Home » Loans » Car » New Car Loan
What it is
A new car loan is a loan provided by a commercial financing company for the purchase of a brand new vehicle. These loans can be provided by banking institutions or other financial lending companies. These loans usually are often fixed five- to seven-year terms depending on the amount borrowed. The amount borrowed will vary based upon the down payment or trade-in amount.
Interest rates for new car loans vary depending on promotional offers presented by dealerships and the associated lending companies. Brand new vehicles of the latest model will have higher interest rates and brand new vehicles of last year's model or those sold late in the season will have more competitive interest rates. New vehicle interest rates are generally between seven and 10 percent, while sales interest rates can be as low as zero percent, at least for an introductory term.
Who it's for
Most people cannot afford to pay outright for a vehicle that can cost anywhere from $15,000 to $100,000. That's why new car loans are very popular. An individual can decide how much he/she can afford month to month and pay a pre-arranged amount monthly to a commercial lender. At the end of the term, that individual will own the vehicle.
What you need to do to apply
In order to be approved for a new car loan, a person must demonstrate that he/she is able to pay the arranged amounts each month and provide credit information so that a lender can determine the risk of lending to him/her. In order to apply, a person must go to a dealership and then arrange financing through the dealership or his/her own financial institution.
Apply for a New Car Loan
Apply for your vehicle loan with Capital One Auto Finance
Popular Credit Cards
Recommended Credit Card
The The Platinum Card® from American Express is one of the most popular cards available. Your Credit Advisor recommends it as our favorite in this category.
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- Earn 25,000 Membership Rewards? bonus points when you spend $1,000 in your first 3 months of Card membership - redeemable for one domestic round-trip Coach-Class airline ticket!
- Airport Club Access: Access airport lounges around the world, compliments of Airport Club Access Program.
- 24-Hour Concierge Service: From buying gifts to making reservations, the Platinum Card? Concierge is at your service so you can spend your energy doing what you want.
- FINE HOTELS & RESORTS: Receive special amenities and comforts when staying at more than 600 boutique, resort and luxury hotels around the world.
- Apply online now at American Express's Web site.
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| Intro APR |
Regular APR |
Credit Needed |
Annual Fee |
| No Introductory Rate Available |
No APR |
Very Good |
$450 |
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- 0% Intro APR on balance transfers for 18 months and 0% Intro APR on purchases for 12 months. After that, the APR will be 11.99%-19.99% based upon your creditworthiness. This APR will vary with the market based on the Prime Rate*
- Extra Cash from Citi: enjoy discounts on gift cards, travel, merchandise and more
- Citi® Identity Theft Solutions
- Secure, free online account management
- No annual fee*
- Read our review or apply online now at Citibank's Web site.
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| Intro APR |
Regular APR |
Credit Needed |
Annual Fee |
| 0% Intro APR* |
11.99% - 19.99%* (Variable) |
Very Good |
$0* |
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- Earn up to 25,000 Starpoints (R) - enough for up to 6 free nights at a category 1 or 2 hotel
- Use Starpoints(R) for free nights and upgrades at participating Starwood hotels and resorts in 95 countries including Sheraton, W Hotels, Westin and more with no blackout dates
- No annual fee for the first year and $45 thereafter
- Transfer Starpoints(R) - almost always on a 1:1 basis - to the frequent flyer programs of over 30 major airlines
- Earn one Starpoint(R) for every dollar you spend and double Starpoints(R) at participating Starwood properties and retail partners
- Express Approval. Get a decision in less than 60 seconds
- Smarter Travel Editor's Choice Award for Best Travel Awards Card for Domestic Use
- Read our review or apply online now at American Express's Web site.
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| Intro APR |
Regular APR |
Credit Needed |
Annual Fee |
| 2.90% on Purchases and Balance Transfers for 6 months |
15.24% variable |
Very Good |
$45** |
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- No Annual Membership Fee
- Low variable rate of 7.25%, 10.25%, or 13.25% (Prime + 4.00%, Prime + 7.00%, or Prime + 10.00%) as of 4/1/10 based on the creditworthiness. This APR will vary with the market based on the Prime Rate. (If there is an interest charge, the charge will be no less than $1.00).
- Low Introductory APR on balance transfers of 1.99% for your first 6 billing cycles, this rate will not change during the introductory period. Applies to balance transfers processed within three months of your account open date. After that, your APR will be the same as your assigned purchase rate, based on your creditworthiness.
- Online Access to Credit Card Account Information
- Apply online now at the card issuer's Web site.
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| Intro APR |
Regular APR |
Credit Needed |
Annual Fee |
| 1.99% APR for 6 Months |
7.25%, 10.25%, or 13.25%* |
None |
$0 |
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- Earn 10,000 Membership Rewards(R) bonus points when you spend $500 in 3 months - redeemable for a $100 gift card!
- The Membership Rewards program - Turn your everyday purchases into Membership Rewards points, and then redeem them for an amazing collection of travel, shopping, dining and entertainment rewards.
- Gold Card Events - exclusive access to tickets for select concerts, shows, major sporting events, and more in cities nationwide.
- Express Approval. Get a decision in less than 60 seconds.
- Read our review or apply online now at American Express's Web site.
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| Intro APR |
Regular APR |
Credit Needed |
Annual Fee |
| No Introductory Rate Available |
No APR |
Good |
$125 |
