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Last updated: May 11, 2026The Best Used Car Loans of 2026
Ally, Bank of America, and LendingTree are amongst our top picks for competitive used car loans.
Best for Online Loans
Editor's Rating:
3.5/5
3.5/5
Starting APR: 5.94%
Benefits:
- Digital-native bank with robust online tools
- Low minimum credit score requirement to apply
- Competitive rates for people with high credit
Best Bank for Used Car Loans
Editor's Rating:4.5/5
4.5/5
Starting APR: 5.54%
Benefits:
- Competitive rates for good credit
- Preferred Rewards membership discount
- Quick online loan approval process
Best Loan Marketplace
Editor's Rating:4.3/5
4.3/5
Starting APR: 4.79%
Benefits:
- Compare loans from 300 lenders at once
- Competitive starting APRs
- Quick and easy application process
Key Takeaways: Best Used Car Loans of 2026
Ally, Bank of America, and LendingTree are top picks for competitive used car loans.
- The average used car loan rate was 11.4% in Q3 2025; borrowers with good credit can aim for under 7%.
- Ally is best for online tools and low credit requirements (520+ score); Bank of America suits high-credit borrowers and existing customers.
- LendingTree lets you compare up to 300 lenders at once with a single application, with starting APRs from 4.79%.
- Auto Credit Express is the top pick for low-credit borrowers, specializing in subprime loans with no origination fee.
Buying a used car has many advantages, including lower upfront costs and less vehicle depreciation. While used car loans typically have higher interest rates than new car loans, many lenders offer favorable terms. See our top picks below, including options for vehicle refinancing and applicants with low credit scores.
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 for Used Cars
- Best for Online Loans: Ally
- Best Bank for Used Car Loans: Bank of America
- Best Loan Marketplace: LendingTree
- Best for Used Car Shopping: CarGurus
- Best for Low Credit: Auto Credit Express
Compare the Best Auto Loans for Used Cars By Category
| Auto loan provider | Ally | Bank of America | LendingTree | CarGurus | Auto Credit Express |
|---|---|---|---|---|---|
| Type of provider | Loan provider (direct lender) | Loan provider (direct lender) | Loan marketplace for comparing lenders | Loan marketplace with all-in-one car buying and financing | Loan marketplace for low credit applicants |
| Loan term (time to repay) | 12-84 months | 48-72 months | 24-84 months | 36-72 months | 24-72 months |
| Used car minimum APR (annual percentage rate) | 5.94% | 5.54% | 4.79% | 7.64%, with 0% for limited-time promos | Not available |
| Minimum loan amount | $5,000 | Minimum $7,500, or $8,000 in Minnesota | $4,000 | $5,000 | $5,000 |
| BBB rating (A-F) | Not accredited | Not accredited | A+ | A+ | A+ |
| Trustpilot rating (out of 5) | 1.2 | 1.3 | 4.5 | 3.6 | 4.6 |
FYI:
Larger banks like Ally and Bank of America often have low ratings on platforms like Trustpilot, due to their size. Bigger companies get more reviews, and this skews their ratings. This doesn’t necessarily reflect the caliber of their loan offerings, though we still recommend doing your own research to verify which lender is right for you.
Breaking Down the Best Auto Loans for Used Cars
1. Ally - Best for Online Loans
3.5
Editor's Rating:
- Digital-native bank with robust online tools
- Low minimum credit score requirement to apply
- Competitive rates for people with high credit
Not available in every state- Vehicle restrictions
- Rates not transparent
Ally is a digital-native bank that’s our pick for its low credit score requirement of 520+ and a minimum $2,000 monthly gross income. It also offers competitive rates for high credit applicants. Applying is easy, featuring a preapproval process with a soft credit pull. Ally has robust online loan management tools, such as making payments and viewing statements on the Ally app.
We also like Ally for its specialty vehicle financing option, which helps cover modifications like wheelchair lifts and right-hand drive capability. Be sure to check you meet Ally’s requirements before proceeding with a loan: for instance, used vehicles must be under 12 years old and have under 120,000 miles to qualify for financing.
Who It’s Best For
People who like a robust online experience, consumers with low credit seeking favorable application requirements, high credit applicants who may qualify for competitive rates
2. Bank of America - Best Bank for Used Car Loans
4.5
Editor's Rating:
- Competitive rates for good credit
- Preferred Rewards membership discount
- Quick online loan approval process
- Limited underwriting control
- Dependent on partners
If you prefer working with a large bank, our pick is Bank of America (BoA). We recommend it for high credit applicants who can qualify for its low starting rates, as well as existing BoA clients. As a member of the BofA Rewards program, you may receive a discount of up to 0.50% on a used auto loan, though you do have to maintain a qualifying balance in your BoA bank account.
Applying for a loan is quick: input your details and see if you’re approved in a few clicks. You’ll have 30 days to accept it. Be aware BoA has strict guidelines, e.g. you must purchase from an approved franchise dealer, manufacturer, or retailer, and you can’t finance a vehicle worth under $6,000. Still, if you can qualify for BoA’s competitive rates, the tradeoff may be worthwhile.
Who It’s Best For
Existing Bank of America clients, Bank of America BofA Rewards members, consumers who prefer working with an established bank, applicants with high credit
3. LendingTree - Best Loan Marketplace
4.3
Editor's Rating:
- Compare loans from 300 lenders at once
- Competitive starting APRs
- Quick and easy application process
- Partner-dependent pricing
- Limited underwriting control
LendingTree is an online loan marketplace featuring over 300 lenders. We recommend it for efficient and easy comparison: you complete a single loan application, then get matched to up to five lenders at once. This saves you from completing applications for multiple lenders and lets you pinpoint the offers right for you, such as shorter terms for faster payment.
To finance a used car, LendingTree offers loan amounts of $5,000. Coupled with its flexible loan terms and low starting APRs, this puts LendingTree on our list for top used car loans. Be aware that your loan offers will ultimately depend on LendingTree’s partners, your credit profile, and your desired loan terms and rates.
Who It’s Best For
People who want to quickly compare multiple lenders at once, consumers who want to refinance their current loans, people prioritizing low starting APRs
4. CarGurus - Best for Used Car Shopping
- Platform that integrates car buying and financing
- Easily compare vehicles and loan terms
- Wide network of dealers and lenders
CarGurus is a trusted online car marketplace that offers financing options. You select your desired vehicle from a wide network of partner dealers, then prequalify for loan offers on that car. With robust filtering, transparent prices, vehicle history details, and price drop alerts, CarGurus offers a seamless experience for buying and financing used cars in one go.
When you prequalify for loans, CarGurus will perform a soft credit pull that has no effect on your credit. Once prequalified, you can browse other cars and view your personalized payment estimates for each. When you’ve selected a car, you’ll bring your pre-qualified offer to the dealership and finish your loan application as part of the purchase process.
Who It’s Best For
People in the market for a used car, consumers who prioritize a robust car shopping platform, people who plan on purchasing a vehicle from a local dealership
FYI:
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.
5. Auto Credit Express - Best for Low Credit
3
Editor's Rating:
- Loan applications tailored for low credit
- Easy pre-qualification process
- Wide network of lenders and dealers
- Rates vary widely
- Dealer-driven experience
If you’ve got low credit, we recommend Auto Credit Express for its easy approval process, specialty in subprime loans, and the fact many partner lenders and dealers allow co-signers or co-borrowers to boost your loan approval odds. Plus, Auto Credit Express doesn’t charge an origination fee, though be aware its partner lenders may.
An important note: Auto Credit Express’s auto loan rates, though higher than those offered to customers with good credit, are competitive for the types of subprime loans offered to people with low credit. Loan rates and terms will vary by lender and dealer, so we recommend carefully reading the terms of your offer before proceeding.
Who It’s Best For
People who need a cosigner for their loans, people who want to refinance their current loans, people who don’t want to pay application fees, someone who wants rental reimbursement
CLOSING THE GAP:
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.
Methodology
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
According to Experian, the average car loan rate for a used car was 11.4 percent in the third quarter of 2025. With good credit, a good rate for your used car will be under 7 percent. That said, the actual rate you receive will depend heavily on your credit score and credit history.
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.
Financing a used car is a good option if you want to avoid a large upfront cost. The downside is that interest rates for used car loans are typically higher than for new car loans.
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.
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