Finding the best car loans can be difficult. There is a sea of providers, and getting stuck with a bad loan can mean years of debt. The difference between a good interest rate and a bad interest rate could eventually grow to thousands of dollars.
It is important to compare your options when making any important financial decision. This list will direct you to a number of reputable car loan providers to help you decide where to apply. We will also explain the application process and tips on how to get the lowest car loan interest rate.
If you want to start comparing car loan rates, visit AutoApprove.com.
In this article:
Best Car Loans: Top 10 Providers
There is no one best car loan provider for everyone. While most loan seekers will want to find a provider with the lowest annual interest rate (APR), the interest rate you get depends on your creditworthiness as well as many other factors. Different financial institutions may also offer different minimum and maximum loan amounts.
Finding the best provider also depends on what type of loan you need: purchase loans or refinancing loans. The table below provides some information on some of the best car loan providers for different types of borrowers. Some of the providers listed below manage loans directly to clients, while others are brokers who match clients with loans. Both can be good places to start your search for the best car loans.
|Loan amount||Lowest APR offered||Broker or Administrator|
|610||Indefinite||$ 500 to $ 100,000||1.39%||Administrator|
|Automatic approval||580||PLN 18,000||7,500 to 150,000 USD $||1.90%||Broker|
|RateGenius||550||Indefinite||$ 12,000 to $ 100,000 $ 1||1.99%||Broker|
|Automatic payment||630||Indefinite||$ 2,500 to $ 100,000||1.99%||Broker|
|my self-loan||575||$ 18,000 for refinancing,
$ 21,000 on loan on purchase
|$ 5,000 minimum||2.39%||Broker|
|Tresl||500||Indefinite||$ 5,000 to $ 100,000||2.49%||Broker|
|Bank of America||Indefinite||Indefinite||$ 7,500 minimum||2.69%||Administrator|
|620||$ 24,000 $ 2||No minimum||3.34%||Administrator|
|A stream of light||Indefinite||Indefinite||$ 5,000 to $ 100,000||3.49%||Administrator|
|PLN 18,000||It depends on the lender||It depends on the lender||Broker|
Based on the information available, we believe that some of the best car loans can be found with the following companies:
- PenFed Credit Union: Lowest APR
- Automatic approval: best for refinancing
- Auto Credit Express: Best for Bad Credit
PenFed Credit Union initially began to serve the military and their families, but its services have since been available to the general public. While not accredited by the Better Business Bureau (BBB), the PenFed credit union is rated A + BBB.
PenFed Credit Union loan requirements are higher than many other lenders, but offer some of the lowest interest rates in the industry.
PenFed has a moderate reputation for customer feedback on the Internet, although most of the complaints made by the BBB relate to PenFed Home Loans. Moreover, given the size of PenFed, the number of customer complaints is relatively low.
|PenFed Credit Union Pros||Disadvantages of the PenFed savings and credit union|
|Offers extremely low interest rates||Moderate customer service reputation|
|A + grade from BBB||It does not grant loans to drivers with poor credit|
|Customer reports describe a slow application process|
Auto Approve only offers credit refinancing, not a purchase credit. However, it does it well. While drivers with poor credit may not be eligible for an Auto Approve loan, those who do may find interest rates as low as 1.9 percent.
Auto Approve is BBB accredited with an A + rating and an excellent rating of 5.0 out of 5.0 stars from customer reviews based on 500+ reviews. Since even a one percent interest rate cut can save you hundreds of dollars, there’s no reason not to see what refinancing deals can be found on Auto Approve.
|Automatic approval of advantages||Disadvantages of automatic approval|
|Low interest rates||It only offers loan refinancing, not loan purchases|
|Strong customer service reputation||It does not offer loans to drivers with very bad credit or no credit|
|Easy and fast application process|
Auto Credit Express specializes in loans for customers with poor creditworthiness. The company even has representatives who can help loan applicants build their credit score by paying off the loan.
Customer experiences with Auto Credit Express vary, but few lenders are willing to work with customers who are particularly bad credit. If you need a vehicle and are having difficulty getting a loan due to poor credit, Auto Credit Express can help. Even drivers going through bankruptcy or a foreclosure may be able to get a car loan from Auto Credit Express.
|Auto Credit Express Pros||Disadvantages of Auto Credit Express|
|Offers financing for clients with or without bad credit||He currently has a BBB alert regarding licensing issues|
|It connects customers with loans based on a credit profile||Poor customer feedback|
|Offers special rates for military members|
Types of car loans
Generally, car loans can be divided into two categories: purchase loans and refinancing loans. A purchase loan is a loan taken to buy a new or used vehicle. Some lenders may work through dealers to provide loans for purchase, while others may offer loans for private purchases as well.
There are also buy-out loans in which drivers decide to buy the vehicle after leasing it for a specified period of time. .
A refinancing loan is the second loan taken to pay off an existing car loan. The reason drivers may choose to refinance the loan is because the new loan offers a lower interest rate, meaning they will pay a lower total cost.
A refinancing loan may be of interest to people whose creditworthiness or income has changed recently. Or, if you think your original loan has particularly bad terms, refinancing your loan with a better lender can save you money.
How to apply for a car loan?
Many lenders allow their borrowers to apply for a car loan completely online. In some cases, borrowers may receive financing on the same day. Typically, to apply for a car loan, you’ll need to provide the following information:
- Personal information such as name, address and age
- Social security number
- Information on annual gross income
- Vehicle information such as Vehicle Identification Number (VIN), age and mileage
You may also be required to present or send copies of the following documents:
- Driving license
When you apply for a loan, some companies may offer you the option of a signer, another person to take responsibility if you fail to repay the loan. Cosigner may be required for people with extremely poor credit.
How do you find the best car loan rates?
When you buy the best car loans, you will get access to the lowest rates if you have good creditworthiness and financial history. The more money you have, the lower the interest rate you will be offered. Customers with high credit ratings, multiple assets (such as a house), and high gross annual income will qualify for the best rates.
If you are trying to improve your credit score, please do the following:
- Pay your bills on time
- Pay your credit card bills in full every month
- Don’t take out a lot of big loans
- Check your credit report and question any inaccuracies
- Pay off as much of your existing debt as possible
It can take years to build up your credit score, and many people may need a car loan sooner than they can rebuild a low loan. In the short term, you can find good loan terms by comparing offers from multiple lenders and having someone with strong credit sign your loan.
To start comparing the best car loans, visit AutoApprove.com.