Best Car Loan Rates of 2023
PenFed Credit Union
For a limited time, earn a $350 cash bonus when you purchase through the PenFed Car Buying Service with a PenFed auto loan.*
PenFed Credit Union provides some of the best rates available. It also has flexible loan amounts and a number of auto loan options for members. Even though membership is required, which is a disadvantage for some, PenFed makes the requirements to join fairly straightforward.
Offers new, used, and refinance loans
Loan amounts from $500 to $100,000
Provides rate discounts for using its car buying service
Borrow up to 125% on new and used vehicles
High minimum loan amount for longer terms
Excellent credit history required for lowest rates
Membership in the credit union is required
Also known as Pentagon Federal Credit Union, PenFed has been providing financial services since its start in 1935, when it originally served members of the government and military only. These days, it's America's second-largest credit union, with 2.8 million members worldwide, and anyone is welcome to join.
Our top pick for auto loan rates, PenFed Credit Union offers some of the lowest rates available. At PenFed, rates for 36-month refinance loans start as low as 4.89%.Deep discounts are available for members who use the credit union's car buying service, with rates starting as low as 4.89% annual percentage rate (APR) for a new car and 5.54% APR for a used vehicle.
You'll have to become a member of the credit union, but the requirements to join are fairly easy to meet. Car loans from PenFed start as low as $500 and move up to $150,000, a wide range that beats out many of the lenders we surveyed.
The downside to PenFed is that the most flexible loan amounts are only offered on the shortest terms. For
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