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Auto loans are available from banks, dealerships, and online lenders.Comparing rates from multiple lenders is the easiest way to get a good deal.Interest rates depend on your credit score, the vehicle you?re financing, and other factors.

There?s a lot to consider when taking out a loan to purchase or refinance a car. Even if it seems like a good time to buy a vehicle, it?s easy to forget some steps when moving through the loan application process. Our team has assembled this guide to auto loans to help you better understand the car financing world so that you can secure the best auto loan rates.

How Does an Auto Loan Work"
Most auto loans are secured loans, meaning they?re backed by real property, known as collateral. Car loans, whether they?re used to purchase or refinance new or used vehicles, are some of the most common loans taken out from financial institutions. Note that auto loans typically have far lower interest rates than credit cards or personal loans.

Annual percentage rates (APRs), which include the loan interest rate plus any added fees, can sometimes be as low as 3%. These rock-bottom rates are only available to those with excellent credit, so most drivers will receive higher APRs. The average auto loan rate is currently 4.33% for new cars and 8.62% for used cars, according to Experian?s State of the Automotive Finance Market Q2 2022 ...