LendingTree Finds Car Buyers Could Save More Than $3,000 by Shopping Around for Auto Loans, With Potential Savings Up 30% in One Year

The gap between average lowest and highest APR offers widened even as both rates declined from July 2025 to July 2026.

Rhea-AI Summary

LendingTree (TREE) published an auto loan study finding borrowers could save an average of $3,064 by comparing financing offers. Estimated savings reflect choosing the lowest annual percentage rate (APR) rather than the highest across offers on its platform in July 2026.

Potential savings increased 30.4% from July 2025. Average lowest and highest APRs were 11.91% and 15.05%, respectively, with estimated monthly payments of $541 and $586 over an average offered term of 68.1 months. Near-prime borrowers, with credit scores of 620 to 659, had the largest potential savings at $4,259 over their average offered term. These are estimated borrowing-cost differences, not realized savings.

News Explained

The study adds a same-loan comparison: on a $26,706 loan, a subprime borrower at the average lowest APR for that credit band would pay an estimated $40,979, or $9,035 more than a super-prime borrower at that band’s average lowest APR; this is an estimated cost difference, not realized savings.

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CHARLOTTE, N.C., Oct. 19, 2026 /PRNewswire/ -- Car buyers have more to gain from shopping around for financing than they did a year ago. A new LendingTree study finds that car buyers could save an average of $3,064 over the life of an auto loan by comparing offers from multiple lenders, with potential savings increasing 30.4% over the past year.

Key Findings:

• Auto loan shoppers could save an average of $3,064 by choosing the offer with the lowest APR rather than the highest. The average lowest APR was 11.91%, 3.14 percentage points below the average highest APR of 15.05%.
• The average monthly payment was $541 with the average lowest APR and $586 with the average highest APR. That $45 monthly difference amounts to $3,064 over the average offered term of 68.1 months.
• Potential savings increased by $715, or 30.4%, from July 2025 to July 2026. The difference between the average lowest and highest APRs widened by 0.69 percentage points, even as both declined — the average lowest APR by 1.56 percentage points and the average highest APR by 0.87 percentage points.
• Near-prime borrowers could save the most by shopping around. Their average lowest and highest APRs differed by 4.57 percentage points, translating to estimated savings of $4,259 over their average offered term.
• Credit score differences can also substantially affect borrowing costs. On the same $26,706 loan, a subprime borrower with a credit score below 620 who received the average lowest APR offered to their credit band would pay an estimated $40,979 — $9,035 more than a super-prime borrower receiving their credit band's average lowest APR.

"Shopping around for auto financing has always been important, but our latest findings show there's even more at stake for consumers today," said Nelson Forrest, General Manager of Auto Loans at LendingTree. "The difference between the highest and lowest APR offers translated to more than $3,000 in potential savings on average, roughly 30% more than a year ago. With vehicle affordability still a challenge for many households, taking the time to compare financing options before making a purchase can make a meaningful difference in what consumers ultimately pay."

To view the full report, visit: https://www.lendingtree.com/auto/shopping-auto-loans-study/

Methodology

LendingTree researchers analyzed auto loan offers on the LendingTree platform in July 2026. For comparison, researchers analyzed offers from July 2025 using the same approach.

For each borrower, researchers identified the lowest and highest APR offered and calculated the average loan amount across the offers received. These borrower-level results were then averaged overall and within four credit bands: subprime (below 620), near-prime (620 to 659), prime (660 to 719) and super-prime (720 or higher).

Monthly payments were estimated using the applicable loan amount, APR and term. Savings were calculated as the difference between estimated payments using the highest and lowest APRs, multiplied by the applicable loan term. Credit band cost comparisons applied each band's average APRs and term to the same national average loan amount of $26,706. Values were rounded for display.

About LendingTree, Inc.

LendingTree, Inc. is the parent of LendingTree, LLC and several companies owned by LendingTree, LLC (collectively, "LendingTree" or the "Company").

LendingTree is one of the nation's largest, most experienced online financial platforms, created to give consumers the power to win financially. LendingTree provides customers with access to the best offers on loans, credit cards, insurance and more through its network of approximately 770 financial partners. Since its founding, LendingTree has helped millions of customers obtain financing, save money, and improve their financial and credit health in their personal journeys. With a portfolio of innovative products and tools and personalized financial recommendations, LendingTree helps customers achieve everyday financial wins.

LendingTree, Inc. is headquartered in Charlotte, NC. For more information, please visit www.lendingtree.com.

Media Contact:
press@lendingtree.com

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SOURCE LendingTree, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did LendingTree calculate potential auto loan savings?

Researchers calculated potential savings from the difference between estimated payments at each borrower's highest and lowest offered APRs, multiplied by the applicable loan term. They analyzed LendingTree platform offers from July 2026 and used the same approach for July 2025. Values were rounded for display.

What did LendingTree find about auto loan costs across credit scores?

On the same $26,706 loan, a subprime borrower receiving their credit band's average lowest APR would pay an estimated $40,979, or $9,035 more than a super-prime borrower receiving their band's average lowest APR. Subprime scores were below 620; super-prime scores were 720 or higher. The comparison used each band's average APR and term.