How often do auto loan rates change?

Lenders update their published rate sheets weekly to monthly, but movement closely tracks the Federal Reserve's benchmark rate and the broader bond market. We pull rates daily and surface the most recent advertised APRs.

Do credit unions really offer lower rates than banks?

On average, yes — credit unions are not-for-profit and often beat bank APRs by 0.25–1.0 percentage points. PenFed and Navy Federal in particular publish some of the lowest rates in the market. The catch: membership eligibility (which is broad in some cases, narrow in others).

Current Auto Loan Rates May 2026

Q: What is a good auto loan rate today?

A good auto loan rate today is generally anything below the average for your credit tier. For 720+ FICO borrowers, that means roughly 5.5–6.5% APR on a new car and 6–7% on used. Sub-prime borrowers (below 620) typically see double-digit APRs.

Q: Are auto loan rates negotiable?

Yes — especially when you have a competing pre-approval in hand. Dealers mark up the rate they get from the bank, so showing a direct lender's offer is the fastest way to negotiate down.

New car loans

Lowest APRs typically go to borrowers with 720+ FICO buying a new vehicle from a franchised dealer.

Lender	Type	Min credit	Term	APR (from)
NA Navy Federal	Credit Union	640+	60 mo	5.29%	View →
CA Capital One	Bank	660+	60 mo	5.39%	View →
PE PenFed	Credit Union	650+	60 mo	5.49%	View →
US USAA	Bank (Military)	640+	60 mo	5.49%	View →
LI LightStream	Bank (Online)	670+	60 mo	5.99%	View →
AL Ally	Bank (Online)	620+	60 mo	6.19%	View →
U. U.S. Bank	Bank	660+	60 mo	6.29%	View →
BA Bank of America	Bank	660+	60 mo	6.39%	View →

Used car loans

Used-car APRs run 0.5–1.5 points above new — lenders price in higher depreciation risk.

Lender	Type	Min credit	Term	APR (from)
NA Navy Federal	Credit Union	640+	60 mo	5.69%	View →
PE PenFed	Credit Union	650+	60 mo	5.79%	View →
CA Capital One	Bank	660+	60 mo	5.89%	View →
US USAA	Bank (Military)	640+	60 mo	5.99%	View →
LI LightStream	Bank (Online)	670+	60 mo	6.29%	View →
AL Ally	Bank (Online)	620+	60 mo	6.49%	View →
U. U.S. Bank	Bank	660+	60 mo	6.59%	View →
BA Bank of America	Bank	660+	60 mo	6.79%	View →

Refinance loans

Replace your current loan with a lower APR. Best targets: borrowers whose credit improved or who took a high dealer rate.

Lender	Type	Min credit	Term	APR (from)
NA Navy Federal	Credit Union	640+	60 mo	5.39%	View →
PE PenFed	Credit Union	650+	60 mo	5.49%	View →
CA Capital One	Bank	660+	60 mo	5.49%	View →
AU AutoPay	Refinance Marketplace	600+	60 mo	5.69%	View →
US USAA	Bank (Military)	640+	60 mo	5.69%	View →
CA Caribou	Refinance Marketplace	630+	60 mo	5.79%	View →
LI LightStream	Bank (Online)	670+	60 mo	5.99%	View →
U. U.S. Bank	Bank	660+	60 mo	6.19%	View →

Lease buyout loans

Finance your leased vehicle's residual value to keep it. Specialty product — only some lenders offer it.

Lender	Type	Min credit	Term	APR (from)
NA Navy Federal	Credit Union	640+	60 mo	5.59%	View →
PE PenFed	Credit Union	650+	60 mo	5.69%	View →
AU AutoPay	Refinance Marketplace	600+	60 mo	5.99%	View →
CA Caribou	Refinance Marketplace	630+	60 mo	6.09%	View →
LI LightStream	Bank (Online)	670+	60 mo	6.19%	View →

How auto loan rates are set

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

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.
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+.
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 pull rates daily.

Current auto loan rates.