There are numerous reasons why someone might be looking to buy a car. Some people are simply looking for a vehicle that is going to get them from place to place lately. Other people might be Automotive enthusiasts who are looking for ways to collect Vehicles. Regardless of the reason why, most people are not going to be able to afford to buy a car in cash. As a result, everyone is going to find themselves looking for an auto loan.
There are several stereotypes about the car buying process. Looking for an auto loan is not a positive one. At the same time, there have been numerous advances in the industry that have made it easier for people to find an auto loan at a good rate. With this in mind, there are several companies that have risen to the surface when it comes to providing a convenient, affordable auto loan. Therefore, where should people be looking if they are in need of an auto loan? It is time to take a closer look at some of the top companies out there today.
Best Auto Loan rates
- Lending Club
- Capital One
- Consumers Credit Union
- Innovative Funding Services
- OpenRoad Lending
- OneMain Financial
1. Lending Club
While Lending Club might not be a household name, this is one of the top places to go for an auto loan. Lending Club is a direct lending marketplace that helps match loan providers with borrowers who are looking for a loan. In this manner, this loan option is one of the top places to compare numerous available rates. Of course, nobody wants to pay more for a car loan then they must. One of the ways to do this is to compare current offers on the market and take the best one. To date, this loan provider has already had more than 1.5 million customers use its services. Furthermore, those who use this a service to find a loan will save, on average, $80 per month on their car payment. This can add up to a lot of money over the life of a loan. As a result, they are usually better for refinancing current loans than for taking out a new one.
This is a relatively straightforward service to use. Once someone enters details about themselves and their vehicles, it is possible to receive offers from different lenders. Then, using a computer, people can send up applications to different possible providers. One of the main advantages of using the service is that there are no origination fees. On the other hand, individuals need to have a credit score of at least 510 for they can apply to use this service.
Some of the other conditions that people will need to follow in order to be able to use this service include:
- The car must be 10 years old or less
- The loan must have been originated at least one month ago or longer
- There are at least 2 years of remaining payments
- The amount of the loan must range between $5,000 and $55,000
Those who meet these conditions might want to consider checking out this possible service.
2. Capital One
Most people know Capital One from their credit card commercials. At the same time, they are also one of the top auto loan options on the market. They have a service called Auto Navigator that helps customers find the right car loan for them. Using this service, the application process is relatively straightforward. Even though this is a great tool to use, not all dealers are going to participate through the service provided by Capital One. Therefore, it might not be possible to earn pre-qualification status for all cars.
Furthermore, this is only a great place to find the lowest rates possible for those who have a credit score of at least 740 or higher. Therefore, those who have a solid credit score have a great chance of finding the best rate for a car loan here. In order to use this service, people must have a minimum credit score of 500. Furthermore, the minimum loan amount taken out through this service is $4,000.
In addition to taking out a new loan, it is also possible to refinance an auto loan through Capital One. As long as the vehicle is not more than 7 years old and there are no delinquent payments, it is relatively easy to set up a refinanced auto loans through this service. It is important to keep in mind the requirements for the Capital One refinancing option is a bit different than the requirements for taking out a new auto loan. Those who are looking for a simple option to compare multiple loan rates might want to consider checking out Capital One.
While many people have not heard of LightStream, they have probably heard of their parent company, Sun Trust Bank. LightStream is a great choice for anyone who is looking for car loans at a low APR. Similar to other loan options, their best rates are only available to those who have solid credit scores. Furthermore, individuals who enable the auto-pay feature will also earn a discount on their car loans.
There are numerous factors that are going to impact the size of the auto loan that people can get through this service. Some of the factors that will play a role in the cost of a loan include:
- The reason why people are taking out the loan
- The size of the loan itself
- The overall terms of the loan
- The credit of the customer applying for a loan
- The payment method
For this under, it is possible for people to take out loans ranging anywhere from $5,000 to $100,000. The repayment period of a loan through LightStream can range anywhere from 2 to 7 years.
One of the major advantages of using the services that their loans can be used to buy just got any car instead of cars that are only coming from select dealers. When someone is ready to buy a car, the loan will be placed directly in someone’s account. Then, the loan can be used to buy a car immediately. Finally, people can simply pay back a loan over an extended period of time. The process of getting a loan through LightStream is relatively straightforward.
4. Consumers Credit Union
Another auto loan option to note is called Consumers Credit Union. Consumers Credit Union is based in Illinois. When it comes to auto loans, they are exceptional. In addition to auto loans, they also provide a wide range of other loan options as well. It’s similar to other lenders, their best rates are only available to those with a solid credit score. Furthermore, those who are willing to pay back a loan in a shorter amount of time will also receive lower interest rates.
Even though their best rates are reserved for people with strong credit scores, nearly anyone can apply for a loan. Furthermore, those who are members of Consumers Credit Union will be eligible for a discounted interest rate on their loan when they automate e their payments with Consumers Credit Union. There are minimum income amounts as well as minimums on loan amounts when it comes to applying for an auto loan. Those who are willing to open an account with Consumers Credit Union may be eligible for different benefits and could receive a reduced interest rate.
Finally, the customer service team at Consumers Credit Union is strong. Many people are confused when they are applying for an auto loan. The customer service representatives at Consumers Credit Union are willing to work with people every step of the way to make sure they understand the terms of their loans before taking one out.
Many people know about LendingTree from their commercials related to home loans and mortgages. LendingTree also provides auto loans as well. For those who might not know exactly how the service works, LendingTree is an online network. The network is used to connect to borrowers and lenders together. First, those who are looking for a loan on the service will need to fill out an online application. Then, the application will be used to outline the type of loan for which someone is looking. After filling out a number of other demographic details, the applicant will be connected with several possibilities.
In this manner, one of the main advantages of the services that individuals will be able to compare multiple loan offers immediately. Instead of people going looking for auto loans, the lenders are going to contact potential borrowers with various options. Then, individuals will be able to negotiate with these lenders to get the lowest rate possible. Of course, the lowest rates are always going to go to individuals with the best credit score.
Speaking of credit scores, another major advantage of using the service is that LendingTree will provide borrowers with information about their credit score and how they can improve it. As a result, those who use the service to improve their credit score might be able to get auto loans at a better rate. Keep in mind that LendingTree is not a lender in and of itself. Therefore, the exact terms of the auto loan are going to vary depending on the type of lender that someone ultimately chooses for their auto loan.
6. Innovative Funding Services
Innovative Funding Services is another example of an online marketplace that will connect borrowers with lenders. This service covers a variety of options ranging from refinancing loans to lease purchases and even commercial businesses who are looking for options for purchasing entire fleets of vehicles. Furthermore, the service is geared towards borrowers with an average credit score that might not be able to get a solid car loan elsewhere.
Loans from Innovative Funding Services can range anywhere from $5,000 to $100,000. Of course, the interest rates are going to vary as well. Be better someone’s credit score is, the lower the loan rate is going to be. In order for people to apply for loans through the service, they need to have a minimum credit score of at least 500 and earn at least $1,500 per month.
The biggest advantage of using Innovative Funding Services is that they are going to walk individuals through every step of the vehicle ownership process. With other lenders, drivers might have to go elsewhere in order to find help completing the transfer of vehicle ownership title. With Innovative Funding Services, they are going to take care of all of this in one place. As a result, this is very similar to one-stop shopping for car loans.
Many people have heard about Carvana and their car vending machines. Instead of a loan provider, Carvana is actually a dealer for used cars. On the other hand, it does finance the cars that it sells itself. Therefore, it is possible to purchase a car through Carvana and either finance through Carvana or through another dealer.
While this might sound like a limited option, there are literally thousands of cars that are featured on their website. Therefore, anyone who is looking for a used car should at least consider going with this service. With thousands of cars from which to choose, is easy to take a look at multiple vehicles that fall under multiple categories. Then, people can find the car that is right for them.
One of the major benefits of financing a used car through this service is that there are no minimum credit score requirements. There are minimum income requirements, so it is important for people to keep these in mind. Their interest rates range widely, so it is important to shop around and see what else is available. In some cases, they might be willing to offer a lower rate than other auto loan providers.
MyAutoloan is a local marketplace that people can look for a car loan. Similar to other locations, it is possible to use that service to compare multiple options from various companies. Then, borrowers are able to figure out which option is best for them. It is possible to compare up to four offers at once through the service. Furthermore, this site can be used either for new or used cars. It is possible to obtain a new loan through his service as well as refinance an old one. Sometimes, they offer auto loan rates that are in the twos for interest rates.
Before receiving offers, there is a short questionnaire that has to be filled out. That way, they can recommend loan providers that are right for the borrower. Once someone makes a selection, it is possible to be approved in a single day. In this manner, this is one of the fastest turnaround options for those who are looking for an auto loan. There is a minimum credit score requirement of 500 and borrowers cannot have any open bankruptcy filings. Even though the minimum credit score is low, in order to qualify for the best interest rates, individuals are going to need to have top-notch credit scores.
Finally, it is important to note that the service does not charge any fees on their applications. This is another great way that people can save money as they are going to the auto loan process. Keep in mind that fees tacked onto loans from other providers might be negotiable. People simply need to ask.
9. OpenRoad Lending
While many people might not have heard about OpenRoad Lending, this could be a great option for certain borrowers. OpenRoad Lending focuses on refinancing auto loans. In this manner, this is a great place for people to go for those who have existing auto loans and are looking to obtain a lower rate. By refinancing auto loans to a lower interest rate, it is possible to save a lot of money over the life of the loan.
Of note, there are several restrictions when it comes to vehicles that can be refinanced to the service. These include:
- First, the vehicle cannot be any more than eight years old.
- Second, the vehicle also cannot have any more than 140,000 miles on it.
- Finally, the maximum amount of the loan cannot exceed more than 120 percent of the actual value of the vehicle.
Furthermore, those who are looking for a loan from OpenRoad Lending need to have a minimum credit score of 500 and make at least $1,500 per month in order to take out a loan. On the other hand, those who meet these criteria are sure to have a good experience. This company has one of the highest customer satisfaction scores and states that most people who refinance their auto loans through this company will save more than $100 per month.
Finally, OpenRoad Lending has a number of educational resources that help people learn everything they could ever want to know about auto loans. Those who are willing to learn more about auto loans are going to possess more information when they go to the negotiating table to meet with a lender. Nobody should ever have to pay more for a loan than they must. OpenRoad Lending is always willing to support its customers.
10. OneMain Financial
Finally, OneMain Financial is another option for auto loans. This company has been in business for more than 100 years and has a tremendous amount of experience when it comes to both car purchase loans as well as refinancing loans for cars. It is possible to secure both loan services with collateral. They do not charge any prepayment fees and allow everyone to access their funds quickly. In some cases, the approval process takes place on the same day.
Of note, OneMain Financial is geared for people with bad credit. Those who are unable to get a loan from other loan providers should consider going with this option. At the same time, because their loans are geared toward individuals who have poor credit scores, the interest rates are going to be higher than other lenders. This could lead to a higher total cost. Furthermore, they also do not provide large auto loans; however, they do provide a quick financing process.
For those with low credit scores, it might be worth taking a look at OneMain Financial. They provide a variety of auto loans that have all types of terms. Therefore, there are options for borrowers to tailor the conditions of their loans to meet their needs. Then, it might be worth taking a look at loans from this provider and comparing them to some of the other options that are on the market. This can help everyone save money on their next auto loan.
Factors To Consider When Looking for a Car Loan
When someone is looking to take out a loan for a car, there are a few points to keep in mind. These include:
- The Interest Rate: The interest rate is arguably the most important part of a loan. The interest rate is going to determine how much extra someone is going to be paying on top of the actual price of the car. The goal is to get the interest rate to be as low as possible. In some cases, people might be able to get an auto loan for an interest rate that is under 3 percent. In other cases, the interest rate might be 10 percent or more. It is important to shop around and look at multiple loan options to keep the interest rate as long as possible.
- The Down Payment: Another factor to consider is the down payment. The down payment is the amount of money that is due upfront. In general, the more money someone is going to put down, they lower the interest rate is going to be. Furthermore, the more money someone puts down to the lower the monthly payment is going to be.
- The Origination Fee: Also called the doc fee, the origination fee is an extra fee that is tacked on simply for drawing up the paperwork. Often, this is negotiable. Those who are taking out an auto loan to try to get the origination fee waived. This could save them a significant amount of money.
Anyone who is looking for an auto loan has to keep these points in mind. They are going to play a major role in how much money someone pays for a car.
Find the Right Auto Loan Provider
These are just a few of the most important points that everyone should keep in mind if they are looking for an auto loan. The process of buying a car does not have to be that complicated. As long as everyone understands how auto loans work and how they can find multiple offers, it is possible to shop around and compare offers. Then, borrowers are able to drive offers against each other to get the lowest rates possible. Drivers do not have to get an auto loan from the dealer. There are other options to choose from as well. By understanding all of this information going into the auto buying process, individuals are able to make the best decisions for their needs.