Buying a new car is one of the largest purchases you'll make. We've compared every major direct lender, bank, credit union, and marketplace to find who offers the best combination of rate, terms, and approval speed for new vehicle purchases.
Dealers mark up financing by 1–3%. Always get pre-approved by a direct lender before visiting a dealership. This gives you a rate to beat and removes the dealer's most profitable lever.
0% APR deals from manufacturers (Toyota, Ford, GM) can beat any bank rate — but only on specific models and usually require excellent credit. Check the manufacturer's site first.
Put at least 20% down on a new car. New vehicles depreciate 15–20% in year one. Without adequate down payment, you risk being immediately upside down on the loan if you need to sell.
Dealer financing (through the dealer's finance office) is convenient but expensive — dealers typically mark up the rate by 1–3% above what the lender offers. Bank or credit union financing means you apply directly and the dealer doesn't touch the rate. Always get pre-approved externally first, then see if the dealer can beat it.
Sometimes. Manufacturers offer 0% APR to move inventory, but it's usually on specific models and often competing with a cash rebate offer. Calculate both scenarios: 0% financing vs taking the cash rebate and financing at market rates. For most people, the cash rebate plus bank financing comes out ahead.
Most lenders will finance up to 100–120% of the vehicle's MSRP. However, borrowing more than the car's value means you're immediately underwater if you need to sell or the car is totalled. A 20% down payment is the conventional wisdom, though some lenders accept less.