Capital One auto loan rates remain below 3%

Car on top of calculator

Some large banks have quietly raised their auto loan rates this season, but Capital One is holding steady with 2.99% APR financing for five years.

By keeping rates under 3%, the country’s 12th-largest bank is offering one of the best deals around.

And it's available to borrowers nationwide.

These rates are much lower than the 4.37% APR average for 60-month new-car loans, according to our national survey of lenders.

If you borrow $20,000 at the national average rate for five years, you'd pay about $372 a month.

Compare that to borrowing at Capital One's five-year rate. You'd pay about $359 a month.

The more affordable financing from Capital One would save you $13 a month. That may seem like spare change, but it adds up to a lot — $780 over the life of the loan.

The McLean, Va.-based bank also offers exceptionally low used-car loan rates. The bank offers preowned auto financing with three-year terms starting at 3.99%, well below the 5.01% APR national average, according to our survey.

Search our database of the best auto loan rates from more lenders in your area to see if you can find a better deal.

After that, you can use our auto loan calculator to help you plan your own auto budget.

Apply online with Capital One, and you can receive a loan answer in as little as 60 seconds. There is no application fee.

Borrowers can finance from $7,500 up to $40,000 for new vehicles and between $7,500 and $30,000 for used ones. The car or truck must be less than seven years old and have no more than 70,000 miles on the odometer. The vehicle must also be purchased from an approved franchise dealership.

If you haven’t picked out a vehicle yet, that’s OK. You can use Capital One’s Blank Check program to get preapproved for a loan. Once you've selected the car or truck you like at a dealership, you can use the Blank Check to purchase the auto.

Having an idea of how much you’d pay at a bank means you can negotiate more effectively with a car dealer’s finance manager.

Either the dealer has to beat the loan terms, or you can go with Capital One for auto financing. One way or the other, you're getting a good deal.

If you’re shopping for a new auto, use our 5 simple steps to the best deal on a new car or truck. It can help you shop smarter and with confidence.

If you're in the market for a preowned auto, follow our 10 smart moves for buying a used car to help you avoid the costly pitfalls.

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