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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, whether you are buying a car or refinancing the loan you already have.

Last reviewed: · Reviewed by the TheSavvyAmericans editorial team

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 both the market and your credit, so prequalify or request a quote on each lender's official site to see your real numbers rather than the advertised teaser.

01
Our top pick

LightStream

APR: Very low (strong credit)

Best for strong-credit buyers

  • Low APRs for strong credit
  • No fees and no vehicle restrictions
4.6 / 5
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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.

Also worth knowing

  • 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
02
Best prequalification

Capital One Auto Finance

APR: Credit-based

Best for shopping with prequalification

  • Soft-pull prequalification
  • Shop participating dealers by real terms
4.4 / 5
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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.

Also worth knowing

  • 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

Every pick on this page: independently researched · ranked on our published methodology · compensation never sets the order

03
Best bank rates

Bank of America

APR: Competitive

Best for existing bank customers

  • Competitive rates with member discounts
  • Fast online decisions
4.2 / 5
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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.

Also worth knowing

  • 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
04
Best credit union

PenFed Credit Union

APR: Competitive

Best member-based rates

  • Competitive credit union rates
  • Open membership
4.3 / 5
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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.

Also worth knowing

  • 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
05
Best marketplace

myAutoLoan

APR: Varies by lender

Best for comparing multiple offers

  • Multiple offers from one application
  • Covers purchase, refi and lease buyout
4.1 / 5
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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.

Also worth knowing

  • 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
06
Best for refinancing

Auto Approve

APR: Varies by lender

Best refinance specialist

  • Refinance-focused expertise
  • Shops multiple lenders for you
4.0 / 5
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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.

Also worth knowing

  • 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
07
Best online buying

Carvana

APR: Credit-based

Best for buy-and-finance online

  • Fully online buying and financing
  • Soft-pull prequalification
3.9 / 5
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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.

Also worth knowing

  • 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

Side by side

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

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.

Important: Cars lose value the moment you drive off, so be wary of long terms that leave you owing more than the car is worth, what people call being underwater. Skip the dealer add-ons that get quietly rolled into the loan, and judge the deal by the total cost, not just the monthly payment the finance office will steer you toward.

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.

Key takeaways

  • 1Get preapproved before you set foot in a dealership. It hands you a rate to beat and, frankly, most of your negotiating power on the financing.
  • 2Do not overlook credit unions and big banks. PenFed and Bank of America are often genuinely competitive, while marketplaces like myAutoLoan and Capital One let you compare offers with a soft pull that leaves your score alone.
  • 3Refinancing an existing auto loan can lower your payment if rates have dropped, your credit has improved, or your original dealer loan was quietly marked up. It is worth checking even if you had not planned on it.
  • 4Compare the APR and the total interest over the full term, not just the monthly payment. A longer term makes the monthly number look friendlier while costing you more in the end.

How we picked and scored these options

We rank auto lenders independently, and compensation never sets the order. Because auto financing sprawls across banks, credit unions and marketplaces, we weight rate competitiveness, how painless it is to compare offers, and whether the option actually fits buying versus refinancing, which are not the same problem.

  • 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: These 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 really does depend on which situation you are in: financing a fresh purchase, or replacing a loan you already have. They call for different moves.

  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, without much hesitation. A preapproval from a bank, credit union or marketplace gives you a firm rate to hold the dealer's financing against. Dealers can sometimes beat it, which is great, but without a preapproval you have no benchmark and a lot less negotiating power.
Does applying with several auto lenders hurt my credit?
Rate shopping is designed to be safe, which is easy to forget when you are nervous about your score. 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 several lenders barely moves the needle.
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. Just do the math first: make sure the interest you save outweighs any refinance fees, and resist needlessly stretching the term to shrink the payment.
What term length should I choose?
Go with the shortest term you can comfortably afford. Longer terms lower the monthly payment but quietly increase total interest and raise the odds of owing more than the car is worth. A lot of buyers land at 60 months or less, and there is good reason for that.

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