This number is a percentage. It’s what the lender charges for loaning you the money. The actual amount you pay the lender is based on this percentage and how much you borrow. Here’s a table showing the APR you may qualify for based on your credit score.
| Credit Score | Average APR |
|---|---|
| 720 or higher | 7.53% |
| 680-719 | 9.19% |
| 660-679 | 11.48% |
| 640-659 | 13.18% |
| 620-639 | 15.37% |
| 580-619 | 17.13% |
| 560-579 | 18.54% |
| Less than 560 | 19.92% |
There are three ways you could lower your payment:
If you can afford to pay more, consider decreasing your loan term. This would increase your monthly payment and save you money in interest. Or you could consider buying a more expensive vehicle.
By calculating the largest cost of car ownership — the payment — before you shop, you know your price limit and won’t become infatuated with a new-car smell and go way over budget. But don’t forget to use the car loan calculator when you’re out shopping to double-check that everything’s in line and you’re getting what you want at a monthly payment you can afford.
If you’re shopping for an auto loan, you can fill out a single form with LendingTree and receive up to five auto loan offers from top lenders.
We examined closed LendingTree auto loans from H1 2022. We wanted to know: 1) which lenders consumers chose most often, and 2) which ones offered the lowest average APR. We also looked at the advertised starting car loan rates of large, national lenders to compare.
To find the best rates for those with military connections, we looked at rates offered by USAA Bank, Navy Federal Credit Union, Pentagon Federal Credit Union and Randolph-Brooks Federal Credit Union, and chose the one with the lowest advertised APR for a traditional new car loan not including any other discounts that may be available, such as breaks for using a car-buying service.
*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 5.99% APR with a term of 3 years would result in 36 monthly payments of $304.17. © 2023 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Our calculator shows you the payment you’d get based on a car’s price. It’s important to figure out what a price in the tens of thousands of dollars would actually translate as your monthly payment. You should use an auto loan calculator when you first car shop online so you’ll know your price limit. You should also use one at the dealership to make sure that the dealer isn’t trying to inflate your monthly payment and slip in add-ons.
Before you go to the dealer, get prequalified for an auto loan so you know what car loan APR you deserve and the dealer can’t pad the rate and take the difference as profit. Potential lenders include your local credit union, bank or online lender. You could fill out an online form at LendingTree and get up to five offers at once from auto lenders.
