When buying a new car, van, or truck whether, for personal or business purposes, it is always ideal to find the best auto loan rates in town. There are actually a lot of choices out there, but of the so many options, we found some of them, and we’ll be sharing it with you today.
Let’s admit it, the idea of buying something new especially when it comes to cars can really bring so much excitement in us. So much that we would find ourselves spending time scanning through different options — brands, model, color, features, etc. We compare one model to another, go test drives, and imagine yourself driving the car.
It’s really an amazing feeling.
However, here comes the reality — the cost. It’s probably safe to say that for some of us, the cost of a car or van or truck could be less exciting.
But just before you feel bad and all, here’s the thing — auto loans do exist, and there are a lot of companies offering them. What you should do is, as you compare car models, you should also make time to compare the best auto loan rates. Do not commit to some people’s mistake of just signing up on whatever loan companies that come first. As a borrower, it is your responsibility to ensure that you deal only with the best rates. After all, this will be beneficial to you unless you want to drown in debt, right?
Loaning money to buy a car is not a bad thing at all. In fact, there are a lot of people who are in auto loans.
In an article published by Forbes, it says that in 2017 alone, “the average amount borrowed for a new car was $31,099, averaging a $515 monthly payment while $21,375 was taken out for a used car, working out at $398 a month.”
Furthermore, as stated in the same article, “a Finder analysis of the Federal Reserve Bank of New York data, Americans accumulated $568.6 billion in auto loans by the end of 2017.”
You see, auto loans are very in-demand.
As we have said, borrowing money is not bad, not paying the loan makes it grueling because you will really suffer from consequences. So, the key is – make sure that you only transact with a loan company that offers the best auto loan rates according to your preference, to what you can.
Anyway, as we have mentioned, we are going to share with you a few of the many lending companies that offer the best auto loan rates in the country.
Before we move on to our list, here’s a very insightful video created by Honest Finance. This gives you an idea of how to get a car loan today. Hit the play button below to watch the whole thing:
AT A GLANCE: BEST AUTO LOAN RATES COMPANIES
|FINANCIAL INSTITUTION||ANNUAL PERCENTAGE RATE (APR)||LOANABLE AMOUNT||REQUIREMENTS|
|Oportun||20.00 – 67.00% (estimate)||$5,000 up to $35,000||500 credit score requirement, plus at least $2,000 monthly income|
|Consumers Credit Union||2.69% – 21.99% (with automatic payment discount)||$250 up to $500,000||640 credit score, $6,000 annual gross income, $5 membership fee, and $5 a month minimum savings account balance|
|OpenRoad Lending||2.9% – 24.9%||$10,000 up to $100,000||500 credit score, at least $1,500 monthly income|
|Capital One||Purchase: 3.59% for those with excellent credit Refinance: 4.07% – 24.99%||Purchase: $4,000 Refinance: $7,500 up to $50,000||Purchase: 500 credit score, at least $1,500 monthly income Refinance: 540 credit score, at least $1,500 monthly income|
|Lending Tree||Starts at 3.09%||varies depending on the type of auto loan||no minimum credit score requirement|
|Lending Club||3.99% to 24.99%||$5,000 up to $55,000||must be a U.S. citizen, permanent resident, or valid long-term visa who is 18 years of age or older with a verifiable bank account|
|Carvana||3.90% – 27.90%||amount varies depending on your car choice||no credit score requirement, at least $10,000 annual income|
LIST OF BEST AUTO LOAN RATES COMPANIES
If you are ready to know what’s on our list, well, then, let’s begin —
Oportun is ideal for those with not-so-good to bad credit standing. The company is an online lender that allows you to loan for a car that you bought from an auto dealer or a private party. Yes, they do cater to private party purchased cars, which is actually way cheaper than those from dealers.
WHO IS OPORTUN:
As mentioned, Oportun is an online lending company that is “passionate about providing inclusive, affordable, financial services that empower our customers to build a better future“.
The company, which was established in 2005, has worked really hard ever since to ensure they get to serve about 100 million people in the United States. These people are those who have been “shut out of the financial mainstream because they don’t have a credit score or have a limited credit history.”
Unlike other lenders, Oportun believes that “by lending money to hardworking, low-to-moderate-income individuals,” they get to “help our customers move forward in their lives, demonstrate their creditworthiness, and establish the credit history they need to access new opportunities.”
Just this year, Oportun prides itself on being listed in the top 10 most innovative finance companies by Fast Company. Apart from that, their other products, particularly personal loans were also names as best consumer lending products by FinTech Breakthrough in 2019, while in 2018, they were tagged as one of Time Magazine’s Genius Companies.
Oportun is certified by the U.S. Department of Treasury.
ANNUAL PERCENTAGE RATE: 20.00 – 67.00% (estimate)
LOANABLE AMOUNTS: Oportun approved auto loans amounting from $5,000 up to $35,000.
REQUIREMENTS: To be able to avail an auto loan from Oportun, you have to meet its 500 credit score requirement, plus at least $2,000 monthly income.
2. CONSUMERS CREDIT UNION
Consumers Credit Union is actually considered as the best auto lending company in all aspects, but particularly on providing lower interest rates compared to banks. People with an existing account at a credit union is a part-owner, thus, institutions like Consumers Credit Union or CCU can offer members amazing deals.
WHO IS CONSUMERS CREDIT UNION:
Consumers Credit Union has been around since 1930. Based in Lake County, in Illinois, the company has been guided by the same principles ever since — these are “long term stability, dedication to providing the finest financial services, committed investment in its members“.
The company is an open-to-the-public, not-for-profit institution. It focuses on no less but their customers. Consumers Credit Union aims to provide service that is customized and unique to each and every customer, backed by offerings that address the customer’s banking needs.
Apart from auto loans, Consumers Credit Union offers other products and services to its members. This includes checking, savings, debit and credit cards, consumer loans, money market accounts, as well as certificates of deposit, and a variety of mortgage products.
ANNUAL PERCENTAGE RATE: 2.69% – 21.99% (with automatic payment discount)
LOANABLE AMOUNT: Consumers Credit Union provides auto loans amounting from $250 up to $500,000.
REQUIREMENTS: With Consumers Credit Union, you have to have at least 640 credit score, $6,000 annual gross income. Also, it requires a $5 membership fee, and a $5 per month minimum savings account balance.
3. OPENROAD LENDING
OpenRoad Lending is another popular name when it comes to the best auto loan rates. What makes it a standout though is the fact that it allows eligible applicants to refinance existing loans. This way the applicant gets to save an average of $100 monthly on their vehicle payments.
OpenRoad Lending provides a very simple process that is done entirely online. It’s too easy that even the decision of your loan application can be received in less than an hour.
WHO IS OPENROAD LENDING:
OpenRoad Lending is an award-winning auto finance company that is located in the Dallas Fort Worth area. The company was established in 2009 and has since become well-known in the auto loan industry.
Since its inception, OpenRoad has already “helped hundreds of thousands of customers save over $100/month on average by refinancing their auto loan“.
Regardless of your credit record, OpenRoad creates a customized or personalized loan option for you. Rest-assured that the ones handling your loans are a team of auto refinancing experts. More so, these people are there to help you achieve your refinance goals.
Over time, OpenRoad Lending has earned different recognitions like being tagged by Inc. Magazine as the 37th fastest-growing private company in the U.S., as well as being Dallas/Fort Worth Best and Brightest Company. Furthermore, OpenRoad Lending has also been recognized by the Dallas Business Journal as the Best Place to Work.
With OpenRoad Lending, you are assured of the following:
- Lower Rates and Amazing Savings
- A+ Accredited by the BBB and a trusted member of the American Financial Services Association
- Quick loan decisions, flexible financing options and cutting edge technology for a great experience
- There’s no obligation to apply, no hidden costs and no application fees
- The highest level of customer satisfaction and award-winning customer service
ANNUAL PERCENTAGE RATE: 2.9% – 24.9%
LOANABLE AMOUNT: OpenRoad Lending provides loans to as much as $10,000 up to $100,000.
REQUIREMENTS: With at least 500 credit score, and at least $1,500 monthly income, you can already apply for an auto loan with OpenRoad Lending.
4. CAPITAL ONE
CapitalOne is ideal for borrowers who prefer a major financial institution with a household name.
The bank provides auto loans for customers who prefer an either new or used car. Through its Auto Navigator program, customers can apply for preapproval. Do not worry as this step will not affect your credit at all.
The pre-approval letter, however, is valid at over 12,000 dealers all over the country, which you can all find on the CapitalOne’s website. If you are ready, all you have to do is present the letter to the dealership, and start off the entire application process.
WHO IS CAPITAL ONE:
CapitalOne is one of the well-known financial institutions in the country. Its mission is “to help our customers succeed by bringing ingenuity, simplicity, and humanity to banking“.
Founded by Chairman and Chief Executive Officer Richard Fairbank, the company believes that “innovation is powered by perspective and that teamwork and respect for each other lead to superior results”.
Capital One is best known for providing a wide range of products, which include credit cards, auto loans, banking, and savings accounts.
The bank, which is headquartered in McLean, Virginia currently has 755 branches including 30 café style locations and 2,000 ATMs across the country.
ANNUAL PERCENTAGE RATE: Purchase – As low as 3.59% for those with excellent credit; Refinance – 4.07% – 24.99%
LOANABLE AMOUNT: CapitalOne lends for as low as $4,000 for purchase, while fore refinancing, they refinance loans starting from $7,500 up to $50,000.
REQUIREMENTS: For purchase, CapitalOne requires at least 500 credit score, while 540 minimum credit score for refinancing. Meanwhile, for both purchasing and refinancing, the company requires at least $1,500 monthly income depending on credit.
5. LENDING TREE
The Lending tree is ideal for customers who are keen on their budget. Lending Tree lets you shop from a wide selection of lenders without having to worry about your credit being affected.
By simply providing details like your desired loan type, down payment, financial status, and the vehicle you want, Lending Tree will then match you with appropriate lenders.
WHO IS LENDING TREE:
Lending Tree is an online marketplace for different financial borrowing needs such as credit cards, personal loans, small business loans, auto loans, and many more.
Lending Tree serves as an avenue wherein borrowers can compare rates and more from various financial institutions.
The company was founded by Doug Lebda and has been around since 1997. Since its inception, Lending Tree has brought rates online, which in turn makes banks compete.
To date, the company prides itself on having served over 50 billion worth of loans, more than 30 billion worth of loans saved, and over 100 million customers served.
ANNUAL PERCENTAGE RATE: Starts at 3.09%
LOANABLE AMOUNT: Lending Tree’s loan amount varies depending on the type of auto loan (whether it be for a new or used car), and also the loan terms.
REQUIREMENTS: According to Lending Tree, while “there’s no minimum credit score qualifying for an auto loan, your credit score will be a factor in how much you can borrow and the terms you’ll be eligible for.”
6. LENDING CLUB
Lending Club is the best for shopping around refinancing loans, which include auto loans. This is ideal for borrowers who are looking for ways to lower down their monthly bills.
To be able to shop around, all you need to do is complete the initial application process and eventually receive instant offers. Just like the previous ones, this step won’t harm your credit score at all.
Once you have offers, you may not compare them from one another, and choose the one that fits best according to your needs and preferences.
Through Lending Clun, you can find a lender that would either provide you with a lower interest rate or increased length of your loan.
WHO IS LENDING CLUB:
Lending Club has been around since 2007. The company has since brought borrowers and investors together to help transform the “way people access to credit”. Since its inception, Lending Club has already helped millions of people particularly enabling them to take control of their debt, grow their small businesses, or invest in the future.
Furthermore, Lending Club is committed to four particular things. These are:
- Reinvent credit and investing
- Deliver world-class experiences
- Do what’s right
- Level the playing field
Throughout the company’s first decade in the industry, it has already earned notable recognitions such as one of Fast Company’s 50 Most Innovative Companies, one of 2914 Best Places to Work in the Bay Area, and CBNC Disruptor 50 Class of 2014.
Lending Club is headquartered in San Francisco, California.
ANNUAL PERCENTAGE RATE: 3.99% to 24.99%
LOANABLE AMOUNT: Loanable amount with Lending Club is between $5,000 and $55,000.
REQUIREMENTS: To qualify, you must be a U.S. citizen, permanent resident, or valid long-term visa who is 18 years of age or older with a verifiable bank account.
The last, but definitely not the least on our list is Carvana. This one’s ideal for those who would rather skip both the dealership and the bank.
With Carvana, you can apply for an auto loan, choose the vehicle you desire, and have it delivered at your doorstep. Yes, you read it right, you can do all that right at the comfort of your home.
More so, you may also opt to trade your old car without having to leave home. Basically, what Carvana does is give you an offer, and they will pick it up from your home. Very convenient, right?
WHO IS CARVANA:
Based in Tempe, Arizona, Carvana has been reported to be the fastest-growing used car dealer in the United States in 2018.
This online used-car retailer and technology business has earned popularity for its multi-story Car Vending Machines.
Carvana provides direct financing for the cars the company sells. This allows shoppers to browse the company’s online inventory, choose what they like, and then complete transactions without having to leave their homes.
As of this writing, Carvana takes pride in its wide selection of over 10,000 cars. By the way, once you have chosen your preferred unit, you may also choose your preferred financing terms, and complete the rest of the application process online.
ANNUAL PERCENTAGE RATE: 3.90% – 27.90%
LOANABLE AMOUNT: The amount varies depending on your car choice from the company’s wide selection of vehicles.
REQUIREMENTS: The company does not require any credit score. It, however, requires buyers/borrowers to at least have a $10,000 income annually.
FINAL THOUGHTS ON BEST AUTO LOAN RATES
As you can see, there are a lot of financial institutions that offer the best auto loan rates. In fact, too many to choose from it can get overwhelming. However, the key to picking the one for you will depend on your ability to pay, as well as your personal preference or terms.
Have you found the best auto loan rate for you yet?