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The 7 best auto loan and refinance options

We compared banks, credit unions and marketplaces on rates, soft-pull prequalification, loan types and terms, for buying a car or refinancing the loan you already have.

Last reviewed: · Reviewed by the TheSavvyAmericans editorial team

Important: Cars lose value over time, so avoid long terms that leave you owing more than the car is worth (being underwater). Skip unnecessary dealer add-ons rolled into the loan, and make sure the total cost, not just the monthly payment, fits your budget.

Key takeaways

  • 1Getting preapproved before you visit a dealer gives you a rate to beat and real negotiating power on financing.
  • 2Credit unions like PenFed and big banks like Bank of America often have competitive rates, while marketplaces like myAutoLoan and Capital One let you compare offers with a soft pull.
  • 3Refinancing an existing auto loan can lower your payment if rates or your credit have improved, or if your original dealer loan was marked up.
  • 4Compare the APR and the total interest over the full term, not just the monthly payment, since a longer term lowers the payment but costs more.
Advertising disclosure: TheSavvyAmericans may receive compensation when you apply for or open a product through links on this page. This does not influence our editorial evaluations. Products are reviewed using a documented methodology. Learn how we make money.

The 7 best auto loan and refinance options

We compared lenders for buying and refinancing a vehicle on their rates, whether you can prequalify with a soft credit check, the loan types they handle and their terms. Auto rates move with the market and your credit, so prequalify or request a quote on each lender’s official site to see your real numbers.

Auto loan and refinance options compared at a glance
#ServiceBest forRatingLoan typesPrequalifyBest for
1LightStreamBest for strong-credit buyers4.6 / 5Purchase, used, refiNo (hard pull)Excellent credit
2Capital One Auto FinanceBest for shopping with prequalification4.4 / 5Purchase, refiYes (soft pull)Dealer shopping
3Bank of AmericaBest for existing bank customers4.2 / 5Purchase, refiLimitedBofA customers
4PenFed Credit UnionBest member-based rates4.3 / 5Purchase, used, refiVariesCredit union value
5myAutoLoanBest for comparing multiple offers4.1 / 5Purchase, refi, buyoutYes (matches)Comparison shopping
6Auto ApproveBest refinance specialist4.0 / 5Refinance, lease buyoutYes (soft quote)Refinancing
7CarvanaBest for buy-and-finance online3.9 / 5Purchase (Carvana)Yes (soft pull)Online car buying
#1Rank
Editor's ChoiceBest for strong-credit buyers

LightStream

4.6 / 5

LightStream offers low-rate auto loans for purchase or refinance with no fees and no lien on the vehicle, so the car is not used as collateral. It is a top pick for borrowers with strong credit who want a simple, low-cost loan.

Pros

  • Low APRs for strong credit
  • No fees and no vehicle restrictions
  • Purchase, used and refinance covered
  • Same-day funding available

Cons

  • Requires good to excellent credit
  • No soft-pull prequalification
  • Unsecured structure means strict approval
Loan types
Purchase, used, refi
Prequalify
No (hard pull)
APR
Very low (strong credit)
Best for
Excellent credit
Visit LightStream

Official site opens in a new tab

#2Rank
Best prequalificationBest for shopping with prequalification

Capital One Auto Finance

4.4 / 5

Capital One Auto Navigator lets you prequalify with a soft credit check and shop participating dealers by your real terms. It works for a wide range of credit profiles, which makes it a strong starting point.

Pros

  • Soft-pull prequalification
  • Shop participating dealers by real terms
  • Serves a broad range of credit
  • Well-known lender with a solid app

Cons

  • Purchases limited to participating dealers
  • Best rates still need good credit
  • Refinance availability varies
Loan types
Purchase, refi
Prequalify
Yes (soft pull)
APR
Credit-based
Best for
Dealer shopping
Visit Capital One

Official site opens in a new tab

#3Rank
Best bank ratesBest for existing bank customers

Bank of America

4.2 / 5

Bank of America offers competitive auto rates with a rate discount for Preferred Rewards members and lets you get a decision quickly online. It is a convenient choice if you already bank there.

Pros

  • Competitive rates with member discounts
  • Fast online decisions
  • Purchase and refinance available
  • Branch support if you want it

Cons

  • Best rates need strong credit and membership
  • Vehicle age and mileage limits apply
  • No prequalification in every case
Loan types
Purchase, refi
Prequalify
Limited
APR
Competitive
Best for
BofA customers
Visit Bank of America

Official site opens in a new tab

#4Rank
Best credit unionBest member-based rates

PenFed Credit Union

4.3 / 5

PenFed is a large credit union open to everyone that offers competitive auto rates and a car-buying service. Credit unions often beat banks on rate, and membership is easy to obtain.

Pros

  • Competitive credit union rates
  • Open membership
  • Car-buying service for deals
  • Purchase and refinance covered

Cons

  • Membership required (easy to join)
  • Best rates need good credit
  • Fewer branches than big banks
Loan types
Purchase, used, refi
Prequalify
Varies
APR
Competitive
Best for
Credit union value
Visit PenFed

Official site opens in a new tab

#5Rank
Best marketplaceBest for comparing multiple offers

myAutoLoan

4.1 / 5

myAutoLoan is a marketplace that returns multiple loan offers from different lenders after one short form, covering purchase, used, refinance and lease buyout. It is a fast way to see several options at once.

Pros

  • Multiple offers from one application
  • Covers purchase, refi and lease buyout
  • Serves a range of credit profiles
  • Quick online process

Cons

  • You deal with the underlying lender for terms
  • Offers depend on your profile
  • May generate lender follow-up contact
Loan types
Purchase, refi, buyout
Prequalify
Yes (matches)
APR
Varies by lender
Best for
Comparison shopping
Visit myAutoLoan

Official site opens in a new tab

#6Rank
Best for refinancingBest refinance specialist

Auto Approve

4.0 / 5

Auto Approve focuses on refinancing and shops its lender network to lower your rate or payment, handling much of the paperwork for you. It is a good fit if refinancing is your only goal.

Pros

  • Refinance-focused expertise
  • Shops multiple lenders for you
  • Handles paperwork and payoff
  • Soft-pull quote to start

Cons

  • Refinance only, not purchase
  • Savings depend on your current loan
  • Availability varies by state and vehicle
Loan types
Refinance, lease buyout
Prequalify
Yes (soft quote)
APR
Varies by lender
Best for
Refinancing
Visit Auto Approve

Official site opens in a new tab

#7Rank
Best online buyingBest for buy-and-finance online

Carvana

3.9 / 5

Carvana lets you shop cars, prequalify with a soft credit check and finance entirely online, with the loan tied to a Carvana purchase. It suits buyers who want a fully online, one-stop experience.

Pros

  • Fully online buying and financing
  • Soft-pull prequalification
  • Real terms tied to specific cars
  • Home delivery in many areas

Cons

  • Financing tied to buying from Carvana
  • Rates may trail dedicated lenders
  • Not for refinancing an existing loan
Loan types
Purchase (Carvana)
Prequalify
Yes (soft pull)
APR
Credit-based
Best for
Online car buying
Visit Carvana

Official site opens in a new tab

Ratings are TheSavvyAmericans editorial scores based on the criteria in the methodology section below, not user reviews or paid placements. Features and pricing change often, so confirm the current details on each provider’s official site before you sign up.

How we picked and scored these options

We rank auto lenders independently, and compensation never sets the order. Because auto financing spans banks, credit unions and marketplaces, we weight rate competitiveness, how easy it is to compare offers, and whether the option fits buying or refinancing.

  • Rate competitiveness: how the lender’s APRs compare for similar credit profiles.
  • Prequalification: whether you can see real terms with a soft credit check before committing.
  • Loan types: purchase, used, refinance and lease buyout coverage.
  • Terms and flexibility: term lengths, vehicle limits and how easy the process is.
  • Transparency and support: clear terms, no surprise fees, and responsive service.

Good to know: Ratings are editorial assessments, not user reviews. Auto rates change frequently and depend on your credit and the vehicle, so confirm your real rate on each lender’s official site.

Buying versus refinancing

The right lender depends on whether you are financing a new purchase or replacing an existing loan.

  1. 1To buy: get preapproved by a bank, credit union or marketplace first, then let the dealer try to beat that rate. Preapproval is your leverage.
  2. 2To refinance: check whether your current APR is above today’s rates or your original loan was marked up at the dealer. If so, a refinance can cut your payment.
  3. 3Either way, compare the APR and total interest over the full term, and keep the term as short as your budget allows to avoid going underwater.

Frequently asked questions

Should I get preapproved before going to the dealership?
Yes. A preapproval from a bank, credit union or marketplace gives you a firm rate to compare against the dealer’s financing. Dealers can sometimes beat it, but without a preapproval you have no benchmark and less negotiating power.
Does applying with several auto lenders hurt my credit?
Rate shopping is designed to be safe. Multiple auto-loan inquiries within a short window (generally 14 to 45 days, depending on the scoring model) are usually treated as a single inquiry, so comparing lenders has minimal impact.
When is refinancing an auto loan worth it?
Refinancing can pay off when market rates have dropped, your credit has improved since you bought the car, or your original dealer loan carried a marked-up rate. Make sure the interest you save outweighs any refinance fees and that you do not needlessly extend the term.
What term length should I choose?
Choose the shortest term you can comfortably afford. Longer terms lower the monthly payment but increase total interest and raise the risk of owing more than the car is worth. Many buyers aim for 60 months or less.

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