Auto Loan Rates

What APR can you expect for your auto loan?

No credit or bad credit. APR between 8% to 13.21%.  Get a free quote. Click Here. 

Fair credit. APR Between 6% to 7%.  Get a free quote. Click Here. 

Good credit. APR between 4% to 5%.  Get a free quote. Click Here. 

Excellent credit. APR between 2.88% to 3.69%.  Get a free quote. Click Here. 

 

Compare Auto Loans APR

BankAPRAmount $Monthly Payment $Term (months)Credit Score
CapitalOne8.00%20,000406.0060Bad credit
WellsFargo13,21%20,000458.0060Bad credit
USBank2.88%10,000293.5136Excellent credit
BankofAmerica3.29%20,000362.0060Excellent credit
Chase3.69%20,000365.5460Excellent credit
CapitalOne4.32%20,000371.0060Excellent credit
WellsFargo5.44%20,000382.0060Excellent credit

 

How can you get the best auto loan?

  1. Review Your Credit Report
  2. Understand auto loan rates and loan terms
  3. Negotiate the Purchase Price 
  4. Avoid Unnecessary Expenses for upgrades.

If you follow these tips you'll get a better deal on your auto loan.

Review Your Credit Report

Before you start , access a free copy of your credit report and review it for accuracy. This document has a huge impact on your loan APR. Even if everything is accurate, you need to know exactly what information the lender is looking at when reviewing your financing application.

Understanding auto loan rates

APR includes the interest rate to be charged on the principal loan amount (the sum borrowed to buy a vehicle) and any transaction fees that are rolled into the loan. The APR is also affected by the credit history, current interest rates, competition, market conditions and special offers.

Understanding Auto Loan terms

Some lenders offer loans for up to 72 months. However, it’s best to pay off a car loan as fast as you can since cars depreciate rapidly. Owing more on the loan than the car is worth, is a risky financial situation.

Also, the best interest rates are available for shorter loan terms. We recommend 60 months for new cars and 36 months for used cars.

Negotiate the Car Purchase Price

This is where the preapproval is important. With a preapproved loan you can sidestep the car salesman’s favorite tactic: the monthly payment game.

When you’re preapproved, you become a “cash buyer.” That means you can concentrate on negotiating only the sale price of the car.

Negotiate the best deal for you, and remember to leave enough money to cover taxes and fees.

Some simple negotiation tactics.

First, try shopping at the end of the month when the sales team is trying to hit target numbers.

Shop around several dealerships to compare prices and use competitors as leverage for a better deal.

Avoid Unnecessary Expenses for upgrades

Whether it’s a custom paint color, seat warmers, or even a warranty plan, it’s easy to spend a few thousand dollars more. That can quickly derail your monthly car payment.

Avoid this scenario altogether by adopting a strict no-upgrade policy before you enter the dealership. Paired with a maximum purchase price in mind, you’ll safely meet your financial targets.

 Shop online for car financing

The FTC Advises to shop around when you’re ready to apply for financing,

Direct-to-consumer online auto lenders like make applying for car loans simple.

You fill a simple form and you can do so from home, work or your mobile device, and you’ll receive an instant decision. Qualified applicants can get preapproved, empowering you to shop with the confidence of a cash buyer. When you go to the  dealership, you already know the terms of your loan, and you can negotiate a better deal.

Use Your Car Loan to Repair Your Credit

When you do finalize the terms and conditions of your auto loan, commit to being a responsible borrower. Repaying an installment loan is a great way to repair your credit, and it’s simple to do. All it takes is an on-time payment each and every month. Those monthly payments are generally captured on your credit report, so you’ll start to see a noticeable difference over time.

Of course, late payments will hurt your credit score, in addition to accruing you expensive fees. But as long as you stay on top of your payments you can really benefit from an improved score. In fact, you may even decide to refinance your car loan for a better interest rate.

Capital One Auto Loan

Capital One is one of the large banks that offers auto loans.

The loan amount must  be within $4,000 and $40,000 and the car can be no older than a 2007 model. The mileage must be under 120,000, you can only use the car for personal use, and you must utilize a participating dealership for your purchase.