Current auto loan rates.

How auto loan rates are set

Every auto loan APR you see is built from three things stacked on top of each other:

1. The lender's cost of capital. Banks borrow at rates tied to the Federal Reserve and the broader bond market. When the Fed raises rates, lenders raise APRs.
2. Your risk premium. Lenders price in the chance you default. Higher FICO, lower premium. A 720+ borrower might pay 1.5 points above the lender's cost; a 580 borrower might pay 8+.
3. The dealer markup, if applicable. When you finance through a dealer, the dealer gets a "buy rate" from the bank and is allowed to mark it up - typically 0.5–2.5 points - and pocket the spread.

The cleanest way to beat a dealer's offer is to walk in with a direct pre-approval from a bank or credit union. Even if you ultimately finance through the dealer, the competing offer caps how much they can mark up.

Bank vs credit union vs online lender

Credit unions tend to publish the lowest APRs but require membership. PenFed lets anyone join via a small charitable donation. Navy Federal and USAA require military / DoD ties.

National banks like Chase, Wells Fargo, and U.S. Bank offer the convenience of branches and relationship discounts (0.25–0.50% off if you have a checking account on auto-pay), but their direct-to-consumer APRs are typically half a point above the best credit unions.

Online lenders like LightStream and Ally compete on speed and digital UX. LightStream funds same-day for excellent-credit borrowers; AutoPay and Caribou specialize in refinancing and shop your file across multiple banks.

Frequently asked

What is a good auto loan rate today?

Below the average for your credit tier. For excellent credit (720+) that means roughly 5.5–6.5% on new and 6–7% on used. Refinance APRs typically beat purchase APRs by 0.25–0.5 points for the same credit profile.

Are auto loan rates negotiable?

Yes - at the dealership, with a competing pre-approval in hand. Direct-to-consumer rates from banks and credit unions are not generally negotiable.

How often do rates change?

Most lenders update their published rate sheets weekly. Movements track the Federal Reserve's benchmark rate and the bond market. We collect some lenders automatically and check the rest by hand.