Best Auto Loan Rates for 2020
Finding the best auto loan rate when buying a new or used car is crucial when financing your new wheels. Depending on your car loan total and term, the interest rate can save or cost you hundreds, perhaps thousands, of dollars over the life of the loan.
Consumers Credit Union – Best Auto Loan Rates for 2020
Credit unions generally have better reputations than banks because they can give you better interest rates. Everyone who has an account at a credit union is part owner, so institutions like Consumers Credit Union (CCU) can give their members incredible deals instead of paying a few top bankers enormous salaries.
INTEREST RATES:As low as 2.99%
CREDIT REQUIREMENTS:640 credit score minimum
Many credit unions have membership qualifications, such as being part of a military branch, an alumnus from a specific school, or resident of a particular state. However, CCU requires you to pay a fee of $5 and keep at least that much in a savings account. In return, you can get auto loan rates as low as 2.99%. These loans include fixed rates, mechanical repair coverage, and a simple interest method that allows you to pay less over the length of the loan.
The potential downside to CCU loans is that not everyone will get approval. You should have a credit score of at least 640, and CCU requires a hard credit check with each application, so it’s important to apply only if you’re serious about buying a car.
Oportun – Best Auto Loan Rates for 2020
Having less-than-perfect credit shouldn’t keep you from getting the car you need. While you shouldn’t expect the low rates that those with great credit have, you can avoid overpaying with Oportun. Through this online lender, you can get a loan for a car that you purchase from an auto dealer or a private party. Since buying through a private party can be cheaper, this can save you big bucks over dealerships. If you have a great car and you want a better loan to match, you can use Oportun’s refinancing options.
LOAN AMOUNTS:Range from $7,500 to $40,000
CREDIT REQUIREMENTS:500 credit score minimum with $2,000 monthly income
The minimum credit score for this lender is 500, which is significantly lower than many others. You also should have an income of at least $2,000 per month to apply. Loan amounts can range from $7,500 to $40,000, so you can get the car you want. Best of all, Oportun does not require a hard credit check with your application. So, looking around won’t hurt the score you’re trying to fix. The application takes only a few minutes, is completely online, and results in an instant decision. If you live in one of the 33 states that have Oportun, this is an excellent choice.
CapitalOne – Best Auto Loan Rates for 2020
Understandably, some people aren’t as comfortable using lesser-known or niche lenders for something as crucial as an auto loan. If you want the backing of a major financial institution with a household name, CapitalOne may be your best bet. If you’re in the market for a new or used car, you can apply for preapproval through the bank’s Auto Navigator program. This early step does not affect your credit since it is a soft pull. The pre-approval letter is then valid at more than 12,000 dealers throughout the nation, each of which you can find on CapitalOne’s website. Just present the note at the dealership and begin the full application process once you find the perfect ride.
APPLICATION:Get preapproved online
NO HARD PULL:Preapproval does not impact your credit score; however, following up with a full application requires a hard pull.
If you already have a car that you love and want better loan terms you can use CapitalOne’s refinance program. Prequalifying online takes a few minutes and does not show on your credit score. The pre-qualification letter will help you know if it’s worth submitting a full application. With a 4.8-of-5-star rating, the chances are that you’ll like the program.
OpenRoad Lending – Best Auto Loan Rates for 2020
While getting a new set of wheels is exciting, there’s something to be said for sticking with a reliable ride. However, if your credit improved, you paid off debt, or you got a raise since you first financed your auto loan, you may be paying too much. OpenRoad Lending allows drivers like you to refinance existing loans and save an average of $100 per month on their car payments. The application process is simple and entirely online. Within an hour of applying, you can receive your decision with complete details about the loan.
INTEREST RATES:Range from 1.9% to $24.9%
CREDIT REQUIREMENTS:500 credit score minimum with $1,500 monthly income
If you run into any trouble with your application, OpenRoad Lending’s customer service team can help. Perhaps that’s why 98 percent of customers say that they are satisfied with their loans. Before applying, you should know that it is a hard credit pull, so this service is only for people who are serious about refinancing. This lender requires a credit score of at least 500 and a monthly income of $1,500 or more. The higher each of these numbers is, the better your rates will be. OpenRoad Lending offers rates between 1.9% and 24.9%.
It seems like every industry is cutting out go-betweens these days, and the car industry is no exception. If you would rather skip the dealership and the bank altogether, Carvana is the site for you. Without ever leaving your home, you can apply for an auto loan, choose your car, and get it delivered. If you want to trade your old car in, you can do so while you’re at it. Carvana will give you an offer and pick it up from your home.
PROCESS:Shop rates online with no hard pull on your credit
CREDIT REQUIREMENTS:No minimum credit score; minimum annual income of $10,000
Best of all, these loans aren’t just easy to get; they are great deals for all kinds of borrowers. There is no minimum credit score, so anyone who makes at least $10,000 per year can apply. Carvana finds offers from several sources without a hard pull on your credit. This allows you to shop rates without hurting your score and rest easy knowing that you got the best possible deal. Plus, without pushy salespeople, you can ensure that you get the car you want. If you’re not sure how much of a loan you can afford, you can use Carvana’s Auto Loan Calculator.
If you are tossing around the idea of getting a new car but not sure if it will fit in your budget, stop by LendingTree first. Without affecting your credit, you can shop from a variety of lenders. You can use this feature for refinancing, new cars, used cars, or lease buyouts. Just enter details such as your desired loan type, down payment, financial status, and the vehicle you want. Then Lending Tree will match you with lenders.
SERVICE:Matches consumers with lenders
APPLICATION:No hard pull on credit until applying with a lender
You can compare the offers to find the best rates and terms for your life. If you decide to apply, the lender will require a full application. Lending Tree can also help with a loan payment calculator, free credit score finder, and other tools.
Although Lending Club made a name for itself with peer-to-peer personal loans, the online lender now offers auto loan refinancing. If you’re looking for ways to lower your monthly bills, Lending Club can help by showing you your refinancing options. First, complete the initial application and get instant offers. This step is a soft pull on your credit that won’t change your score. Then, you can compare the details of each proposal to see which best fits your needs. Whether you need to lower your interest rate, increase the length of your loan, or both, you can find the right lender.
INTEREST RATES:6.95% and up
CREDIT REQUIREMENTS:510 credit score minimum
Once you decide on an offer, you can finish the official application. The process is entirely online and easy. Although Lending Club is a broker, you won’t pay an origination fee for your loan. Finally, sit back and enjoy a smaller monthly payment. Rates range start at 6.95%, and you must have a credit score of at least 510 to get prequalified. Whether you’re sure you want to refinance or just seeing what’s out there, Lending Club is a great option.
A subsidiary of SunTrust Bank, Lighstream offers some of the best auto loan rates to buyers through a number of different loan offerings. LightStream stands out from the competition because of its lightning-fast turnaround time in approving qualified clients for loans. The catch is that the majority of the clients that it approves for same-day funding must have excellent credit in order to be financed. Assuming your credit is up to par, the benefits that LightStream can offer you make it well worth all of those years of financial discipline. Lighstream’s loan offerings range in value from $5,000 to $100,000 with APR rates varying based on the length of your loan. Additionally, if you can prove that one of LightStream’s competitors is offering a better rate, LightStream will improve its initial offering with a rate that is 0.10% lower than the rate being offered by the competitor. With no restrictions on the basis of car year, make or model and enticing options such as auto lease buyout, LightStream’s auto loan options are some of the best you’ll find.
With over 100 years of experience servicing clients, OneMain is among the most tenured of the auto loan providers reviewed here. Starting at 18% in a best-case scenario, its APR rates are certainly not for the faint of heart nor shallow of pocket. OneMain also doesn’t shell out a ton of cash to its loanees, providing a maximum loan of just $20,000 to qualified customers. Despite this, OneMain users can take advantage of a number of benefits, including same-day financing, no hard minimums for applicant credit scores, and the option to apply for a secured credit loan with collateral, possibly opening the doors to a larger-than-expected loan. Additionally, loanees that get cold feet after agreeing to an auto loan can cancel their agreement within seven days of putting pen to paper as long as they return all funds and sign a cancellation agreement. With 1,700 offices in 44 states, OneMain is widely available and perhaps the best place to get a car loan for buyers looking for a bit more leniency from their lending institution.
Bank of America – Best Auto Loan Rates for 2020
With the power of its name recognition alone, Bank of America instills trust in most buyers. With offices in all 50 states, Bank of America has one of the widest reaches of any of the lenders compared here. Apart from its wide-ranging presence, its loan offerings are also nothing to sneeze at. After completing a one-minute loan application online, customers can find out the amount that they would pay monthly as well as the Bank of America auto loan rates that apply to them, given the length of their loan. Customers with strong credit scores may be eligible for rates as low as 3.19% for new cars, 3.39% for used cars and 3.99% for refinancing. Additionally, existing BofA clients are eligible for a 0.5% discount on the APR rate applied to their loan, while other loanees can take advantage of no prepayment penalties if they decide to pay off their loan early.
ClearLane – Best Auto Loan Rates for 2020
Powered by Ally Bank, ClearLane offers prospective buyers an interesting option for some of the best auto loan offerings. One thing that makes ClearLane different from most other lenders reviewed here is that it is an intermediary. ClearLane does not personally offer buyers loans, but rather serves as a marketplace where users can find the loans that work best for their circumstances. ClearLane’s specific focus is on auto lease buyouts, and it does a pretty impressive job of paying balloon fees — what users pay at the end of their lease if they decide to buy the car — as well as gap insurance, which is paying the difference between what your car is worth and the outstanding loan value on that car if it gets totaled in a wreck. Additional perks provided by ClearLane include no hard pulls on your credit history in order to pre-qualify and availability in 49 of the 50 states (Nevada excluded).
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