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What is a good interest rate for a car loan?

As of 2026, a good auto loan rate is under 6% for new cars and under 8% for used cars. Borrowers with excellent credit (720+) typically qualify for rates under 5%. Rates above 10% indicate subprime credit or a used vehicle with high mileage.

Should I put money down on a car loan?

Yes. A down payment of 10–20% reduces your loan amount, lowers your monthly payment, and prevents being "underwater" on the loan (owing more than the car is worth). Cars depreciate quickly — a 20% down payment helps protect against negative equity.

Is a 72-month or 84-month car loan a bad idea?

Long loan terms (72–84 months) lower your monthly payment but significantly increase total interest paid. They also increase the risk of being underwater on the loan as the car depreciates. If you need a 72+ month term to afford the payment, consider a less expensive vehicle.

Can I refinance my auto loan to get a lower rate?

Yes. If your credit score has improved since you got your original loan, or if rates have dropped, refinancing can save you significant money. AutoPay and Capital One Auto Navigator both offer auto refinancing. Most lenders require the vehicle to be under 10 years old with under 125,000 miles.