Car Loans: Compare Auto Loan Rates & Finance Your Next Vehicle
Compare auto loan rates and find the best financing for your next vehicle
Estimate Monthly Payments with Our Auto Loan Calculator
Compare Car Loan Offers from Top Auto Lenders
LightStream
Loan Amount
$5,000 - $100,000
APR Range
5.99% - 12.99%
Term Length
24 - 84 months
Min. Credit Score
660+
Best for: Excellent credit borrowers
Capital One
Loan Amount
$4,000 - $85,000
APR Range
6.49% - 14.99%
Term Length
36 - 72 months
Min. Credit Score
580+
Best for: Car shopping assistance
Bank of America
Loan Amount
$7,500 - $100,000
APR Range
6.29% - 15.99%
Term Length
48 - 72 months
Min. Credit Score
660+
Best for: Bank of America customers
PenFed Credit Union
Loan Amount
$500 - $100,000
APR Range
5.49% - 13.99%
Term Length
36 - 84 months
Min. Credit Score
610+
Best for: Credit union members
Carvana
Loan Amount
$1,000 - $85,000
APR Range
7.90% - 27.90%
Term Length
36 - 72 months
Min. Credit Score
580+
Best for: All-in-one car buying
Who Qualifies for a Car Loan?
Typical Eligibility Requirements for Car Loans
| Requirement | Description | Minimum | Recommended |
|---|---|---|---|
| Driver's License | A valid driver's license is required to purchase and register a vehicle. | Valid driver's license | Same as minimum |
| Income | Steady income demonstrates your ability to make monthly payments. | Verifiable income | $2,000+ monthly income |
| Credit Score | Your credit score affects loan approval and interest rate. | No minimum (but affects rates) | 600+ for competitive rates |
| Vehicle Information | Details about the vehicle you plan to purchase. | Year, make, model, and VIN (for used cars) | Complete vehicle history report |
| Insurance | Proof of insurance is required before driving off the lot. | Minimum coverage required by state | Comprehensive coverage |
* Requirements vary by lender. Meeting minimum requirements does not guarantee approval.
Is a Car Loan Right for You? Pros and Cons
Pros of Car Loans
- Fast approval and funding process
- Can help build or improve credit score
- Competitive APRs for borrowers with good credit
- Fixed monthly payments for budgeting
- Ownership of the vehicle after loan payoff
Cons of Car Loans
- Vehicle depreciation (car loses value over time)
- May require down payment (typically 10-20%)
- Interest rates vary significantly with credit score
- Additional costs (insurance, taxes, registration)
- Risk of repossession if payments aren't made
Step-by-Step: How to Apply for Auto Financing
How to Apply for a Car Loan
- 1
Choose a Vehicle and Loan Amount
Determine your budget, select a vehicle that meets your needs, and decide how much you need to borrow after your down payment.
- 2
Compare Car Loan Offers
Shop around for the best rates and terms from banks, credit unions, online lenders, and dealerships. Pre-qualification can help you compare offers without affecting your credit.
- 3
Submit Your Application
Complete the application with your chosen lender, providing personal information, income details, and vehicle information.
- 4
Provide Necessary Documents
Submit required documentation, which may include proof of identity, income verification, proof of residence, and vehicle information.
- 5
Finalize the Loan and Get Your Car
Review and sign the loan agreement, provide proof of insurance, and complete the purchase. The lender will pay the dealer directly, and you'll begin making monthly payments to the lender.