The Best New Car Loans of 2024

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Add-ons

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.

• 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.

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.