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The Best Used Car Loans

Pay off your used car loan quickly with the best rates and loan terms

Best Overall
Oportun Logo 2023

Oportun services personal loans in 12 states. While its coverage area is limited, Oportun is a great option if you have bad credit or a limited credit history.

Best Interest Rates for Used Car Loans
myAutoloan Logo 2023

MyAutoloan is an online loan aggregator with a fast and easy application process. Its competitive interest rates drove it up our list of best companies for used car loans.

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Buying a used car has many advantages, including lower upfront costs and less vehicle depreciation. However, financing a used car comes with different considerations than getting a new car loan does. While used car loans typically have higher interest rates, many lenders offer favorable terms. See our top picks for the best used car loans below, including options for vehicle refinancing and loan applications with no credit score required.

The Best Auto Lenders for Used Cars

  1. 1.

    Best Used Car Loan Overall: Oportun

  2. 2.

    Best Interest Rates for Used Car Loans: myAutoloan

  3. 3.

    Best Bank for Used Car Loans: Bank of America

  4. 4.

    Best Online Used Car Loan: Auto Approve

  5. 5.

    Best Used Car Loan for Bad Credit: Ally

Comparison of the Best Auto Loans for Used Cars

Auto loan provider Oportun myAutoloan Bank of America Auto Approve Ally
Best for Overall Lowest rates Bank Online lenders Bad credit
Age of the company (in years) 16 19 240 6 39
Loan provider or aggregator Loan provider Aggregator Loan provider Aggregator Loan provider
Life of the loan in months 12-48 24-72 48, 60 or 72 12-84 36-75
Minimum APR (annual percentage rate) 35.99% cap 2.94% 5.69% 2.25% Not disclosed
Minimum and maximum loan amount $300-$10,000 No set amount, but the minimum loan amount for used cars is $8,000 Minimum $7,500, or $8,000 in Minnesota $5,000-$85,000 $5,000-$100,000
BBB accreditation? Yes Yes Yes Yes No
BBB rating (A-F) A+ A+ A+ A+ A-
Trustpilot rating (out of 5) 4.9 4.2 1.3 4.7 1.2

Detailed List of the Best Auto Loans for Used Cars

1. Best Used Car Loan Overall - Oportun
Oportun Logo 2023

What We Like Most:

  • Available for a variety of vehicle makes, from Acura to Volvo
  • Covers vehicles of up to 25 years old with a maximum of 250,000 miles
  • No minimum credit score

Oportun provides personal loans, credit cards, and a savings account app called Digit. You can qualify online for a loan, even with bad credit or a limited credit history. The U.S. Department of the Treasury certified Oportun as a Community Development Financial Institution (CDFI).1

Oportun services personal loans in only 12 states: Arizona, California, Florida, Idaho, Illinois, Missouri, New Jersey, New Mexico, Nevada, Texas, Utah, and Wisconsin. Its positive reputation from the Better Business Bureau (BBB) and easy prequalification process place Oportun at the top of our list for used car loans.

ProsWho It's Best For
  • pro
    People with older cars (maximum 25 years)
  • pro
    Vehicles with high mileage (maximum 250,000 miles)
  • pro
    People without FICO scores or established credit histories
ConsWho It's Not Best For
  • con
    People who are looking for a loan amount over $10,000
  • con
    Electric- or hybrid-vehicle drivers
  • con
    People who live outside the 12 states where Oportun offers personal loans

Alternatives to Credit History

Credit history is just one of many factors Oportun uses to assess loan eligibility. In addition to or in place of your credit, Oportun considers these factors:

  • Annual income
  • Monthly debt
  • Ability to pay
  • Employment history

Oportun can even approve you if you went through bankruptcy in the past. To apply for a personal loan, you need a government-issued ID, proof of address, proof of income, employer information, and a list of your recurring monthly debt payments.

Secured Personal Loans

Oportun provides the option for a secured personal loan against your car title for car owners in Arizona, California, Florida, New Jersey, and Texas. Securing your loan with your car title gets you more money — $2,525 to $18,500 — compared with an unsecured personal loan. Secured loans also typically offer lower APRs than personal loans do. Your car title will be collateral against the loan, but your car will stay with you and you will continue driving as usual while you make loan payments.

Community Focus

Oportun is a federally certified CDFI, which means its primary mission is to promote community development. You can take advantage of free financial coaching, job assistance, and financial support from Oportun and its partnerships with other organizations.

In 2021, Oportun extended a $2 million low-interest loan to the Opportunity Finance Network to be used to make loans to other CDFIs and promote responsible lending to low- and moderate-income communities.2


Your monthly payment depends on three factors: your loan amount, loan term, and interest rate. The more money you borrow, the larger your payments will be. Longer loan terms result in lower payments because you’ll pay your loan over a longer time.

2. Best Interest Rates for Used Car Loans - myAutoloan
myAutoloan Logo 2023

What We Like Most:

  • APRs as low as 1.90 percent
  • Not all lenders require down payments
  • No minimum credit score

MyAutoloan is a direct-to-consumer, internet-based financing marketplace. Its one-page application is fast, easy, and secure. With multiple offers, you can choose the terms that are right for you — for example, shorter loan terms to pay off your loan faster.

MyAutoloan offers loan amounts of $8,000 and above to finance or refinance a used car. The company’s reputation, ease of use, and interest rates put it near the top of our list for used car owners looking for loans.

ProsWho It's Best For
  • pro
    People who want to refinance their current loans
  • pro
    People who are looking for loans of $8,000 or more
  • pro
    People who are looking for shorter loan terms
ConsWho It's Not Best For
  • con
    People with gross annual incomes under $24,000
  • con
    Drivers in Alaska and Hawaii
  • con
    Drivers of vehicles with more than 100,000 miles or vehicles older than eight years

Multiple Lender Matches

After completing a two-minute application, you will receive up to four offers. Compare the loan terms, APRs, and fees to choose the one that’s right for you. Having competing offers is also a great bargaining tool to get the rate you want. Most lenders provide online certification or check within 24 hours to buy the used car you want or refinance your current loan.

As of Feb. 4, 2023, the lowest used car auto rate available from myAutoloan was 2.94 percent. Note that used car loans typically have higher interest rates than new car loans because used cars can be riskier to finance due to the car service and accident histories.

Stellar Reputation

The BBB awarded myAutoloan an A+ rating for its accreditation and business practices.3 In addition, myAutoloan’s Trustpilot review score is 4.1 out of 5 stars. Some negative reviews noted that myAutoloan shares your information with lenders that may contact you personally, which is not ideal if you care about data privacy. On the other hand, many 5-star reviews note the ease of the application process and the benefits of multiple offers.

3. Best Bank for Used Car Loans - 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

If you prefer working with a larger, centralized banking institution, we recommend financing your loan through Bank of America (BoA). Members of Bank of America’s Preferred Rewards program receive the most out of BoA loans because they qualify for interest rate discounts. Unfortunately, if your vehicle’s value is less than $6,000, BoA will not consider you for a used car loan.

ProsWho It's Best For
  • pro
    Bank of America Preferred Rewards members
  • pro
    People who want to refinance their current loans
  • pro
    People who want to work with an established financial institution
ConsWho It's Not Best For
  • con
    Drivers of vehicles valued at less than $6,000
  • con
    Drivers of vehicles with 125,000 miles or more
  • con
    People who want a 24/7 call center

One-Minute Approval Process

Bank of America’s easy and fast process requires you to provide personal info and your desired loan terms online for the loan approval in 60 seconds. After approval, you’ll have 30 days to think about the offered amount without losing the interest rate locked in at the time of your offer.

Bank of America Preferred Rewards

Bank of America’s Preferred Rewards program applies to bank clients and investing clients with Merrill. Your tier benefits depend on your three-month combined average daily banking or investing balance.

Tier Gold Platinum Platinum Honors Diamond
3-month average balance $20,000-$50,000 $50,000-$100,000 $100,000-$1,000,000 $1,000,000-$10,000,000
Interest rate loan discount 0.25% 0.35% 0.5% 0.5%

Other benefits for Gold tier members and up include a 25 percent rewards bonus on your Bank of America credit cards, no banking fees, and interest rate discounts on home equity and on auto loans.

Private-Party Car Loans

Bank of America offers refinancing loans, lease buyouts, and private-party loans. Private-party loans apply when you purchase a vehicle from another individual. You can apply for a private-party loan online or by visiting a Bank of America financial center. Private-party loans have the following requirements:

  • The seller(s) must be the same as the registered owner(s) listed on the vehicle title.
  • You must purchase the vehicle directly from the seller/owner, not on consignment.
4. Best Online Used Car Loan - Auto Approve
Auto Approve Logo

What We Like Most:

  • Loan amounts range from $5,000 to $85,000
  • Refinancing available
  • A+ rating from the Better Business Bureau

Auto Approve provides resources and assistance, specifically with refinancing options such as auto lease purchasing. The company has an A+ rating from the BBB and 4.7 out of 5 stars on Trustpilot, the second-highest customer rating on our list. If you want personalized service with an online loan provider, Auto Approve is a solid option.

ProsWho It's Best For
  • pro
    People who need a cosigner for their loans
  • pro
    People who want to refinance their current loans
  • pro
    People who don’t want to pay application fees
ConsWho It's Not Best For
  • con
    People who don’t have existing auto loans
  • con
    People who want loans under $5,000

Refinancing Options

Auto Approve offers two ways to refinance a used vehicle loan:

  • Traditional refinancing: Take out a new loan to cover your existing loan, pay it off, and pay a new loan with a lower APR. If your credit has improved, interest rates have decreased, or your financial situation has changed, it may be time to refinance.
  • Auto lease purchase: If you love your leased vehicle, Auto Approve provides an option to help you buy out the lease in full.

Vehicle Protection Plan

You can add an extended warranty to your auto loan with Auto Approve to ensure you get the most out of your used vehicle. This offering includes the following benefits to protect your car against wear and tear:

  • Direct payment to any Automotive Service Excellence-certified mechanic in the U.S.
  • 24/7 roadside assistance
  • Rental car reimbursement of up to $50 per day
  • Courtesy towing
  • Protection against surprise breakdowns and the cost of parts

Auto Approve builds its vehicle protection plan into your loan, so you pay a single monthly payment.

Easy Approval Process

You need minimal information to get loan approval at Auto Approve. To get a lower rate, you must provide simple documentation, like a driver’s license and proof of insurance. Your application should be approved in seconds, after which a loan consultant will work with you to submit your application to one of the company’s preferred lending partners.


If you lease your vehicle, your lender will likely require you to purchase gap insurance. This provides protection if you owe more than the car’s actual cash value on your car loan if you total your vehicle.

5. Best Used Car Loan for Bad Credit - Ally
Ally Logo

What We Like Most:

  • More than 100 years in business
  • Average monthly savings is $119
  • No down payment required

Formerly known as Ally Clearlane, Ally auto loans are the best options for people with bad credit or limited credit histories. Ally’s easy online preapproval process doesn’t require a hard credit pull (though the company will do one with the final loan application). Once Ally prequalifies you, you’ll choose from lease terms between 36 and 75 months. Ally offers refinancing, lease buyouts, and personal and business vehicle financing options.

ProsWho It's Best For
  • pro
    People with no credit, low credit, or improving credit
  • pro
    People who want to refinance their current loans
  • pro
    People who want a lease buyout option
  • pro
    People who want robust online customer service
ConsWho It's Not Best For
  • con
    Residents of Nevada, Vermont, and Washington, D.C.
  • con
    People who make less than $2,000 a month
  • con
    Cars with unrepaired collision or comprehensive damage

Ally Customer Service

Ally is a digital-native banking institution, so its online tools are robust. They include the following features:

  • Account management to check payment status, balance, and statements
  • Monthly or one-time payment scheduling from your checking or savings account
  • The Ally Auto mobile app for on-the-go access to your account
  • 24/7 online chat
  • Secure email

Ally Premier Protection

Ally offers a suite of products under its Premier Protection service warranty plan that extends protection to your vehicle through your loan term. Pricing is based on the type of vehicle and service contract. The chart below details which parts of your vehicle Ally protects through its extended warranty tiers.

What it covers Major Guard Major Guard EV Essential Guard Feature Guard
Accessory DC power and battery energy control modules No Yes No No
Airbags and crash sensors Yes No No Yes
Alternate transportation Yes Yes Yes Yes
Auxiliary radiator No Yes No No
Braking systems Yes Yes Yes No
Climate control Yes Yes Some No
Driver’s instrument display No No No Yes
Electric drive unit No Yes No No
Electrical Yes Yes Some No
Engine Yes Yes Yes No
Engine cooling Yes No Yes No
Front and backup camera systems Yes No No Yes
Front and rear suspension Yes Yes No No
Front, rear, and all-wheel drive Yes No Yes No
Fuel delivery Yes No Some No
GPS/navigation hardware Yes No No Yes
Heads-up display No No No Yes
Keyless entry No No No Yes
Lane departure warning Yes No No Yes
Liquid thermal battery management system No Yes No No
Power sun and moon roof Yes No No Yes
Propulsion battery pack No Yes No No
Radio and satellite radio Yes No No Yes
Roadside assistance Yes Yes Yes Yes
Safety Yes Yes No No
Steering Yes Yes Some No
Tech Yes Yes No No
Towing Yes Yes Yes Yes
Transmission Yes No Yes No
Trip interruption protection Yes Yes Yes Yes


To compare used car loan providers, we researched each provider/aggregator. We also looked at third-party reviews from the Better Business Bureau and Trustpilot, an online review aggregator. We compared and contrasted the following company information to determine the best used car loan provider in each of our categories:

  • Age of the company
  • Loan term lengths available
  • Minimum APR for new and used cars
  • Loan amounts offered
  • Maximum loan-to-value ratios
  • Discounts
  • Application fee, if any
  • Add-ons, like gap insurance and extended vehicle coverage
  • Availability in terms of states, age of applicants, vehicle make/model, bankruptcy, income, credit score, vehicle mileage or age, etc.
  • Length of the financial process
  • Customer service hours
  • Other services provided, like lease buyouts and refinancing

Please note that the loan offers you receive will depend on your vehicle, credit report, and other factors. We focused on lenders with low APRs, flexible terms, and a wide range of loan amounts.

Frequently Asked Questions

What is a good interest rate on a used car loan?

A good interest rate for a used car loan is anything under 6 percent. The average auto loan rate for used cars from providers is 3.62 percent, but the actual rate you receive will depend heavily on your credit score and credit history.

How long is a used car loan?

The length of your loan depends on your lender. The average length of a used car loan from the providers and aggregators on our list is around 48 months, but terms vary from 12 to 84 months. Typically, it’s best to have a shorter loan term on your used car to pay it back more quickly.

Is it a good idea to finance a used car?

You should finance a used car if you prefer a low down payment and upfront cost. The downside is that interest rates for used car loans are typically higher than for new car loans.

Is it easier to get approved for a new or used car loan?

Generally, it’s easier to finance a new car than a used car because it’s easier for lenders to determine the value of a new car. If you have bad credit, however, you’re more likely to get financed for a used vehicle than for a new one.


  1. Oportun celebrates first decade as a community development financial institution. Oportun. (2019, Dec 4).

  2. Oportun extends a $2 million low-interest loan to help other Community Development Financial Institutions (CDFIs) advance financial inclusion. Oportun. (2021, Sep 23).

  3. Business Profile: Better Business Bureau. (2023).