Find the Lowest Auto Loan Rates for New and Used Cars

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When banks compete, you win.

Short-term loans with cheap rates

Those with military connections

Car shopping and comparing sticker prices

Bad credit auto loans

Used car loans

An online experience

Those who prefer big banks

Best car loan overall

Quick car loans

Private-party auto loans

Dealerships in the Chase network

More Options

Lender	Best for…	Starting APRs	Loan terms	Loan amounts
	Short-term loans with cheap rates	3.50%	12-84 months	Up to $100,000	See Personalized Rates
	Car shopping and comparing sticker prices	3.89%	36-84 months	Up to $150,000	See Personalized Rates
	Those with military connections	4.09%	12-96 months	Starting at $250	See Personalized Rates
	Bad credit auto loans	4.85%	24-96 months	$2,500-$100,000	See Personalized Rates
	Private-party auto loans	5.34% (with autopay)	12-84 months	$5,000-$100,000	See Personalized Rates
	Used car loans	5.49% (with discounts)	Up to 84 months	Up to 130% of car’s value	See Personalized Rates
	Best car loan overall	5.36%

Capital One auto loans APR and loan term disclosure

Please note that your starting APR depends on the type of car loan you get and the length of your loan term.

Capital One new auto loans
Starting at 5.36% APR for 60-month loan terms
Starting at 5.60% APR for 72-month loan terms

Capital One used auto loans
Starting at 6.00% APR for 60-month loan terms
Starting at 6.39% APR for 72-month loan terms

Loan Term Disclosure

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 $25,000 loan at 6.49% APR with a term of 3 years would result in 36 monthly payments of $766.11. © 2024 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.

Learn more about how we chose the best auto loans.

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Southeast Financial Credit Union (SFCU): Best for short-term car loans with cheap rates

Starting APR
Loan terms
Loan amounts

• Competitive rates for short loan terms
• Recent college grads may be eligible for a car loan even if they have no credit
• Can apply to skip a payment if you need extra time

• Have to become a member to borrow
• Can’t check rates without hurting your credit
• Not many branch locations

Why we like it

Credit union car loans tend to offer the lowest rates, and Southeast Financial Credit Union (SFCU) is no exception. It’s frequently at the top of our list of the best car loan rates.

What to know

SFCU’s rates are especially low on short-term car loans. If you have excellent credit, you could qualify for an annual percentage rate (APR) as low as 3.50% on a 12-month term.

But if you prefer to do business in person, SFCU might not be the best choice — that is, unless you live in central Tennessee. That’s where nearly all of SFCU’s brick-and-mortar branches are located.

How to qualify

SFCU doesn’t offer prequalification, so you’ll need to agree to a hard credit hit to see if you’re eligible. You’ll also need to join the credit union before you can borrow.

All SFCU members have to open a savings account with a deposit of at least $5. To become a member, you’ll need to meet one of the requirements below:

• Make a $5 donation to Autism Tennessee
• Be a current employee or retiree of a Southeast Financial Select Employee Group
• Be related to a current SFCU member
• Live, work, worship or go to school in certain parts of Tennessee, Kentucky or Mississippi

PenFed Credit Union: Best for car shopping and comparing sticker prices

Starting APR
Loan terms
Loan amounts

• Free car-buying service can help you compare cars from dealerships near you
• Cheaper rates if you use car-buying service
• Can finance up to 25% more than what the car is worth for cash in your pocket

• Required to join credit union (but membership is open to all)
• Must use car-buying service to get PenFed’s lowest rates
• Can only get your loan as a check in the mail (direct deposit not available)

Why we like it

If you want to compare car prices and get an auto loan at the same time, consider using PenFed Credit Union’s free car-buying service, in partnership with TrueCar. PenFed offers a lower rate (starting at 3.89% for new cars) if you finance a car through the program.

What to know

PenFed offers car loans whether or not you use its free car-buying service. However, financing a car through the service will give you access to one of the lowest starting car loan rates available now. If you don’t use its car-buying service, PenFed’s auto loan rates for a new car start at 4.69%.

Like with any credit union auto loan, PenFed requires you to join before you can borrow. Still, it’s easy to join, as membership is open to everyone.

How to qualify

To qualify for a PenFed loan, you have to meet the following requirements:

• Membership: PenFed membership (anyone can join)
• Administrative: Open a PenFed savings account with $5 deposit (may need to submit documents to verify your identity and income)

Navy Federal Credit Union (NFCU): Best car loan for those with military connections

Starting APR
Loan terms
Loan amounts

Starting at $250

• Rate discounts for active-duty and retired military
• Private-party car loans available
• Terms available for up to 96 months

• Must have military affiliation to join
• Sends the loan check to your co-borrower instead of you if you don’t live in the same household
• Can’t change payment due date

Why we like it

If you have an eligible connection to the armed forces, you can join Navy Federal Credit Union (NFCU). Being a member provides you access to a variety of banking and borrowing services, including low car loan rates.

What to know

NFCU gives active-duty and retired military a 0.25% rate discount on auto loans, along with other unique perks. For instance, if you’re on active duty, you can get paid early if you get your paycheck directly deposited into an Active Duty Checking account.

Still, like many other car loan lenders, NFCU doesn’t disclose its minimum credit score requirements. It also has strict membership requirements that not everyone will meet.

How to qualify

Navy Federal Credit Union only offers loans to people with military connections, including:

• Active duty members of the military (regardless of branch)
• Veterans, retirees and annuitants
• Those in the Delayed Entry Program (DEP)
• Department of Defense (DoD) Officer Candidates and ROTC
• DoD Reservists
• DoD civilian personnel
• Immediate family of military members, as well as household members

You’ll need to meet the following requirements:

• Administrative: Provide your Social Security number, home address, credit card or bank account number and a form of government identification
• Membership: Create a Membership Savings Account and maintain a $5 balance to join and continue membership in the credit union

Autopay: Best bad credit car loan

User Ratings & Reviews

Ratings and reviews are from real consumers who have used the lending partner’s services.

User ratings:
User Ratings & Reviews

Ratings and reviews are from real consumers who have used the lending partner’s services.

Starting APR
Loan terms
Loan amounts

• Can qualify with a credit score as low as 580
• Able to check rates without hurting credit
• Works with a large network of lenders

• No mobile app
• Won’t know what fees apply until you know what lender you’re going with

Why we like it

It’s not always easy to find an auto loan when you have bad credit — however, Autopay works with borrowers with as low as 580. You can also protect your credit score by prequalifying for Autopay. Not all lenders and marketplaces offer this option.

What to know

Autopay is an auto loan marketplace. Though its starting APR is 4.85%, it’s possible you won’t be offered a rate this low if you have bad credit (as is the case with many lenders). Associated fees can also be hard to budget for since they vary by lender.

How to qualify

Autopay connects borrowers to partner lenders and financial institutions. These partners all have different eligibility requirements.

To use the marketplace, you and the vehicle you’re financing must meet the requirements below:

• Credit score: 580+
• Income: At least $2,500 per month
• Vehicle restrictions: Car must be less than 10 years old and have no more than 150,000
• Administrative: You must provide your driver’s license, insurance, proof of income and residence and a payoff letter if you’re refinancing

PNC Bank: Best for private-party car loans

Starting APR

5.34% (with autopay)

Loan terms
Loan amounts

• May give you extra time to pay or allow you to make partial payments if you’re experiencing a financial hardship
• Can use a private-party auto loan to buy a car that’s not fully paid off by the current owner
• Rate discount for autopay through a PNC checking account

• Can only apply for a private-party auto loan in person at a branch
• Only available in 27 states and the District of Columbia
• Must be buying a car that’s worth at least $5,000

Why we like it

Buying a car from a private party instead of a dealership can save you money, but not all lenders fund these types of purchases. PNC Bank offers several types of auto loans, including private-party car loans.

What to know

With PNC Bank, you might even be able to buy a car that isn’t yet fully paid off. As long as the seller comes with you to your loan closing, PNC can use a portion of your loan to pay off the existing loan. Then, you can transfer ownership.

How to qualify

PNC Bank doesn’t offer prequalification — so if you want to check rates, you’ll have to take a hard credit hit.

You can formally apply online for most of PNC’s auto loans. However, if you’re getting a private-party auto loan, you need to go to a branch — currently, PNC has branches in 27 states. Either way, you don’t need to be a PNC member to borrow.

Digital Federal Credit Union (DCU): Best for used car loans

Starting APR

5.49% (with discounts)

Loan terms

Up to 84 months

Loan amounts

Up to 130% of car’s value

• Same rates for used and new cars
• Can borrow up to 30% more than the vehicle’s value
• 0.25% rate discount for fully electric cars

• Must join credit union
• Customer service not available on Sundays
• Can’t check rates without hurting your credit

Why we like it

Most lenders charge a higher APR on used car loans, but not Digital Federal Credit Union (DCU). Whether you’re buying used or new, you can enjoy the same low rate.

What to know

If you have excellent credit, you might be able to borrow more than what the car’s worth with a DCU car loan. In this case, any money left over after you finance your car goes in your pocket. This could help you cover registration and insurance costs.

Like other credit unions, though, you’ll have to become a member to borrow. You’ll also need to take a hard credit pull to check your eligibility — you won’t be able to prequalify.

How to qualify

As a credit union, DCU requires you to be a member to take out a loan. To join, you’ll need to:

• Live, work, worship or go to school in certain Massachusetts communities
• Work for a participating employer
• Join a participating association (annual dues between $10 and $120)
• Open a DCU savings account with a deposit of at least $5

Capital One: Best car loan overall

User Ratings & Reviews

Ratings and reviews are from real consumers who have used the lending partner’s services.

User ratings:
User Ratings & Reviews

Ratings and reviews are from real consumers who have used the lending partner’s services.

Starting APR

Capital One auto loans APR and loan term disclosure

Please note that your starting APR depends on the type of car loan you get and the length of your loan term.

Capital One new auto loans
Starting at 5.36% APR for 60-month loan terms
Starting at 5.60% APR for 72-month loan terms

Capital One used auto loans
Starting at 6.00% APR for 60-month loan terms
Starting at 6.39% APR for 72-month loan terms

Loan terms
Loan amounts

Starting at $4,000

• Only need a credit score of at least 500 to qualify
• Can get prequalified or preapproved — it’s your choice
• Auto Navigator tool can help you find your next car and stick within your budget

• Can only buy from certain dealerships
• No customer service on Sundays
• No interest rate discounts

Why we like it

Capital One offers car loans to both good and bad-credit borrowers, and its Auto Navigator tool can make it easier to find a car near you. Capital One also has branches and cafés, in case an in-person element to borrowing is important to you.

What to know

Use Capital One’s Auto Navigator tool to prequalify for a car loan and find your car all at once. Because prequalifying is a soft credit check, it won’t hurt your credit to browse.

That said, Capital One won’t finance a vehicle purchase from just anywhere — you’ll have to buy from a Capital One partner dealer.

How to qualify

You could be eligible for a car loan through Capital One as long as you have a credit score of at least 500. You can prequalify on Capital One’s website to get an idea of where you stand.

Capital One also has vehicle eligibility requirements. To be eligible for financing, the car needs to:

• Be a model year 10 years or newer
• Have fewer than 120,000 miles
• Be purchased at a participating dealership
• Be worth at least $4,000

Some older models may still be eligible as long as they have fewer than 150,000 miles on the odometer, but you’ll need to speak with your dealer or Capital One for more information.

Bank of America: Best car loan for those who prefer large banks

Starting APR
Loan terms
Loan amounts

Starting at $7,500

• Mobile-friendly application
• Don’t have to be a Bank of America customer to be eligible
• No loan documentation fees

• Only gives rate discounts to current members with high bank balances, and only if you apply directly through Bank of America
• Can’t buy from an independent dealer or private party
• A cheaper used car might be off the table, since you have to take out a loan for at least $7,500
• Can’t prequalify for an auto loan unless you have a Bank of America login

Why we like it

Bank of America could make sense for your next auto loan if you prefer banking at a big institution with a large physical footprint. And if you keep an eligible balance in your Bank of America and/or Merrill investment accounts, you could qualify for a rate discount on a new auto loan.

What to know

Auto financing from a big bank can have its perks. Compared to small, regional banks, large banks tend to have more of a digital presence. For example, Bank of America has an auto loan application that’s specifically designed for mobile. It also offers car loans nationwide.

Bank of America auto loans are open to anyone, but only Preferred Rewards members qualify for APR discounts. To be a Preferred Rewards member, you’ll need to have an eligible Bank of America account with a starting balance of $20,000. You also can’t get your Bank of America auto loan through a dealer if you want this discount — instead, you have to apply with Bank of America directly.

How to qualify

To get a Bank of America auto loan, the car you’re buying needs to:

• Be less than 10 years old
• Have less than 125,000 miles
• Be worth at least $6,000
• Be for personal use only
• Not be a commercial, heavy-duty truck or van
• Not have a salvage or branded title

CarMax: Best for an online experience

Starting APR
Loan terms
Loan amounts

• Can buy a car online and get it delivered to your house or pick it up at a store
• You have up to 10 days to decide whether you want to keep the car
• Comes with a 90-day, 4,000 mile limited warranty
• No minimum credit score requirement

• Can only use CarMax loans to buy CarMax cars
• Must live within a select market and within 60 miles of a store to qualify for home delivery
• Test drives aren’t allowed on home deliveries
• Car prices aren’t negotiable

Why we like it

Buying a car online can be scary, but CarMax’s 10-day guarantee might put you at ease. You have up to 10 days to return the car to CarMax if it’s not a good match. You’ll just have to bring it back in the same condition it was in when you bought it. Plus, every CarMax car comes with a 90-day, 4,000 mile warranty on your car’s major components.

What to know

CarMax has a used car website in addition to brick-and-mortar stores. You can buy a car online and as long as you live close enough, get your car delivered to your door. If you want to test drive it before buying, though, you’ll have to go to the dealer.

How to qualify

CarMax doesn’t have a minimum credit score requirement, but you may need to provide documents like proof of income and proof of residency.

You can also only get a CarMax loan if you’re buying from CarMax. CarMax does business in 41 states. There are no CarMax stores in:

• Alaska
• Arkansas
• District of Columbia
• Hawaii
• Montana
• North Dakota
• South Dakota
• Vermont
• West Virginia
• Wyoming

LightStream: Best quick car loan

User Ratings & Reviews

Ratings and reviews are from real consumers who have used the lending partner’s services.

User ratings:
User Ratings & Reviews

Ratings and reviews are from real consumers who have used the lending partner’s services.

Starting APR

6.49% (with autopay)

Loan terms

Loan Term Disclosure

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 $25,000 loan at 6.49% APR with a term of 3 years would result in 36 monthly payments of $766.11. © 2024 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.

Loan amounts

• Could get your loan the same day that you apply
• No restrictions on year, make, model or mileage
• Does not require a down payment
• Don’t need to have a specific vehicle in mind when you apply

• Must have good to excellent credit to qualify
• Can’t check rates without hurting your credit
• Higher rates than most traditional auto loans, since you aren’t using your car as collateral

Why we like it

As long as LightStream approves you and you complete the necessary steps by 2:30 p.m. Eastern time on a business day, you could get your money on the same day that you applied. Plus, LightStream doesn’t require appraisals and doesn’t have any vehicle restrictions. In short, the LightStream’s auto loan process is easier than traditional auto loan lenders.

What to know

LightStream auto loans are unsecured — that means it doesn’t use your car as collateral, as is the case on a traditional auto loan. However, LightStream’s rates are a little higher than others on this list. (In contrast, collateral loans typically come with cheaper rates because they’re less risky for the lender.)

How to qualify

LightStream doesn’t specify its exact credit score requirements, but you’ll need to have good to excellent credit to qualify. Most of the applicants that LightStream approves have the following in common:

• At least five years of on-time payments under a variety of accounts (e.g., credit cards or auto loans)
• Stable income and the ability to handle paying their current debt obligations
• Savings, whether in a bank account, investment account or retirement account

You’ll also need to have a valid Visa or Mastercard credit card to accept your loan, but only for verification purposes; LightStream will not charge your card.

Chase Bank: Best for dealerships in the Chase network

Starting APR
Loan terms
Loan amounts

Starting at $4,000

• Can check rates without hurting your credit
• Sends your loan approval directly to the dealer on your behalf
• Chase Private Client members get a 0.25% rate discount
• Doesn’t require a down payment

• Can only be used at partner dealerships
• Impossible to know what rates Chase offers without prequalifying
• Need to know what car you want to buy when applying

Why we like it

Chase Bank can make it easy to buy a car from a partner lender near you — just get prequalified online. It’ll then send your prequalification offer directly to the dealer, so you won’t have to mess with paperwork.

What to know

Unfortunately, you can’t use Chase at all car dealers — you’ll have to purchase within the Chase network. The good news is that Chase partners with thousands of dealers countrywide. But because it doesn’t advertise its rates, you’ll also need to prequalify to see what APRs it offers.

How to qualify

To get auto financing with Chase, you have to buy your car from a partner dealer. For the car to be eligible, it needs to:

• Be less than 10 years old (or less than five years old, if a Tesla)
• Have less than 120,000 miles
• Not be a commercial vehicle
• Not have a branded or salvaged title
• Not be used for ridesharing

Notably, you won’t need to be a current Chase customer to get an auto loan.

How does an auto loan work?

When you buy a car with an auto loan, you don’t pay the full price upfront.

Instead, a lender pays the seller (or dealer), and you repay the lender over time in monthly installments, including interest and fees.

You’re listed as the car’s owner, but the lender (called the lienholder) technically holds the title until the loan is paid off.

Most auto loans are secured, meaning the car is collateral. If you miss too many payments, the lender can repossess the vehicle.

Once you repay the loan in full, the lender releases the title and you will own the car outright.

On this page:

• Find your estimated monthly payment
• Car prices are rising, and loan amounts show it
• What affects your car loan interest rate?
• Can you get a car loan with bad credit?
• How to get better auto loan rates
• How to compare auto loans
• How we chose our picks for best auto loans
• Frequently asked questions

Compare auto loan rates from top lenders in minutes

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Avoid car-buying mistakes with our expert insights

“The most common mistake when buying a car is saying yes to a monthly payment. When you’re talking about money, do one thing at a time.

“First get an agreement on the price of the car you want, then the price for your trade-in — if you have one — and, finally, the rate of your car loan.

“If you agree to a monthly price first, the dealer will do everything to keep near that payment while increasing their bottom line. They could up your APR, up the length of your loan or try to slip in things like an extended warranty.”

— Jenn Jones, Senior staff writer and former car dealer

Car prices are rising, and loan amounts show it

Car prices have taken drivers on a ride — and loan amounts have followed. From pandemic-driven supply shortages to inflation and new tariffs, financing trends can offer surprising insight into where the auto market is headed.

Use the graph below to see how loan amounts have increased over time. Although you can’t predict exactly where car prices are headed, trends can help you compare your car price to the highs and lows.

From Q1 2021 to Q1 2025, new car loan amounts peaked above $41,000 and remain elevated. Used car loans, which surged during the used car boom, have started to moderate — offering potential value for buyers.

What this means for you

• Looking to buy soon? Comparing today’s trends to historical peaks can help you negotiate better — or wait if prices seem inflated.
• Refinancing? Understanding average loan sizes gives you leverage in rate shopping and loan terms.
• Used vs. new? As used car loans cool off, the total cost of ownership may now favor used vehicles again — but only in the right conditions.

Will tariffs affect car prices?
A LendingTree survey found that more than 3 in 4 (77%) Americans worry that tariffs will drive up the cost of owning a car. In fact, the majority of those who bought a car in 2025 did so earlier than they planned in order to get ahead of tariffs (81%).

What affects your car loan interest rate?

There are many factors that affect your car loan interest rate. Some are specific to you and are based on your credit. Others are general rules that apply to car loans overall.

General factors that affect all auto loans

• Loan terms: Longer loan terms are usually more expensive than shorter ones since you have more time to fall behind on payments.
• Loan amounts: Larger loans are a bigger risk for the lender, so rates are usually higher.
• Used vs. new vs. refinance: New cars usually have the lowest interest rates, followed by used cars, followed by auto refinance loans.
• Type of lender: Online car loans are competitive, but credit unions usually offer the lowest interest rates.
• Market conditions: The Fed rate doesn’t directly set loan rates but when the Fed rate is high, loans usually are, too.

Personal factors that affect your auto loan rate

• Debt-to-income ratio: Your debt-to-income ratio measures how much you owe compared to how much you make. Lenders usually consider 35% or less as “good.”
• Credit history: Everything on your credit report, from payment history to the types of credit you have, impacts your car loan rate.
• Employment history: Lenders look for stability, so expect a higher auto loan rate if you’re new to your job or switched jobs a few times in short succession.
• Down payment amount: Try to make a down payment of at least 20% for new cars, and 10% for used. A bigger down payment usually means a lower rate.
• Credit score: Your credit score has a huge impact on your car loan. This three-digit number signifies to lenders how likely you are to pay back what you borrow. The higher your score, the better your rate.

2025 auto loan rates by credit score

In the table below, you’ll find average rates for new and used car loans finalized through the LendingTree marketplace. Find your credit score tier and see what APRs you could expect.

Credit score range	Average new car APR	Average used car APR
Excellent (720+)	7.78%	8.41%
Good (690-719)	8.96%	10.06%
Fair (640-679)	12.15%	13.31%
Poor (639 or less)	15.67%	18.99%

Source: LendingTree user data on closed auto loans for Q1 2025.

Can you get a car loan with bad credit?

It is possible to get a car loan with bad credit. Every lender has its own credit score requirements — and some, like CarMax, don’t have a minimum at all.

If your score is below 661, you might want to explore bad credit car loans. A score of 661 is the cutoff between “prime” and “nonprime,” according to Experian.

You can also boost your approval odds by:

Adding a cosigner

• What it is: An auto loan cosigner is someone who’s legally vouching for you. By cosigning, that person is taking equal responsibility for the loan. Your cosigner should have at least good credit.
• How to do it: Include your cosigner on your application. Your cosigner will need to provide their financial details and may need to send documents. They’ll also have to take a hard credit hit and sign the loan contract.
• What’s the risk: Late payments hurt your cosigner’s credit as much as they do yours.

Adding a co-borrower

• What it is: A co-borrower is similar to a cosigner, but they’ll have joint ownership of the car — a cosigner does not.
• How to do it: Follow the same instructions as above.
• What’s the risk: Late payments hurt both of your scores and your co-borrower has equal rights to the car as you do.

Making a bigger down payment

• What it is: A bigger down payment means a smaller car loan. A smaller car loan is less risky for the lender. As such, the less risky you are, the more likely you are to be approved.
• How to do it: Follow the 20/4/10 rule for car buying and put down at least 20%. If you have more or less than that, put down as much as you can comfortably afford.
• What’s the risk: If you don’t budget correctly, you might wish you had that extra money later. Don’t deplete your emergency fund just to beef up your car down payment.

How to get better auto loan rates

According to a LendingTree study, improving your credit score from fair (580-669) to very good (740-799) could save you more than $2,316 on your auto loan over time. But improving your credit score isn’t the only way to get a better car loan rate. You could also:

• Get preapproved: Get a preapproved car loan and ask the dealer if they can do better. The dealer might be motivated to get you a cheaper rate in order to sell you a car.
• Negotiate: Unless you’re shopping at a dealership that doesn’t allow negotiation (like CarMax), you might as well try to get a little knocked off the purchase price — the worst the dealer can say is no.
• Use a loan comparison service: With LendingTree, you can compare auto loans from up to five lenders, and comparison is key to finding the lowest rates. Plus, nearly nine out of 10 LendingTree users get at least one auto loan offer.
• Ask about promotions and rebates: If you’re financing through your car’s manufacturer, you could qualify for a special promotional rate. Manufacturers also often offer rebates to current and former military and recent college grads.
• Don’t wait until you have no choice If you can, don’t wait until your current car is no longer running before shopping for a different car. When you’re in desperate need of transportation, you could be more likely to take any deal that comes your way — good or bad.
• Use a car-buying service: Your current bank or credit union might offer a car-buying service. You might qualify for a rate discount if you use it to buy your ride.
• Buy during the holidays: If you’re getting captive financing, shop around the holidays and the end of the year. Although they’re harder to find when inflation is high, this is the time of year where you’re most likely to find a 0% APR car deal.

Plan ahead for car insurance
“I’ve been a car insurance agent for 15 years and one of the most common mistakes I see car-buyers make is forgetting to budget for their new car insurance premium. Don’t wait until you’re at the dealer to get quotes. It’s hard to shop around in such a high-pressure environment. You also don’t want to get your heart set on a car, only to find out you can’t afford the insurance.”

— Carol Pope, Senior staff writer and former car insurance agent

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