Updated March 10, 2026
Today's Best Auto Loan Rates
Current auto loan rates for new and used car financing.
New Car 36-Month
5.85%
New Car 48-Month
6.10%
New Car 60-Month
6.35%
New Car 72-Month
6.65%
Used Car 36-Month
7.15%
Used Car 48-Month
7.40%
Used Car 60-Month
7.65%
Rate Trends
New Car 36-Month
New Car 48-Month
New Car 60-Month
New Car 72-Month
Used Car 36-Month
Used Car 48-Month
Used Car 60-Month
Lender Comparison
Auto Loan Rates — Lender Comparison
| Lender | Rate ↑ | APR ⇅ | |
|---|---|---|---|
PenFed Credit UnionFeatured | 4.99% | 4.99% | Apply Now |
LightStreamFeatured | 5.29% | 5.29% | Apply Now |
Capital One AutoFeatured | 5.49% | 5.49% | Apply Now |
Bank of America | 5.99% | 5.99% | Apply Now |
Chase Auto | 6.10% | 6.10% | Apply Now |
Carvana | 6.50% | 6.50% | Apply Now |
Understanding Auto Loan Rates
What Affects Auto Loan Rates
Auto loan rates are influenced by the Federal Reserve's rate decisions, your credit score, the loan term, whether the car is new or used, and the loan amount. New car rates are lower than used car rates because new cars hold value better as collateral. Manufacturer incentives can also bring rates below market levels.
New vs Used Car Rates
New car loan rates are typically 1-2% lower than used car rates. This is because new cars have more predictable values and depreciation curves, making them lower-risk collateral for lenders. However, some manufacturer financing offers for new cars can bring rates even lower through subsidized promotions.
APR Explained for Auto Loans
For auto loans, the APR includes the interest rate plus any mandatory fees charged by the lender. Unlike mortgages, most auto loans have minimal additional fees, so the APR and interest rate are often very close. Dealer financing APRs may include a dealer markup above the lender's buy rate.
Loan Term Impact
Shorter auto loan terms (36-48 months) have lower interest rates and save thousands in total interest, but come with higher monthly payments. Longer terms (60-72 months) lower monthly payments but increase total cost. A 72-month loan can cost $3,000-$5,000 more in interest than a 48-month loan on the same vehicle.
Historical Context
Auto loan rates have moderated slightly from their 2024 peaks but remain elevated compared to pre-2022 levels. Credit unions continue to offer the most competitive rates. Longer loan terms (72+ months) carry higher rates and should be approached with caution as they increase total cost.
How to Get the Best Auto Loan Rate
Get pre-approved before visiting the dealership for more negotiating power.
Shorter loan terms (36-48 months) have lower rates and save money overall.
Credit unions typically offer auto loan rates 0.5-1% below banks.
A larger down payment reduces your loan amount and may qualify you for a better rate.
Avoid 72-84 month loans — you'll pay significantly more in interest.
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Calculate What These Rates Mean for You
Frequently Asked Questions
What is a good auto loan rate in 2026?
A good auto loan rate in March 2026 is around 5.00-5.85% for a new car (36-month term) with good to excellent credit. Used car rates are typically 1-2% higher. Credit union members often get the best rates, sometimes below 5%.
Should I finance through the dealer or get my own loan?
Getting pre-approved for an auto loan before visiting the dealership gives you more negotiating power and a benchmark rate. Dealer financing can sometimes beat outside rates through manufacturer incentives, but it is important to compare both options. Be wary of dealer rate markups.
How long should my auto loan term be?
Shorter loan terms (36-48 months) offer lower interest rates and less total interest paid. While 60-72 month loans have lower monthly payments, you pay significantly more in total interest and risk being underwater on the loan. Avoid terms longer than 60 months if possible.
Does my credit score affect my auto loan rate?
Yes, your credit score is the primary factor in determining your auto loan rate. Borrowers with excellent credit (750+) may qualify for rates around 4.99-5.49%, while those with fair credit (640-699) might see rates of 7-10% or higher.
Can I refinance my auto loan for a better rate?
Yes, auto loan refinancing is available and can save money if rates have dropped or your credit score has improved since you originally financed. There are generally no fees to refinance, and the process is simpler than mortgage refinancing.
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Rates shown are for informational purposes only and do not constitute a loan offer or financial advice. All rates are subject to change without notice. Last updated: March 10, 2026.