Union
  • con
    Someone who wants to pay off their loan in less than 36 months

Monthly Savings

On average, people who refinance their auto loans with PenFed save $191 per month.6 With loan terms anywhere from 36 to 72 months, the union offers APRs as low as  4.74 percent. Rates will be lower if you select a shorter term.


PenFed offers other financial protections aside from auto loans.

  • Gap insurance: Did you know vehicles lose 10 percent of their value as soon as you drive them off the lot, plus another 15 to 25 percent each year on average?7 If your car is totaled and you lack gap insurance (“gap” standing for “guaranteed asset protection” in this case), you’d be responsible for the difference between the car’s actual cash value and the remainder of the loan. That’s why PenFed offers gap insurance, for a flat fee of $449. Included with gap insurance, PenFed members also receive an additional $1,000 toward a replacement vehicle financed with PennFed. The maximum loan amount is $100,000 with a maximum 84-month term and a maximum gap loss of $50,000.
  • Deductible reimbursement: Along with gap insurance, you’ll get a deductible reimbursement of up to $500, so long as your vehicle is owned, titled, registered, and insured. It even covers unlimited losses within a year, so you can get reimbursed for $500 of your comprehensive or collision deductible.
  • Extended vehicle coverage: Your manufacturer’s warranty may not offer enough protection or a long enough term. To supplement it, you can buy an extended warranty from PenFed.
Feature Easy Street Protection for Newer Cars Easy Street Protection Main Street Protection
Eligible vehicle model years 2 or newer 8 or newer 8 or newer
Eligible miles on odometer 0-15,000 75,000 or under 75,001-125,000
Length of coverage 6 years or 100,000 miles, whichever comes first 5 years or 100,000 miles, whichever comes first 3 years or 36,000 miles, whichever comes first
24-hour roadside assistance Yes Yes Yes
Reimbursement for repair costs after manufacturer’s warranty expires Yes Yes Yes
Towing Yes Yes Yes
Rental car reimbursement Yes Yes Yes
Pricing for standard vehicles $1,245 $1,745 $1,745
Pricing for premium and hybrid vehicles $1,245 $2,995 $2,995
  • Debt protection: What happens if you experience a death, disability, firing, or layoff and can’t pay your auto loan? PenFed offers debt protection for these cases. If you were laid off from your job, for example, debt protection would cancel up to six loan payments, up to $1,000 per month and $15,000 total.
Feature Death Disability Involuntary unemployment
Plan 1 coverage (Premium) Yes Yes Yes
Plan 2 coverage (Advanced) Yes Yes No
Plan 3 coverage (Basic) Yes No No
Maximum total loan balance canceled $70,000 $24,000 $15,000
Maximum monthly loan balance canceled N/A $1,000 $1,000
Maximum number of payments canceled per occurrence N/A 6 12

Online Application

Getting an auto loan from PenFed is easy, and you can do it without leaving your seat. On its website, choose between a new or used vehicle loan. Then, complete a quick quiz about where you purchased your vehicle, the total amount you’d like to borrow, the term length you’d like, and some information about yourself, including your name, email, mobile phone number, address, birthday, Social Security number, employment status, income, and more.

You can go through this process without having to get a PenFed membership first, so it’s quick and seamless.


To compare the best new car loan providers, we looked at information from the providers/aggregators directly, as well as third-party ratings from the Better Business Bureau and Trustpilot, which aggregates customer reviews from across the internet. The company information we analyzed included the following:

  • Age of company
  • Loan term lengths
  • Minimum APR for new and used cars
  • Loan amounts
  • Maximum LTV ratios
  • Discounts
  • Average total interest savings
  • Average monthly savings
  • Penalties for late payments or prepayments
  • Required down payment or lack thereof
  • Average monthly savings
  • Application fee, if any
  • Add-ons like gap insurance and extended vehicle coverage
  • Availability in terms of states, age of the applicant, types of vehicles, residency, bankruptcy, income, credit score, vehicle mileage or age, and so on
  • How long the financial process takes
  • Customer service hours and experience
  • Other services the provider offers, like personal loans and lease buyouts

We analyzed private-party auto financing, auto lender aggregation services, and companies that offer a car-buying service. Exact loan offers will depend on your vehicle, credit report, and other factors. We prefer lenders with low APRs, flexible terms, and a wide range of loan amounts.

Frequently Asked Questions

What is a good rate for a new car loan right now?

With Interest rates as high as they are since the pandemic, a good rate on a new car loan is around 5 percent for a 36 month term. Below we’ll look at some good APRs based on various length terms.

Term 36 months 37-60 months 61-72 months 73-84 months 85-96 months
New vehicle APR 5.24% 5.39% 5.64% 6.84% 7.24%

Is it better to get an auto loan from your bank or the dealership?

In general, it’s better to get an auto loan from a bank than a dealership. Shop around for the lowest APRs from different auto loan providers. While getting an auto loan from a dealership is more convenient, finance charges can be high, and advertised low interest rates may only apply to those with good credit scores.

Is it smart to pay off a car loan early?

Whether or not it’s smart to pay off a car loan early depends on your loan provider. Some lenders will charge you fees for prepayment. However, if your lender doesn’t have a prepayment penalty, it is smart to pay off a car loan early to avoid paying more interest. Learn more about what to know about accelerated car loans.

What car interest rate can I get with a 750 credit score?

With a 750 credit score, you can get a car interest rate of around 5 percent for a new vehicle, according to Experian data.


  1. State of the Automotive Finance Market Q4 2023. Experian. (2024, Feb).

  2. Business Profile: Auto Credit Express. Better Business Bureau. (2024).

  3. Military Auto Loans. Auto Credit Express. (2024).

  4. Business Profile: Bank of America. Better Business Bureau. (2024).

  5. PenFed Credit Union. Trustpilot. (2024).

  6. Auto Refinance Loan Benefits. PenFed Credit Union. (2024).

  7. Car Depreciation: How Much Value Does A Car Lose Per Year? Carfax. (2021, Feb 3).