Current Top 5 Lowest Auto Loan Rates: The auto market in 2026 has become a tale of two sectors: traditional bank financing and aggressive manufacturer incentives. While the national average for a 60-month new car loan sits at 7.01%, savvy borrowers can still find rates under 4% by looking in the right places.
Whether you are buying a 2026 EV or a reliable used truck, here are the top 5 lowest auto loan rates currently available.
🏆 The Top 5 Lowest Auto Loan Rates (Feb 2026)
1. Manufacturer 0% APR Deals (Best for New Cars)
- Current Rate: 0% APR
- Lenders: Kia, Hyundai, Toyota, Subaru, and Tesla.
- The Details: Manufacturers are using 0% financing as their primary tool to move 2025 and 2026 inventory. Key models currently offering 0% APR for up to 60 months include the Kia EV9, Hyundai Ioniq 5, Subaru Outback, and Toyota Tundra. These rates are typically reserved for “Superprime” borrowers (780+ scores).
2. PenFed Credit Union (Best for General Public)
- Current Rate: As low as 3.39% APR
- The Details: To get the 3.39% rate, you must use the PenFed Car Buying Service. If you choose to finance a vehicle outside of their service, rates for new cars start at 4.19%. PenFed remains a favorite in 2026 because they allow financing up to 125% of the vehicle’s value.
3. Navy Federal Credit Union (Best for Military/Families)
- Current Rate: As low as 3.89% APR
- The Details: Navy Federal continues to offer the most consistent low rates for the military community. Their 3.89% offer applies to terms of 36 months or less. For the popular 60-month term, rates are still incredibly competitive at 4.29%.
4. Consumers Credit Union (Best for “Fair” Credit)
- Current Rate: As low as 4.74% APR
- The Details: Consumers Credit Union is the go-to for borrowers who may not have perfect credit but want to stay under the 5% mark. They offer great transparency and an easy digital application process that caters to the 2026 “mobile-first” shopper.
5. Bank of America (Best Large Bank)
- Current Rate: As low as 5.34% APR
- The Details: If you are a Bank of America Preferred Rewards member, you can shave another 0.25% to 0.50% off this rate. This brings a major national bank’s rate down to roughly 4.84%, making it the best option for those who prefer the security of a “Big Four” institution.
📊 2026 Rate Comparison by Credit Score
If you don’t qualify for the “as low as” rates above, here is what the average borrower is seeing this week:
| Credit Tier | Score Range | New Car Avg APR | Used Car Avg APR |
| Superprime | 781–850 | 5.18% | 6.82% |
| Prime | 661–780 | 6.70% | 9.06% |
| Near Prime | 601–660 | 9.83% | 13.74% |
| Subprime | 501–600 | 13.22% | 18.99% |
❓ Q&A: Your Auto Loan Questions Answered
Q1: Can I get a 0% APR loan with a 650 credit score? A: Highly unlikely. Manufacturer 0% deals almost always require a score of 740 or higher. With a 650 score, your best bet is to target Credit Unions like Consumers Credit Union, where you can likely secure a rate between 8% and 10%.
Q2: Are used car rates always higher than new car rates? A: Generally, yes. In 2026, used car rates are about 3% to 5% higher than new car rates. This is because used cars have more volatile resale values, which increases the lender’s risk.
Q3: Does the Federal Reserve rate affect my current car loan? A: No. Most auto loans are fixed-rate. Once you sign your contract, your rate is locked for the life of the loan. Federal Reserve hikes only affect new loans or refinancing applications.
Q4: Is a 72-month or 84-month loan a good idea? A: While it lowers your monthly payment, it significantly increases your interest rate. In 2026, many lenders add a 1.5% premium to any loan over 60 months. You also risk being “underwater” (owing more than the car is worth) for much longer.
