Best Car Loan Rates Whether you’re looking to buy a new car or used one, it’s always best to shop around for the lowest interest rates. The interest rate on an auto loan can vary based on several factors, including credit score, the type of vehicle you purchase, and the length of the term.
Fortunately, there are lenders who offer a variety of flexible loan terms, making it easier to find the right one for you. We’ve rounded up the best options for you to consider today.
Capital One
Best Car Loan Rates If you’re in the market for a new or used car, Capital One Auto Finance might be a good option. It offers a variety of loan options for cars, light trucks, and minivans that meet qualifying criteria. It also provides refinancing options for existing auto loans.
Pre-qualify for a car loan online through Capital One’s Auto Navigator tool. This pre-qualification process doesn’t impact your credit score and allows you to see estimated terms without going to the dealership. After you pre-qualify, you can then take that offer to the dealer to speed up your car purchase process.
Best Car Loan Rates The auto loan process is convenient, easy, and free with Capital One. Using the bank’s online tools, you can find cars at participating dealers, pre-qualify for a loan and even present an offer to the dealer before heading out to the showroom.
Alternatively, you can go to your local Capital One branch to fill out an application. If you’re approved, you can shop around for a new or used car loan with the help of a loan officer.
Best Car Loan Rates If you have bad credit, a cosigner can make the process easier and save you money on your car loan. It’s important to note that the loan amount you receive will depend on your income and key credit characteristics, so getting a cosigner may not be a good idea for everyone.
It’s also a good idea to shop for rates before you commit to an auto loan. That way, you can be sure to get the best rate possible.
Best Car Loan Rates For example, if you have good credit and want to buy a vehicle that costs about $20,000, a loan with a 4.5% interest rate and a low down payment would have monthly payments of $457. You can use an auto loan calculator to find out your monthly payments and compare rates from different lenders.
You can also use Capital One to refinance an auto loan, which is a great option if you’re looking for a lower interest rate on a loan and saving money in the long run. However, you should be aware that you’ll need to submit a full application to get the best rates.
PenFed Credit Union
Best Car Loan Rates PenFed Credit Union, formally Pentagon Federal Credit Union, is an auto loan lender that offers some of the best car loan rates today. You can apply for a loan online, by phone or in a branch. Your creditworthiness is the key factor that determines your interest rate. Other factors include the vehicle being financed and market rates.
Penfed Credit Union offers new and used auto loans, as well as refinances for existing car loans. They also offer savings accounts and a variety of other financial services.
Best Car Loan Rates The credit union is open to everyone, regardless of military or government affiliation. Membership is free, though a $5 deposit is required to open a savings account. In addition, members receive a lower rate on their money market accounts than non-members.
In addition to the auto loan, PenFed also offers personal loans that range from $600 to $50,000 with terms up to 60 months. The fixed interest rate on these loans is as low as 4.99%, and there are no application or origination fees.
Best Car Loan Rates However, you must have a minimum credit score of 600 to qualify for this type of loan. It also requires that you have at least a year of W2s and a low debt-to-income ratio.
The company has about 50 branches across the United States and three military bases. Its mobile apps are available on iOS and Android and have solid ratings from users.
Best Car Loan Rates Getting preapproved for an auto loan at PenFed can save you time and headaches by giving you an estimate of how much you can afford to borrow. It also gives you a chance to review and negotiate your loan terms before committing to a specific lender.
It can also help you compare the costs of different vehicles, including new and used models. Getting preapproved before you shop for a new car can save you thousands of dollars on the purchase price, depending on how much you spend.
Best Car Loan Rates When shopping for a car, you should also consider the dealer’s financing options. Some dealers offer low-interest or cash-back incentives, which can cut the cost of your loan.
Bank of America
Best Car Loan Rates Bank of America offers a variety of auto loan products, including new, used, refinance, lease buyout and private party loans. It also offers an interest rate discount to Preferred Rewards members, who have a qualifying account relationship with the bank.
The bank has a network of financial centers, branches, and thousands of dealerships nationwide to help car buyers apply for an auto loan. Its online application is easy to use, and you can get a decision within 60 seconds. The bank also offers a mobile app that features Erica, a virtual financial assistant who can provide insights into your account.
Best Car Loan Rates In addition to auto financing, Bank of America provides many other banking services, such as mortgages and savings accounts. Clients can review their balances and transactions, deposit checks, and transfer money through their online and mobile banking apps.
A Bank of America personal checking account, for example, can be opened through a web browser and is compatible with Android, iPhone, iPad and other mobile operating systems. The bank also offers a mobile banking app for Windows Phone, Blackberry and Kindle Fire devices.
Best Car Loan Rates For borrowers who want to buy or refinance a used car, Bank of America is one of the few banks that offer an alternative to financing through a dealer. The bank offers rates from 5.49% to 6.29% for used vehicles, depending on credit history and loan amount.
If you want to finance a new car, Bank of America has low APRs and flexible loan terms, ranging from 48 months to 75 months. The bank’s minimum loan amount is $7,500 ($8,000 in Minnesota), and it offers a maximum loan-to-value ratio of 125%.
Best Car Loan Rates When you apply for a new or used car loan, Bank of America will do a credit check. This check can affect your interest rate, so make sure you have a good credit score before you submit an application.
The lender’s loan terms and APRs are competitive, and its website lists information on each type of auto loan it offers. However, you’ll need to discuss the loan details with a bank representative to ensure you’re getting the best terms for your specific needs.
U.S. Bank
Best Car Loan Rates When you’re shopping for a new car or used vehicle, you want to make sure you have a variety of financing options. This can help you find a loan that works best for your budget and personal situation.
With an extensive network of ATMs and physical locations, U.S. Bank is a good choice for people looking to save money on interest rates. It also offers a range of different deposit accounts and financial products, including certificates of deposits (CDs) and savings accounts.
Best Car Loan Rates It offers a wide range of car loan rates for people with excellent credit. However, the lowest rates are available only to those with a credit score of 800 or higher.
The bank also has a relatively high minimum loan amount of $5,000 for both new and used vehicles. This can be a problem for those trying to finance an inexpensive used vehicle.
Some consumers may also be turned off by the high early closure fee, which is equal to one percent of the original loan amount, with a minimum of $50 and a maximum of $100. This is in addition to standard fees like title registration and other fees that can come with car loans.
Consumers who use the bank’s AutoPay service can get a 0.5 percent rate discount. This is a small percentage, but it can add up to big savings over the life of your loan.
In addition, the bank offers an easy-to-use online pre-approval process that doesn’t require you to provide any information about your car. Once you’ve submitted your information, you can receive a decision within minutes during regular business hours.
US Bank also offers a free credit score through TransUnion CreditView that allows you to view your current score and see how it might change if you take certain actions. These include making timely payments, keeping balances low, and avoiding credit card debt.
The bank also offers a variety of other services, including auto loans for private sellers and refinancing existing car loans. Its rates are competitive, but it can be difficult to meet eligibility requirements for these types of loans.
