The Best Auto Loans in 2021

There’s a good reason why Bank of America is one of the most reputable auto loan lenders in the US and beyond. The bank offers a wide range of loans, competitive rates, and special discounts to loyal customers. You can apply for a new car loan, used car loan, or refinance your current credit.

In addition, you can buy out a leased vehicle or purchase one from a private seller thanks to the bank’s best private party auto loans. There are some limitations on the types of vehicles and the loan amounts, but overall Bank of America is among the best banks for auto loans out there.

Lowest Rates

The APR for new car purchases starts at 2.69%, and for used car loans, it’s 2.99%. In both cases, these are some of the lowest rates you’ll find online, especially if you factor in the discounts. As a rule, refinance loans are slightly higher and start at 3.69% along with lease buyout options. Vehicle purchases from individual sellers through private party auto loans start with an APR at 5.79%.

If you decide to pay off your loan ahead of time, there are no prepayment fees. Of course, the rates we’ve mentioned here apply to users in search of the best auto loans for excellent credit.

Discounts for Account Holders

To sweeten the deal, the Bank of America car loan section includes a special discount for applicants who are already clients – Gold, Platinum, and Platinum Honors members. Gold members are users who have maintained a balance of $20,000 on their accounts, so they qualify for a 0.25% discount.

Platinum members maintained a balance of $50,000 for a 0.35% discount, while Platinum Honors users have at least $100,000 in their accounts, earning them the full 0.5% discount off APR.

Requirements

Bank of America Online has a few strict requirements if you want the best rates for auto loans. First of all, the vehicle in question can’t be older than 10 years or have over 125,000 miles. The overall value of the car needs to be at least $6,000 (and the loan value $7,500). The loans can’t be used for motorcycles, RVs, boats, or aircraft.

The website also notes that the loan doesn’t support commercial or business vehicles, but for specialized vehicle financing, you can apply for the Business Advantage auto loan. The minimum amount for this type of vehicle is $10,000, and it can’t be older than five years. The APR is the same as what you get with used car loans – starting at 2.99%.

Application Process

Finding the best online auto loans through the bank’s website is fairly easy. There is no application fee, and since the process is largely automated, you’ll get an answer within 60 seconds. After you’re approved, your loan submission and proposed interest rate are good for the next 30 days.

The site also includes a simple but useful loan calculator that gives you a good idea of the rates. You can monitor your loans on the go through the Bank of America app that’s available for iOS and Android devices.

Customer Support

There are a few ways to get in touch with the bank to discuss your auto loan rates. Support agents are available via phone during weekdays between 9 a.m. and midnight ET, while on Saturdays they work until 8 p.m.

For a live consultation with a loan officer, you can schedule an appointment online or just visit the bank anytime. If you prefer not to contact the Bank of America customer service, you can find a lot of information on the site, especially in the FAQ sections.

LightStream is SunTrust Bank’s online lending platform that offers some of the cheapest car loan rates in the USA. You can do everything online through the site’s comprehensive, user-friendly interface. The platform covers everything from new and used car purchases to motorcycles and private party loans.

One of the biggest advantages for most users is that there are no car model limitations or mileage requirements. This opens up a lot of possibilities.

Uniform Rates

What’s interesting about LightStream auto loans is that the rates are the same for various types of loans. The lowest used car rate, for example, is 3.99% for loan terms between 24 and 36 months and amounts over $50,000.

This minimum reserved for users with excellent credit is the same for new, used, and classic car loans, as well as refinancing. Private party loans and lease buyouts have slightly higher car loan rates starting at 4.99%.

AutoPay Discount

There are no application or origination fees. However, keep in mind that the aforementioned low rates for auto loans are calculated with the AutoPay option. If you choose the standard invoice method, you’ll be paying 0.5% more. The platform warns you about this, though. And if you’re in Florida, you’ll also have to cover the documentary stamp tax that isn’t included in the APR.

Requirements

The minimum amount you can take is $5,000, which is slightly lower than the industry average, while the maximum is capped at $100,000. Considering the rates, SunTrust LightStream is one of the best places to refinance auto loans. Of course, the terms and conditions forbid you from refinancing a different LightStream loan.

This is fairly standard practice, but it doesn’t hurt to mention it. The value of this lender lies in the fact that, unlike most of the competition, LightStream financing doesn’t have special requirements for the vehicle. There are no mileage or model restrictions, which is why it stands out as a unique option for classic car collectors.

Online Application

LightStream’s biggest selling point is the online application process. You can get everything done online. All you need to do is fill out a couple of forms, send the necessary documents, and you can be eligible for the best car loan on the web. In theory, it’s possible to fund your loan on the same day you submit your application. However, in practice, you’ll most likely have to wait a couple of days.

The website works on any device, so you can easily apply from your computer, tablet, or phone. When researching the best online auto loans on the market, you should definitely consider Lightstream.

Customer Support

LightStream customer service agents are available during weekdays from 9 a.m. until 8 p.m. ET and on Saturdays from noon until 4 p.m. There is no phone support, but you can fill out a contact form if you encounter problems or want to learn more about the company’s best auto loan interest rates.

Note that the agents will only respond during working hours and won’t be able to reply to your Sunday inquiries on the same day. In those instances, you can turn to the site’s fairly detailed FAQ section.

There are numerous reasons why going with a marketplace instead of a single lender might be a great idea. First of all, you get more options to choose from or, in the case of MyAutoLoan, up to four different offers. Secondly, the competition between these lenders is likely to produce better offers.

Thirdly, you have a much better chance of finding the best auto loans for bad credit because the results are based on your own score. Here’s what you can expect from MyAutoLoan.

Competitive Rates

Because of the way the marketplace functions, you’ll come across different rates every day. The MyAutoLoan website gives you an overview of the lowest current auto loan rates to keep you in the loop. The APR for new car loans hovers around 2.75%, while for used cars you can expect around 3%.

The refinance rates seem to be the lowest, often dropping below 2%, while private party and lease buyouts sit at around 3.5%. While the rates depend on the term length, you’re unlikely to come across anything above 5%.

Tools and Resources

After you’ve seen the best auto loan rates that the site has to offer each day, you should try out two other tools available on MyAutoLoan.com. The estimator tells you what rates you can expect in your area, based on the amount you want to borrow and a broad self-assessment of your credit score.

In addition, you have a basic calculator at your disposal that lets you know what your monthly payments might be based on the full amount you want to borrow and the APR. MyAutoLoan also offers a handful of useful resources that can help you check your credit, find a vehicle, or buy insurance.

Fast Application

One of the main reasons why this might be the best place to get auto loans is the speed of the application process. All you need to do is fill out a form and wait for the reply. In most cases, your offers will arrive within minutes. Of course, the lenders themselves might take longer to approve your request.

The only thing you can do to expedite the process is make sure the information you send is accurate and upload all the necessary documents. Once you’re approved, you can immediately start using your funds.

Customer Support

If you have any questions regarding MyAutoLoan rates or the company’s cheapest auto loans, you can either reach out to customer service or browse through the FAQ/Help sections. Customer support agents are knowledgeable and willing to help; however, you can only contact them by filling out a form on the site.

There are no phone or live chat options. The help section has a broad selection of reading materials, but that doesn’t exactly qualify as instant assistance.

If you’re going with a credit union, you might as well go with one of the best-known organizations in the industry. When compared to the competition, one of the CCU’s key benefits is flexibility. It’s widely regarded as the best credit union for auto loans because it doesn’t have a minimum loan term or amount restrictions.

To be eligible for a loan, you’ll need to become a member, but it’s an inexpensive, fast, and worthwhile process. It’s a shame you can’t find much useful information on the website, but that’s not exactly a deal-breaker.

Lowest Rates and Discounts

Consumers Credit Union secured its place among the credit unions with best auto loan rates with its starting APR of 2.69%. This option is available within a very flexible loan term of 0 to 60 months but limited to vehicles manufactured after 2018. Of course, you have to have an excellent credit score to even consider this possibility.

The lowest APR for motorcycles is 5.90%, while RVs start at 5.40%. Note that these numbers are calculated with a 0.5% discount rate if you enable automatic payments through CCU. If you choose the third-party system, you’ll only get a 0.25% discount.

Membership Fee

The first step towards becoming eligible for the best auto loan rates is acquiring a CCU membership. This is a standard requirement for credit unions because of the organizational structure – you’re a client and an owner at the same time. However, unlike some other unions, CCU isn’t conditioned by employment or location.

All you need to do is pay the one-time fee of $5 and you’re good to go. This stays in your account and buys you a single share in the organization. When you decide to close your account, you get your money back.

Loan Terms and Vehicle Restrictions

The maximum loan tenure is 84 months, and there is no minimum. The threshold for low vehicle loan rates is 60 months, which is quite generous when compared to the competition. Motorcycle loans have a maximum cap of 60 months, while loans for RVs can go up to 180 months in total.

While Consumers Credit Union doesn’t impose limits on mileage, the model has to be from 2014 or newer. In fact, you’ll get the best deals for models manufactured in 2018 or later. The site does mention rates for vehicles older than 2013, but you’ll probably need to consult a CCU representative to find out if these are actually available.

Interface and Application Process

The site’s interface isn’t its strongest asset. You won’t find extensive information about auto loans, best rate details, or specific requirements for each loan. Everything seems a little disorganized. Aside from the online application method, you can also use the phone or locate a nearby branch.

The Consumers Credit Union customer service has slightly shorter working hours than its competitors: 8 a.m. to 6 p.m. CST during weekdays and 8 a.m. to 2 p.m. on Saturdays. Customer agents are extremely helpful and will undoubtedly help you find the best rates on auto loans.

PenFed is a reputable credit union that offers some of the lowest loan rates to both military-affiliated personnel and civilians. Anyone can get a loan here, but as is the case with other credit unions, there is a small membership fee. PenFed’s low APR rate of 1.39% works only if you sign up for the PenFed car buying service.

But considering the offer, it’s definitely worth it. So what exactly makes this organization the best credit union for an auto loan?

Industry-Leading Low Rates

The star of the show is the extremely low APR of 1.39% that you can get with the 36-month term for any amount you want (up to $100,000). However, to be eligible for these PenFed auto loan rates, you need to have an excellent rating and buy your vehicle through the company’s car buying service.

Even if you’re not searching for a discount, it’s a good platform to find an affordable deal on a car and ensure you’re working with certified dealers. Without this discount, the best auto loan rates you can get start with an APR of 2.14%, which is still among the cheapest options on the market.

Loan Terms and Amounts

Loan terms range between 36 and 72 months. The minimum amount you can borrow depends on the number of months you choose. For example, for 36 months the minimum is $500 (which works out to just $14 per month). With 60 and 72 months, the minimums are $10,000 and $15,000 respectively.

The calculator on the website gives you a pretty good breakdown of your payments if you include the down payment, interest, trade-in value, and other parameters.

Types of Loans

The PenFed auto loan is a great option for both new and used vehicles as well as refinancing car loans. You can also choose the payment saver option, which enables you to make lower payments than with a conventional auto loan but with a higher interest rate. At the end of the term, you can choose what happens with the remaining loan balance – pay it off, refinance the debt, or sell your car.

This is a popular option among users because it reduces the monthly load and presents additional options. The PenFed car loan payment saver system can be applied to new cars (no older than 2019) and used vehicles (no older than 2018).

Membership Options

PenFed is a credit union and as such requires you to be a member to gain access to the best rates on car loans. If you’re affiliated with the military, you and your family members can automatically join the union. All you need to do is clarify your military record on your online application. If you have no affiliation with the military but still want to join the union, you can make a $5 deposit that stays in your account.

Application and Customer Support

The application process is straightforward. Everything is done online, and you just need to set up an account. You’ll then be able to review the auto loan rates that you’re eligible for and check the status of your recent applications. The online portal works on pretty much every browser and operating system, so you shouldn’t have any problems.

You can contact PenFed customer service agents by phone or contact form, but make sure you know their working hours. The agents work a double shift on weekdays, a couple of hours on Saturdays, and a full shift on Sundays. If you want to learn more about auto loans and best rates, find specific forms, or use calculators, PenFed offers a comprehensive Advice Center with a very useful FAQ section.

RefiJet is one of the best companies to refinance auto loans thanks to its competitive rates and simple application process. The company has a partnership with numerous high-end lenders, so you can easily find the best car loans for your needs without damaging credit.

What separates RefiJet from the competition is the company’s level of involvement in the entire process, as well as its range of refinancing options. RefiJet does a lot of your paperwork for you and enables you to buy motorcycles, SUVs, and even trucks.

Rates and Fees

Although it ultimately depends on the lenders and their customized offers, RefiJet’s best auto refinance loans start at 2.74% APR. Note that even if you have a perfect credit score, you might not be eligible for this rate. This offer also grants new clients a two-month period with no payments.

RefiJet won’t charge you anything for its service, but you’ll still have to pay for title transfers and additional fees required by the state. There is no application fee, while prepayment penalties and late fees depend solely on the lenders. Some are more generous than others.

Reasons for Refinancing

The RefiJet car loan site explains how and why you should refinance your car loans. The company’s selection of the best auto loan providers can help you lower your interest rate, extend the terms, or decrease monthly payments through refinancing. This is often used to get cash back from equity, add or remove co-borrowers, or take a break from payments for a month.

All of these reasons are explained in great detail on the site, which is a perfect example of good user experience.

Requirements

There are a few requirements. First off, you need to be employed and have a legitimate source of income. To get the best auto loans for fair credit, your most recent car payments need to be in order, and you have to have a valid license and registration documents. As for the vehicle in question, it mustn’t be older than 10 years and needs to have full insurance coverage.

The minimum loan amount is $7,500.

Application Process and Customer Service

The application is extremely easy and user-friendly. RefiJet’s loan officers guide you through the process, handling most of the paperwork for you. The prequalification process relies on the soft pull method, so it doesn’t affect your credit score. You get your customized offers within minutes and can discuss prospects with the company’s specialists.

Note that once you choose one of the best companies for auto loans, the lender will do a hard pull to verify all the information. If you have any questions, concerns, or want to learn more about RefiJet’s work, you can contact customer service. It’s available via phone, email, or through the on-site contact form.

Founded in 1994, Capital One has since acquired more than $360 billion in total assets. It’s one of the largest banks in America and is currently the second largest auto financing company in the country. Capital One is based in Virginia, but it provides a wide range of financial products across the US.

Types of loans and restrictions

Thanks to its nationwide network of car dealers, Capital One is one of the best banks for auto loans. Whether you want to buy a new or a used vehicle, Capital One will help you find the most suitable option. You can also choose between individual and joint loans, with the latter being an ideal option if you’re buying a car with your spouse. With joint loans, you can qualify for a better loan rate and borrow a larger amount of money.

As for Capital One refinancing, the bank only refinances standard auto loans that have a single lienholder on the car title. You must refinance the full amount of your auto loan, and there’s no cashback or lease buyout option. But Capital One is still one of the best banks for refinancing auto loans. If you decide to refinance your credit at Capital One, it won’t impact your credit score, and you can save an average of $75 per month.

Of course, you can also get new and used auto financing. These loans can be used to purchase cars, trucks, sport utility vehicles for personal use, and minivans. The vehicle has to be a 2010 model year or newer and has less than 120,000 miles. There are also restrictions on some car models and brands, including camper vans as well as Saab, Daewoo, Oldsmobile, and Suzuki models. Lastly, the car has to come from Capital One’s network of more than 12,000 eligible dealers, which gives you plenty of options to choose from.

Requirements and loan terms

When you apply with the best bank to get a car loan, you need to meet its unique set of requirements. Capital One’s requirements are in line with industry standards, which means that applicants need to be US residents who are at least 18 years old and have a steady income. The income requirements range from $1,500 to $1,800, depending on your creditworthiness.

The APR can be as low as 2.99% or as high as 24.99%, depending on a range of factors, including the loan amount and term length, loan-to-value ratio, down payment, and vehicle characteristics. As for the loan amount, the minimum you can apply for is $4,000, while the maximum goes up to $75,000.

After you complete a prequalification procedure, you’ll be informed about the APR, monthly payments, and term length.

Capital One might not be the place for the best bad credit auto loans, but that doesn’t mean that people with bad credit scores can’t get a good deal.

User-friendly Auto Navigator

One of the reasons why Capital One is among the most popular places for car loans is its simple and effective online prequalification tool. Auto Navigator helps you find a vehicle and a dealer in a few easy steps, without impacting your credit score.

Its intuitive interface gets top marks for navigational efficiency, allowing you to conduct fast and comprehensive online searches on any device you use. During prequalification, you can personalize your purchase and compare your monthly rates from various dealers. It will help you get the best new car interest rates and choose the option that fits your budget.

Customer support

According to numerous online reviews, Capital One has excellent customer service. There’s no live chat or email support, but you can get a hold of agents by phone from Monday to Friday between 9 a.m. and 9 p.m. and Saturday between 10 a.m. and 7 p.m. (ET).

The next name on our list of the best car financing solutions is Carvana. Founded in 2012, Carvana is an Arizona-based company that provides an all-in-one auto shopping service. Its unique selling model is the best for those who want to get a loan and buy a car from the same place as Carvana offers financing options for its inventory of cars. You can choose from thousands of vehicles and purchase them online, and the company delivers the car to your front door. In addition, you can trade your car for a new one or sell it to Carvana.

Loan terms and requirements

If you are looking for the best used car financing solution, Carvana is the perfect place, especially if you don’t have a stellar credit score. This online lender offers affordable auto loans to applicants with credit scores below 600.

However, to qualify for a loan at Carvana, you need to meet other requirements. You need to be a resident of a state where Carvana provides its services (the company does not operate in Hawaii and Alaska) and be at least 18 years old. To get low used car finance rates, you also need to have a minimum annual income of $4,000.

The minimum loan amount at Carvana is $1,000, and the company offers repayment terms between 36 and 72 months.

Purchasing options

Carvana sells used cars with low milestones and has more than 20,000 vehicles. To search the database and compare various vehicles, you need to create an account at Carvana. You can narrow your search to fit your needs by using nine filters. Note that you cannot negotiate prices with the dealer, but considering its rich inventory, you shouldn’t have any trouble finding your perfect car.

In addition to offering the best used car auto loans, Caravan’s services are available around the clock, meaning that you can make a purchase at any time you want. You can choose a car, buy it, and select a delivery date. The car can be delivered to your address within one business day. Once you get your contract and review it, you can close the purchase within 10 minutes.

Another great thing about Carvana is that you can use other sources of financing to buy a car, including other online lenders and banks.

Additional services

Not only is Carvana the best place to get a car loan for used cars, but it’s also a great place to sell your vehicle. The entire process goes through Carvana’s website where the company appraises your car. The final trade-in inspection is possible through some of the company’s vending machines, or Carvana’s representatives will do it in person, depending on where you live.

Customer support

To get any clarification about Carvana’s best auto loans for used cars, you can contact the company’s knowledgeable and polite customer support team. Agents can be reached by phone during business days from 7 a.m. to 9 p.m. (ET). But phone support is not the only customer service option. You can also use ticketing support or you can talk with a representative via live chat. There’s also a short video that may answer some of your questions as well as an extensive FAQ section