Who has the cheapest interest rates on car loans?

Asked by: Rebeka Hansen DVM  |  Last update: December 15, 2025
Score: 4.7/5 (13 votes)

  • LightStream - New car purchase loan. 4.5. NerdWallet rating. Est. APR. 7.74-15.69% Loan amount. $5,000-$100,000. ...
  • Consumers Credit Union - New car purchase loan. 5.0. NerdWallet rating. Est. APR. 5.74-17.54% Loan amount. ...
  • Alliant Credit Union – New car purchase loan. 4.0. NerdWallet rating. Est. APR. 5.24-23.25% Loan amount.

What is 6% interest on a $30,000 loan?

For example, the interest on a $30,000, 36-month loan at 6% is $2,856. The same loan ($30,000 at 6%) paid back over 72 months would cost $5,797 in interest. Even small changes in your rate can impact how much total interest amount you pay overall.

How much is a 30k car payment for 60 months?

How much would a $30,000 car cost per month? This all depends on the sales tax, the down payment, the interest rate and the length of the loan. But just as a ballpark estimate, assuming $3,000 down, an interest rate of 5.8% and a 60-month loan, the monthly payment would be about $520.

How much would a $3,000 loan cost per month?

The monthly payment on a $3,000 personal loan will depend on the loan term and the interest rate. For example, the monthly payment on a two-year $3,000 loan with an annual percentage rate (APR) of 12% would be $141.22. The monthly payment on a $3,000 loan with a six-year term and an APR of 12% would be $58.65.

Is it cheaper to go through a bank for a car loan?

Your Interest Rate From A Bank May Be Lower.

However, dealers commonly raise the interest rate of the car loan they present to you, and pocket the extra money. For example, if a bank preapproved you for $40,000 with a 3% interest rate over 60 months, you'd pay $43,125 with $3,125 in interest over the life of the loan.

How You Can Get the Lowest Interest Rate on Your Car Loan

23 related questions found

Is there a 0% car loan?

It may sound too good to be true, but getting a car loan with a 0% annual percentage rate (APR) is possible. However, not everyone will qualify for no-interest financing, you'll still be responsible for other costs and 0% APR loans may only be available on certain makes and models.

Who is best to finance a car with?

Best auto loans and financing of January 2025
  • Best from a big bank: Capital One Auto Finance.
  • Best from a credit union: PenFed Auto Loans.
  • Best for rate shopping: myAutoloan.
  • Best for a simple online experience: Carvana.
  • Best for used vehicles: CarMax Auto Finance.
  • Best for refinancing: Autopay.

How much is a $20,000 car payment per month?

Payments would be around $377 per month. According to the results, it will take you 60 months, an interest rate of 5% of $2,645, to fully pay your $20,000 car loan. However, the monthly cost of a $20,000 car loan will depend on your repayment period and the annual percentage rate (APR).

Why is a major downside of a 72-month loan?

Because of the high interest rates and risk of going upside down, most experts agree that a 72-month loan isn't an ideal choice. Experts recommend that borrowers take out a shorter loan. And for an optimal interest rate, a loan term fewer than 60 months is a better way to go.

What interest rate can I get with a 800 credit score for a car?

Good news for drivers with excellent credit: The average auto loan interest rate for consumers with an 800 credit score is 5.25% for a new car and 7.13% for a used car, according to Experian's 2024 State of the Automotive Finance Market report.

Is it better to finance a car through a bank or dealership?

Pros. May help you get the best terms: Dealers generally work with a limited set of lenders, who may not offer the ideal loan terms. In addition, dealers may add a markup to the annual percentage rate (APR) as compensation for arranging the loan. When you work directly with a bank, you won't have to worry about this.

Which finance company has lowest interest rate?

Top 10 Banks with the Lowest Interest Rates on Loans
  • State Bank of India (SBI) SBI, the largest public sector bank in India, offers some of the less interest loan banks in the market. ...
  • HDFC Bank. ...
  • ICICI Bank. ...
  • Bank of Baroda. ...
  • Axis Bank. ...
  • Punjab National Bank (PNB) ...
  • Kotak Mahindra Bank. ...
  • Union Bank of India.

How can I get the lowest interest rate on a car?

How to Get a Low Interest Rate on a Car
  1. Be aware of your credit score. Be aware of what your credit score is and if there are any points that need to be corrected before you apply for a car loan.
  2. Clean up your score. ...
  3. Consider Refinance Loans. ...
  4. Enlist a cosigner. ...
  5. Consider in-house financing.

What bank has the best car loan rates?

  • LightStream - New car purchase loan. 4.5. NerdWallet rating. Est. APR. 7.74-15.69% Loan amount. $5,000-$100,000. ...
  • Consumers Credit Union - New car purchase loan. 5.0. NerdWallet rating. Est. APR. 5.74-17.54% Loan amount. ...
  • Alliant Credit Union – New car purchase loan. 4.0. NerdWallet rating. Est. APR. 5.24-23.25% Loan amount.

Which car company is offering 0% APR?

Renault 0% APR Representative

Discover 0% APR Representative offers across the Renault car range including the Renault Clio E-Tech.

What credit score is needed to buy a car 0 down?

A target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 6.7% or better, or a used-car loan around 9.63% or lower. Superprime: 781-850. 5.08%. 7.41%.

Will banks negotiate car loan rates?

Yes, just like the price of the vehicle, the interest rate is negotiable.

How much money should you have in the bank to buy a car?

The higher the down payment, the less you'll have to pay in monthly payments—and in interest. Some experts suggest putting down at least 20% of the purchase price, but there's no reason you can't go higher than that with the right savings strategy—or even purchase your car outright.

What is the lowest a bank will finance a car?

Generally, lenders don't let you finance less than $5,000, but some direct lenders' caps are even higher. The good news is you can make the overall cost of your loan more affordable without worrying about the financing limit. Loan amount requirements.

What is a good credit score?

There are some differences around how the various data elements on a credit report factor into the score calculations. Although credit scoring models vary, generally, credit scores from 660 to 724 are considered good; 725 to 759 are considered very good; and 760 and up are considered excellent.