Should I get preapproved before car shopping?

Yes. A preapproval from an outside lender gives you a firm rate and budget, and it turns dealer financing into something that has to compete for your business.

Can I refinance my auto loan?

If your credit has improved or rates have dropped since you bought, refinancing can lower your payment or total interest. Most lenders require your current loan to be in good standing.

What is a lease buyout loan?

A lease buyout loan finances the purchase of your leased vehicle at its residual value when the lease ends, turning your remaining payments into ownership.

Does shopping for auto loans hurt my credit?

Rate-shopping inquiries for auto loans made within a short window (typically 14–45 days) are generally counted as a single inquiry by credit scoring models.

Best Auto Loans of October 2026

Compare auto loan and refinance rates before you visit the dealer.

Updated October 19, 2026 ·

Illustration of a car with a loan document for auto financing

GoalCredit scoreVehicle year

How we rate

Our scores weigh pricing transparency, product features, eligibility, and customer experience — alongside our commercial relationships with partners.

Read our rating methodology

How auto loans work

An auto loan is a secured installment loan where the vehicle serves as collateral. You make fixed monthly payments over a term, typically 36–84 months, and own the car outright once the loan is paid off.

How to compare auto loan offers

Get prequalified with several lenders before visiting a dealership — it gives you a rate to beat. Compare APRs across the same term, watch for add-on fees, and be cautious with very long terms that can leave you owing more than the car is worth.

Pros and cons

Financing lets you spread a large purchase over time and build credit with on-time payments. Longer terms lower the payment but increase total interest and the risk of negative equity.

How to qualify

Lenders review your credit score, income, debt-to-income ratio, and the vehicle's age and value. Refinancing usually requires that you're current on your existing loan and that the car meets age and mileage limits.

Do the math

Auto loan payment calculator

Vehicle price ($)Down payment ($)APR (%)Term (months)

Monthly payment

$500.95

Total repayment

$30,057

Total interest

$5,057

Frequently asked questions

Auto loan rates are set by partner lenders based on your credit profile, loan term, vehicle age and mileage, and loan-to-value ratio. Advertised rates assume strong credit; your actual rate may differ. Approval is not guaranteed.