Best auto loan rates in October 2025

• Loan amount: How much you want to borrow. Auto loan amounts typically range from $5,000 to $100,000.
• Loan term: How many years you choose to pay back the loan. Auto loan terms are usually between 24 and 84 months. Experiment with shorter and longer terms to find the right payment for your budget.
• Loan interest rate: How much the lender is charging in interest. Your auto loan rate will be based on the amount you borrow, the term you choose and your credit score.

• Total loan amount paid: This is the principal amount you borrow.
• Total cost of loan: This is how much you’ll pay, including interest charges, over the term you choose.
• Total interest paid: This is how much interest you’ll pay if you keep the loan for the full term. 

If you are looking to purchase a new car, you should seek out a new car loan. Dealerships offer new car financing on the lot, but you can also get them from banks, credit unions and online lenders. Shop around for your best interest rate and terms.

Buying a used car from a dealership will require a used car loan. You can get them at the same places you would get a new car loan. Lenders often limit cars’ age and mileage.

If you originally took out a loan at a dealership, or just didn't get a good rate, you may want to refinance your car and get a better interest rate. Or you can rework your terms to get a lower monthly payment. This process simply replaces your current auto with a new one. These loans aren't available through dealerships.

To get a little extra cash with your refinance, you can take out a cash-out refinance loan. Along with the balance you are refinancing, you can borrow against the equity you have in your car.

When you are buying a used car from an individual seller and do not have the cash on hand, you will need a private party auto loan. These are less common, but available at some banks, credit unions and online lenders.

Leasing a car can come with the option to buy the vehicle at the end. You can take out a lease buyout loan to finance that purchase. Lease buyout loans tend to be similar to used car loan rates.

Start by considering your financial situation and setting a realistic car-buying budget. Review your monthly budget and check your credit score so you know what you can afford. Once you have your budget, you can begin evaluating lenders. Auto loan marketplaces like Daily Tech Finance can streamline this process for you.

Narrow your lending options to at least three lenders whose eligibility you meet and apply for preapproval. Be sure to complete your applications within 14 days to avoid damaging your credit score. Once you've chosen your lender, submit a full application and finalize your loan.

Average used car interest rates range from 6.82 percent to 21.58 percent, depending on your credit score, with the mean for all borrowers being 11.87 percent, according to the most recent statistics from Experian. 

A car loan allows you to spread out the cost of a vehicle over time, and keeping up with your monthly payments can help you build credit. When you finish paying off your car, you own it outright.

Monthly payments on auto loans can be expensive, often sitting around $700 per month. If you can't keep up with paymen`ts, you risk damaging your finances and possibly having your vehicle repossessed. Your vehicle's value also depreciates over time, and it is possible to become upside-down on an auto loan if you don't manage your loan well.

Auto loans let you borrow the money you need to purchase a car. Since car loans are typically secured, they require you to use the vehicle you are buying as collateral for the loan.

Most auto loans offer a fixed interest rate and monthly payment, with terms that range from 24 to 84 months. Many dealerships offer financing, but you can also find auto loans at national banks, local credit unions and online lenders.

Auto loan interest rates are calculated based on the amount of money you're borrowing, how long you want to borrow it and the value of the car you're buying. Your financial situation also influences your rate. Lenders will assess factors such as your income, DTI ratio and credit score. 

Each lender has its own formula for evaluating borrowers, so prequalify with multiple lenders before accepting a loan offer. This ensures you get the best possible rate.