How do you know that you're getting the best auto loan available? Looking for auto loans can be overwhelming, especially if you haven't done it before. You want to get approved for a loan that you'll be able to pay back in a reasonable amount of time with a reasonable interest rate.
Some companies will let you compare loan offers from multiple different creditors. Others will give you custom loan information based on your credit score and the vehicle you're purchasing.
I've taken a look at some of the top auto loan companies on the market so you know where to start when shopping for an auto loan.
Top 5: Auto Loan Companies Review
Product Image & Rating (Out Of 10)
1-800-Auto-Yes is a company that makes it easy to get approved for a loan. In less than five minutes, you can find out what loans you qualify for before you've even visited the dealer. It lets you streamline the process of car buying and draw up a contract with the dealership much faster.
You have your option of these application methods:
Customer specialists are available 24/7 to explain the loan process to you and walk you through it. More than a million vehicle buyers have gotten financing through this system. Approval can be received within the same day that you apply.
Not everyone will qualify for a loan. If you don't have a steady income or stable work history, you're unlikely to receive credit approval. However, you can reach out again in the future.
The service is present in all 50 states in the US. If you have a stable employment history and monthly income, you're very likely to be approved for a loan regardless of your credit score. The company provides loan options for individuals with nearly any credit score, so it's a good choice if your credit isn't great.
The company also offers some military programs. If you or your spouse is a member of the US military, you might qualify for additional benefits and incentives with your application.
Lightstream was originally a division of SunTrust Bank. Since SunTrust has merged with BB&T, the company is now a division of the merged entity Truist.
Loans with this company are geared toward individuals with good credit scores. The loan process tends to be simple and straightforward. In addition to funding auto purchases, the same system can be used to fund a home remodel, debt consolidation, wedding, medical expenses, swimming pool installation, timeshare, or boat purchase.
Loans are fee-free and low-interest. The total amount can range from $5,000 to $100,000. In addition, you have a guarantee that the company will beat the interest rates of any competing lenders so you always get the lowest possible interest rate.
On the website, you'll find a straightforward chart that shows you the interest range for different loan amounts over different periods of time.
All loans come with a fixed rate that's free of fees or prepayment penalties. You will have to pay extra for the invoicing option should you choose that rather than the AutoPay option. You can't use the loan proceeds to refinance any loans that you've already taken out with the company.
Applications can be filed online. Your response will be received sometime within business hours of the same day or following day. Once you're approved and sent your loan agreement, you can e-sign it and receive funds as soon as the same day.
To be approved for a loan with this company, you'll need the following:
Lending Club offers personal loans at sums of up to $40,000 dollars. The company has lent more than 50 billion dollars to over three million customers. In addition to personal loans for auto buying or other projects, you can also look at small business and auto refinancing loans.
The online application process for a loan takes just minutes. You'll be shown a chart with your options for interest rates and monthly payments. Then you just choose the one that you prefer, and the loan will automatically be deposited into your bank account.
The entire approval and payment process can take as few as four days. Every plan comes with fixed monthly payments and fixed interest rates. There aren't any prepayment penalties, and payments can be made automatically through your bank account.
The company also has an online resource center that's filled with FAQs, articles, and educational information about the loan process.
The rates you're shown will vary based on your credit score, any existing debt to other lenders, and the amount that you want to borrow. Between 2 and 6 percent of the total loan amount will be charged as a fee upon receiving your loan. The better your credit score, the lower this payment will be.
MyAutoLoan is a company specifically designed to help you compare different auto loan offers, as opposed to undefined personal loans. It takes just a few minutes to compare up to four different offers. The service compares offers from many different lenders rather than offering lending options itself.
Some lenders offer refinancing options that allow qualified buyers to defer payments for up to ninety days. When you're looking for offers, you can compare any of these options:
You'll be shown offers from a variety of different lenders. One important note is that you're not guaranteed to be approved. You'll need to meet the specific lender's guidelines.
The website has a number of helpful resources available. You can look at an interest rate chart to compare the lowest rates for different types of loans. An estimator tool will judge what interest rate you can expect to pay before you apply. After learning your interest rate, you can use a payment calculator to determine how much you can afford.
This makes the website a great option for those who aren't sure what qualifications their loan should have. After applying, some decisions are given within minutes, although it varies from lender to lender. The method of funding and exact necessary qualifications depend upon the lender.
Carvana is an online service that aims to change how car buying is done. The company functions like a mixture between an online car dealership and a lending service. You can get pre-qualified offers for financing terms on more than 30,000 vehicles in the company's inventory.
The website offers a variety of tools including an auto loan calculator and a trade-in estimator if you want to trade a currently-owned vehicle for a new one.
To get financing terms, you just have to fill out a two-minute form. The rates you get are valid for 45 days and can be applied to the vehicles you browse through the website. You can also use the financing terms to get an idea of the personalized options available to you with other dealers.
Carvana will also deliver your vehicle to your home so you don't have to pick it up. If you're trading in another vehicle, they'll arrange to have the vehicle picked up rather than you needing to drop it off somewhere.
1-800-Auto-Yes is the top choice when you're looking for easy loan approval, especially if you have a complicated credit history. The company works with people from all credit backgrounds. To get approved for a loan, all you need is a stable income and job history.
For the guaranteed lowest interest rates, Lightstream is the best choice. The company will match or beat the interest rates of any competing lenders. However, to use this option, you do need to have good credit and measurable assets. That means it might not be best for young car buyers or people with a lot of debt.
If you want to compare offers from multiple lenders at once, the best choice is MyAutoLoan. This is also the best place for educational tools to determine what kind of loan you can afford and what interest rate you can expect. To shop vehicles at an existing online marketplace, you'll want to get financing approval through Carvana.
Frequently Asked Questions
What Is an Auto Loan?
Auto loans are loans that you use to purchase a vehicle. A lender will give you the money, which you'll give to the dealer in exchange for the vehicle. You'll then pay the money back to the lender over a predetermined number of months for a fixed interest rate.
Can I Get an Auto Loan Online?
There are several lenders that will let you apply for a vehicle loan online. Some lenders will even tell you whether you prequalify for certain offers just minutes after you apply. With others, you might have to wait a business day or two before getting a response.