Top 10 Banks with the Lowest Used Car Loan Rates in the USA (2025 Update)

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Used car loan rate: Looking for the best banks offering used car loans in the USA? Compare top lenders like Bank of America, Wells Fargo, and Navy Federal Credit Union with their latest used car loan rates and terms. Discover how to qualify, apply, and get the lowest APRs even with average credit.

In this detailed guide, we list major banks, credit unions, and online lenders offering affordable used car financing. Learn how to choose the right lender, understand average APRs by credit score, and get expert tips to secure the best used car loan rate in 2025.

Table of Contents

List Of bank which provides Best used car loan rate in Lowest interest rate

1. Bank of America

Interest Rates: Competitive rates for used car loans.
Benefits: Offers a 30-day rate lock and up to a 0.50% interest rate discount for Preferred Rewards members.
Additional Info: No application fees and quick decision-making process.
Source: Bank of America Auto Loan Rates

2. Wells Fargo

Interest Rates: Rates vary based on creditworthiness and loan term.
Benefits: Provides both new and used car loans with flexible terms.
Additional Info: Offers a streamlined online application process.
Source: Wells Fargo Auto Loans

3. Citibank

Interest Rates: Competitive rates for used car financing.
Benefits: Provides both new and used car loans with flexible terms.
Additional Info: Offers a quick online application process.
Source: Citibank Auto Loans

4. Ally Financial

Interest Rates: Rates starting at 3.74% APR for used car loans.
Benefits: Offers a car buying service powered by TrueCar for discounted pricing.
Additional Info: Provides both new and used car loans with flexible terms.
Source: Ally Financial Auto Loans

5. Bank of Oklahoma

Interest Rates: As low as 5.79% APR for used car loans.
Benefits: Offers competitive rates for various loan terms.
Additional Info: Provides both new and used car loans with flexible terms.
Source: Bank of Oklahoma Auto Loan Rates

Credit Unions Offering Used Car Loans

1. Navy Federal Credit Union

Interest Rates: Starting at 4.79% APR for used car loans.
Benefits: Offers competitive rates for various loan terms.
Additional Info: Provides both new and used car loans with flexible terms.
Source: Navy Federal Auto Loan Rates

2. State Farm Federal Credit Union

Interest Rates: As low as 4.99% APR for used car loans.
Benefits: Offers competitive rates for various loan terms.
Additional Info: Provides both new and used car loans with flexible terms.
Source: State Farm FCU Auto Loan Rates

3. PenFed Credit Union

Interest Rates: Rates starting at 3.74% APR for used car loans.
Benefits: Offers a car buying service powered by TrueCar for discounted pricing.
Additional Info: Provides both new and used car loans with flexible terms.
Source: PenFed Auto Loans

4. Global Credit Union

Interest Rates: Starting at 6.00% APR for used car loans.
Benefits: Offers competitive rates for various loan terms.
Additional Info: Provides both new and used car loans with flexible terms.
Source: Global Credit Union Auto Loan Rates

Online Lenders Specializing in Used Car Loans

1. RoadLoans

Interest Rates: Rates vary based on creditworthiness.
Benefits: Specializes in subprime auto loans, making it accessible for those with less-than-perfect credit.
Additional Info: Operates online and partners with a network of dealerships.
Source: RoadLoans

2. LendingTree

Interest Rates: Rates starting at 3.50% APR for used car loans.
Benefits: Allows comparison of multiple lenders to find the best rate.
Additional Info: Provides a platform to compare auto loan offers from various lenders.
Source: LendingTree Auto Loans

Average Used Car Loan Rates by Credit Score (Q2 2025)

Credit Score Range	Average APR (Used Car Loan)
Superprime (781–850)	7.15%
Prime (661–780)	9.39%
Nonprime (601–660)	13.95%
Subprime (501–600)	18.90%
Deep Subprime (300–500)	21.58%

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Conclusion

Finding the right used car loan can save you thousands over the life of your vehicle. Major U.S. banks and credit unions like Bank of America, Wells Fargo, Navy Federal, and PenFed offer flexible loan terms and competitive interest rates tailored to different credit profiles. Whether you’re buying from a dealership or a private seller, comparing loan offers can help you secure the lowest APR and most favorable repayment options.

Before applying, check your credit score, gather necessary documents, and prequalify with multiple lenders to compare rates without affecting your credit. By doing a little research and choosing the right financial institution, you can drive away with confidence knowing you’ve secured one of the best used car loan rates in the USA.

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Frequently Asked Questions (FAQs)

Q: Which bank offers the lowest used car loan rates in the USA?

A: Banks like Bank of America, PenFed Credit Union, and Navy Federal Credit Union consistently offer some of the lowest used car loan rates, often starting around 4.5% APR for qualified borrowers.

Q: Can I get a used car loan with bad credit?

A: Yes, you can. Lenders such as RoadLoans, Capital One Auto Finance, and some local credit unions specialize in used car loans for borrowers with lower credit scores, though the interest rate may be higher.

Q: What is the average interest rate on a used car loan in 2025?

A: As of 2025, the average used car loan rate in the U.S. ranges from 7% to 14% APR, depending on your credit score, vehicle age, and loan term.

Q: Are used car loan rates higher than new car loan rates?

A: Generally, yes. Used car loans often have slightly higher interest rates because older vehicles carry more risk for lenders.

Q: Can I refinance my existing used car loan?

A: Absolutely. Many banks and credit unions allow refinancing to help lower your interest rate or monthly payment if your credit has improved.

Q: What documents do I need to apply for a used car loan?

A: You’ll typically need proof of income, valid ID, vehicle details, and sometimes proof of insurance. Online lenders may also request your Social Security number for verification.

Q: Is it better to get a used car loan from a bank or a credit union?

A: Credit unions generally offer lower rates and more flexible terms, but banks may offer faster approval and broader availability. It’s best to compare both before deciding.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We do not promote or endorse any specific loan app. Always verify that a loan app is partnered with an RBI-registered NBFC or bank before applying. Be cautious of fraudulent applications that may misuse your personal data, charge hidden fees, or engage in unethical debt collection practices. Before borrowing, read the loan agreement carefully, compare interest rates, and ensure you can repay the loan within the agreed tenure. Avoid downloading loan apps from unofficial sources or unknown websites. In case of any suspicious activity or harassment by a loan app, report it immediately to the Reserve Bank of India or the National Cyber Crime Reporting Portal (https://cybercrime.gov.in/). Borrow responsibly — only take a loan if it is truly necessary and you are confident in your ability to repay on time.