Best Online Auto Loan Services
CarsDirect
CarsDirect is best known as a car-buying service, but it also provides a portal for getting the best auto loan. It provided a wider range of customer-friendly information than its competitors, including a loan calculator, trade-in-value calculator, and dozens of articles about car loans and buying strategies.
There’s also no minimum or maximum amount for which you can apply. For instance, some companies won’t allow you to apply for any less than a $5,000 or $10,000 loan, or won’t even consider a loan for a car with higher mileage.
A downside here (and for most online auto-loan services) is that after submitting your information, you may field calls or emails from lenders even after making your selection. And if you despise spam as much as I do, that might be a deal-breaker for you.
MyAutoLoan
MyAutoLoan also connects customers with lenders for all major Auto loan types, with the added bonus of allowing applications for lease buyouts.
A handy interest-rate estimator helps you get an idea of what you should expect to pay for a car loan based on your credit score, location, and type of loan. For example, if I’m looking at a $25,000 new Auto loan in Knoxville, Tenn., with excellent credit, I might expect an average APR of 3.11%, but if I’m looking at the same loan in Los Angeles with average credit, my average APR would be 7.42%.
There are extensive FAQs to answer customer questions such as “Will applying for an Auto loan hurt my credit score?” and “Do I have to use the full loan amount?” There are also calculators that help you estimate what you can borrow and what your payment will be for a certain loan amount.
Best of the Big Banks
LightStream
LightStream, an arm of SunTrust Bank, is a compelling option for customers with top-notch credit. Rates start at 3.09% APR (as of 8/14/18) for new cars and used cars purchased from dealers.
Depending on credit, LightStream offers secured and unsecured loans. LightStream will beat other lenders’ offers and has a $100 guarantee for unsatisfied customers — if you’re unsatisfied within the first 30 days after getting a loan, they’ll give you $100 once you complete a service questionnaire.
The major downside here is that LightStream is very picky about customers. Aside from good to excellent credit, you’ll likely need to show a very healthy income and assets to be approved. There’s also little in the way of car-buying advice on their site.
U.S. Bank
U.S. Bank offers the best blend of loan options, competitive interest rates, and consumer-friendly information of the big-bank lenders. Its loan options include loans for cars purchased from private sellers, which many big banks shun. U.S.
Bank Of America
Bank of America provides all kinds of auto loans, including loans for cars purchased from private sellers and lease buyouts. The bank allows loans for vehicles up to 10 years old with 125,000 miles.
Interest rates are also competitive, and current Bank of America customers are eligible for interest-rate reductions. You can do business at one of more than 5,000 branches or manage your account with extensive online-banking tools.
Best Auto Loans for Bad Credit
Auto Credit Express
Auto Credit Express specializes in helping car buyers with poor credit, and that knowledge often translates into more options and better interest rates than would otherwise be available to sub-prime borrowers. The company works with customers who have declared bankruptcy, and it allows loans to special-finance dealers.
Auto Credit Express doesn’t restrict you from applying based on loan amount, vehicle age, or mileage, which is particularly crucial for bad-credit customers who may not be able to consider newer, pricier cars. The company has an A+ rating from the Better Business Bureau.
