Fortune500 News Hubb
Advertisement Banner
  • Home
  • Fortune 500 News
  • Business News
  • Contact
No Result
View All Result
  • Home
  • Fortune 500 News
  • Business News
  • Contact
No Result
View All Result
Wellnessnewshubb
No Result
View All Result
Home Business News

Best Auto Loans 2022 for Buying, Refinancing, Bad Credit, and More

admin by admin
December 1, 2022
in Business News


Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Best auto loans

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Editor’s rating

4.75/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Regular Annual Percentage Rate (APR)

New: Starts at 5.04%, Used: Starts at 5.14%, Refinance/Lease Buyout: Starts at 5.84%

Editor’s rating

4.5/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Great for borrowers with excellent credit

Regular Annual Percentage Rate (APR)

New/Used/Refinance: 5.99% to 10.74%, Lease Buyout: 6.49% to 11.24%

Editor’s rating

4/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Great for borrowers with bad credit

Regular Annual Percentage Rate (APR)

New: Starting at 2.99%, Used/Refinance/Lease Buyout: Unspecified

Starting at $4,000, maximum not disclosed

Editor’s rating

2/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Regular Annual Percentage Rate (APR)

Refinance/Lease Buyout: 3.74% to 7.49%

Editor’s rating

3.5/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Regular Annual Percentage Rate (APR)

New as low as 7.36%, Refinancing as low as 7.79%

Editor’s rating

4.5/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Regular Annual Percentage Rate (APR)

New, Used, Refinance as low as 4.54%

Editor’s rating

3.5/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Regular Annual Percentage Rate (APR)

From dealer: Starts at 5.24%, From private party: Starts at 7.39%, Lease buyout: Starts at 5.24%, Starts at 5.39%

When it comes to car shopping, finding the right loan can be just as important as finding the right car. 

It’s not as easy as simply showing up to the dealership. To get the lowest interest rate, you’ll want to shop around for an auto loan to see what kind of financing is available to you. Dealerships often mark up the interest rates on loan offers from lenders, and that can leave you paying more for the same car. 

As you start shopping, keep in mind that your local small bank or credit union could also be a great place to get a loan — these institutions often offer lower car loan interest rates than big banks, but are usually limited to a relatively small geographic area.

Here are a few places to help you start your search for a variety of situations.

Best overall, best for lease buyouts: Bank of America

Bank of America Auto Loan


Regular Annual Percentage Rate (APR)

New: Starts at 5.04%, Used: Starts at 5.14%, Refinance/Lease Buyout: Starts at 5.84%

Bank of America Bank of America Auto Loan

Bank of America Auto Loan


Regular Annual Percentage Rate (APR)

New: Starts at 5.04%, Used: Starts at 5.14%, Refinance/Lease Buyout: Starts at 5.84%

On Bank of America’s website

Bank of America Bank of America Auto Loan

On Bank of America’s website

Details


Regular Annual Percentage Rate (APR)

New: Starts at 5.04%, Used: Starts at 5.14%, Refinance/Lease Buyout: Starts at 5.84%

Pros & Cons

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Highly competitive APR

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

High maximum loan amount

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

No origination fees or prepayment penalties

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Available to borrowers in all 50 states

Dash icon A dash. It often indicates an interaction to shrink a section.

High minimum loan amount

Dash icon A dash. It often indicates an interaction to shrink a section.

Rate discounts require you to be a Bank of America member

Highlights

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

  • Repayment terms between 12 months and 75 months
  • Customer service available by phone
  • $7,500 loan minimum, up to $150,000 loan limit
  • Loans are made by Bank of America, member FDIC
  • To receive rate discount, you must have a three-month average balance in Bank of America accounts or Merrill Lynch investment accounts greater than or equal to the following balances: Gold members (minimum $20,000 balance) : .25% off listed APR,  Platinum members (minimum $50,000 balance): .35% off listed APR, Platinum honors members (minimum $100,000 balance): .5% off listed APR

Additional Reading

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Read our review

Read Our Review A looong arrow, pointing right

Bank of America has excellent rates for auto loans currently. Rates for a new car purchase start as low as 2.09% APR, and a used car could be as low as 2.29% APR. Bank of America offers rate discounts for current customers, up to 0.5%.

If you’re interested in buying the car you’re currently leasing but need a loan to do so, Bank of America offers a loan for that. Bank of America offers a variety of auto loans, and like the others, its interest rates are competitive in 2021. Lease buyouts can have higher interest rates than a new or used car loan, but Bank of America’s lease buyout APRs start lower than the rates other lenders offer.

Best for excellent credit: LightStream

Lightstream Lightstream Auto Loan


Regular Annual Percentage Rate (APR)

New/Used/Refinance: 5.99% to 10.74%, Lease Buyout: 6.49% to 11.24%

Lightstream Lightstream Auto Loan


Regular Annual Percentage Rate (APR)

New/Used/Refinance: 5.99% to 10.74%, Lease Buyout: 6.49% to 11.24%

Lightstream Lightstream Auto Loan

Details


Regular Annual Percentage Rate (APR)

New/Used/Refinance: 5.99% to 10.74%, Lease Buyout: 6.49% to 11.24%

Pros & Cons

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Great APR range

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

No fees

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Same-day funding available

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Several types of auto loans to choose from

Dash icon A dash. It often indicates an interaction to shrink a section.

High minimum credit score needed

Dash icon A dash. It often indicates an interaction to shrink a section.

Need a hard credit check

Highlights

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

  • Loan amounts range from $5,000 to $100,000
  • Loan term lengths range from 24 months to 84 months
  • Rate discount of .50% when you sign up for AutoPay
  • No restrictions on age or mileage of your car
  • Loans made by Truist Bank, member FDIC

If you have a good or excellent credit score, you might want to consider LightStream in addition to Bank of America. A part of SunTrust Bank, Lightstream focuses on auto loans to customers with good or better credit.

Because it focuses on a narrow subset of customers, its rates don’t go too high — For a 36-month loan for a new car purchase between $10,000 and $24,999, interest rates range from 2.49% to 6.79%. However, borrowers with lower credit scores may find better rates elsewhere. 

Capital One Capital One Auto Loan


Regular Annual Percentage Rate (APR)

New: Starting at 2.99%, Used/Refinance/Lease Buyout: Unspecified

Capital One Capital One Auto Loan


Regular Annual Percentage Rate (APR)

New: Starting at 2.99%, Used/Refinance/Lease Buyout: Unspecified

Capital One Capital One Auto Loan

Details


Regular Annual Percentage Rate (APR)

New: Starting at 2.99%, Used/Refinance/Lease Buyout: Unspecified

Pros & Cons

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Low minimum loan amount

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Competitive APR

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Application to prequalify takes several minutes

Dash icon A dash. It often indicates an interaction to shrink a section.

Need to make your loan through a licensed dealer

Dash icon A dash. It often indicates an interaction to shrink a section.

Full information on fees and interest rate range not disclosed until you apply

Dash icon A dash. It often indicates an interaction to shrink a section.

Not available to borrowers in Alaska or Hawaii

Highlights

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

  • Repayment terms between 24 and 84 months
  • Customer service available by phone and mail
  • Minimum loan amount of $4,000, maximum undisclosed
  • Available to residents of the 48 contiguous states
  • Loans are made by Capital One Bank, member FDIC

Additional Reading

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Read our review

Read Our Review A looong arrow, pointing right

Capital One offers easy and reputable auto loans for borrowers with credit scores of 500 or higher. Capital One offers loans as small as $7,500 for used vehicles.

Clearlane by Ally Bank Clearlane by Ally Bank Auto Loan

Clearlane by Ally Bank Auto Loan


Regular Annual Percentage Rate (APR)

Refinance/Lease Buyout: 3.74% to 7.49%

Clearlane by Ally Bank Clearlane by Ally Bank Auto Loan

Clearlane by Ally Bank Auto Loan


Regular Annual Percentage Rate (APR)

Refinance/Lease Buyout: 3.74% to 7.49%

On Clearlane by Ally Bank’s website

Clearlane by Ally Bank Clearlane by Ally Bank Auto Loan

On Clearlane by Ally Bank’s website

Details


Regular Annual Percentage Rate (APR)

Refinance/Lease Buyout: 3.74% to 7.49%

Pros & Cons

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Soft credit check to prequalify

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Co-borrowers allowed

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Guaranteed Asset Protection (GAP)

Dash icon A dash. It often indicates an interaction to shrink a section.

Restrictive loan amount range

Dash icon A dash. It often indicates an interaction to shrink a section.

Higher APR than competitors

Dash icon A dash. It often indicates an interaction to shrink a section.

Only loan refinancing and lease buyouts available

Dash icon A dash. It often indicates an interaction to shrink a section.

Available in 48 states

Dash icon A dash. It often indicates an interaction to shrink a section.

Slow funding process

Highlights

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

  • Loan amount range from $10,000 to $80,000
  • Repayment terms between 36 to 72 months
  • GAP coverage available, which reduces the gap between how much the car is worth and how much you owe on the vehicle if your car is totaled or stolen
  • Can’t get a loan in Nevada, Vermont, or Washington, DC
  • Funding can take up to a few weeks
  • Customer service available by phone and email
  • Loans are made by Ally Bank, member FDIC

Online bank Ally doesn’t offer financing to purchase a car. But, if you’re looking to refinance the car you already have, its auto lending division Clearlane offers some competitive rates. As long as your vehicle meet the standards (less than 100,000 miles, and fewer than 10 years old), this lender could offer a competitive rate as low as 3.99% according to NerdWallet. Clearlane also offers auto lease buyouts.

Best for used car loans: US Bank

US Bank US Bank Auto Loan


Regular Annual Percentage Rate (APR)

New as low as 7.36%, Refinancing as low as 7.79%

US Bank US Bank Auto Loan


Regular Annual Percentage Rate (APR)

New as low as 7.36%, Refinancing as low as 7.79%

US Bank US Bank Auto Loan

Details


Regular Annual Percentage Rate (APR)

New as low as 7.36%, Refinancing as low as 7.79%

Pros & Cons

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Competitive rates, particularly on used cars and refinancing

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Variety of term lengths available

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

US Bank relationship rate discount

Dash icon A dash. It often indicates an interaction to shrink a section.

Can’t buyout your lease

Dash icon A dash. It often indicates an interaction to shrink a section.

High minimum loan amount

Dash icon A dash. It often indicates an interaction to shrink a section.

Fee for paying off your loan early

Highlights

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

  • Term lengths range from 12 to 72 months
  • Minimum income and credit score requirements undisclosed
  • Discount of .50% for automatic payments from a US Bank checking or savings account
  • Minimum loan amount of $5,000, maximum of $100,000
  • Prepayment penalty of 1% of the original loan amount, with a $50 minimum and $100 maximum if account is closed within 12 months
  • Loans are made by US Bank National Association, Member FDIC

US Bank’s top rates are comparable to other competitors’ rates, particularly on used cars and auto loan refinancing.

The bank will allow you to get your financing preapproved without having your car picked out. Once you decide on a car, you can finalize your loan terms. The lender doesn’t specify a minimum credit score to get a loan or a timeframe for when you’ll receive your money. 

Navy Federal Navy Federal Credit Union Auto Loans

Navy Federal Credit Union Auto Loans


Regular Annual Percentage Rate (APR)

New, Used, Refinance as low as 4.54%

Navy Federal Navy Federal Credit Union Auto Loans

Navy Federal Credit Union Auto Loans


Regular Annual Percentage Rate (APR)

New, Used, Refinance as low as 4.54%

On Navy Federal’s website

Navy Federal Navy Federal Credit Union Auto Loans

On Navy Federal’s website

Details


Regular Annual Percentage Rate (APR)

New, Used, Refinance as low as 4.54%

Pros & Cons

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Top-notch interest rates

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

No prepayment penalties or origination fees

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Many term lengths available

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Wide range of loan amounts

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Around the clock customer service

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Mobile app

Dash icon A dash. It often indicates an interaction to shrink a section.

Membership required to qualify for a loan

Dash icon A dash. It often indicates an interaction to shrink a section.

Late fee

Dash icon A dash. It often indicates an interaction to shrink a section.

Online funding not available

Highlights

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

  • Repayment terms between 12 months 72 months (used cars) or 96 months (new cars)
  • Customer service available 24/7 by phone
  • Borrow as little as $250 or as much as $500,000 on new and used cars. Minimum to refinance is $5,000, maximum not listed
  • Late fee of $29
  • Must be a member of the military community or a family member to qualify
  • You’ll get your financing check through the mail or by visiting a branch
  • Loans are made by Navy Federal Credit Union

One of the biggest attractions of a Navy Federal auto loan is the credit union’s low interest rates. Navy Federal also features an online Car Buying Center, where the company walks you through the process of financing, buying, researching, and insuring your next car. 

Best for new cars: PNC Bank

PNC Bank PNC Auto Loans


Regular Annual Percentage Rate (APR)

From dealer: Starts at 5.24%, From private party: Starts at 7.39%, Lease buyout: Starts at 5.24%, Starts at 5.39%

PNC Bank PNC Auto Loans


Regular Annual Percentage Rate (APR)

From dealer: Starts at 5.24%, From private party: Starts at 7.39%, Lease buyout: Starts at 5.24%, Starts at 5.39%

PNC Bank PNC Auto Loans

Details


Regular Annual Percentage Rate (APR)

From dealer: Starts at 5.24%, From private party: Starts at 7.39%, Lease buyout: Starts at 5.24%, Starts at 5.39%

Pros & Cons

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Low minimum APR for new cars

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Accessible physical branch locations

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Automated payment discount

Dash icon A dash. It often indicates an interaction to shrink a section.

High minimum loan amount

Dash icon A dash. It often indicates an interaction to shrink a section.

Can’t use funds for a car more than eight years old

Highlights

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

  • Term lengths range from 12 to 72 months
  • Minimum income and credit score requirements undisclosed
  • Discount of .25% for automatic payments
  • Customer support is available over the phone or through the company’s online portal
  • Funds can be used for cars model 2014 and newer
  • Minimum loan amount of $5,000 when buying from private party, lease buyout, or loan refinancing. Minimum of $7,500 when buying from dealer
  • Loans are made by PNC Financial Services Group, Inc.

PNC offers great rates for borrowers who have good credit. The bank offers financing for cars model year 2014 or newer — if you want to buy an older car, you won’t be able to get a loan through PNC.

Borrowers with a poorer credit history may find it hard to qualify at all or might be saddled with high interest rates. 

Which lender is the most trustworthy?

We’ve reviewed each institution’s Better Business Bureau score to help you make the best decision possible when choosing an auto loan. The BBB measures businesses based on factors like truthfulness in advertising, honesty about business practices, and responsiveness to consumer complaints. Here is each company’s score:

A majority of our top picks are rated A or higher by the BBB, with the exception of Clearlane by Ally. Keep in mind that a high BBB score does not guarantee a good relationship with a lender, and that you should keep doing research and talking to others who have used the company to get the most helpful information you can.

The BBB currently rates Clearlane by Ally a D- because of 53 complaints filed against the business, including one unresolved complaint. Due to the lenders’ BBB scores, you might prefer to use a different auto loan company on our list.

How we determined the best car loans

These lenders were chosen based on interest rate (APR) for various credit scores, whether you’re buying new or used, and loans for a specific need like refinancing or lease buyouts. Insider gathered data from NerdWallet, MagnifyMoney, and Credit Karma, and from the lenders themselves. This list only considers loans that were available in most of the US, and does not include captive lenders — lenders owned by auto companies. 

Auto loan credit score requirements

Of all the lenders on our list, only Lightstream and Capital One disclose their minimum credit score requirements. Lightstream’s is 660 and Capital One has a floor of 500 (though you won’t qualify for great rates from Capital One with those scores).

The credit score you’ll need to qualify for a loan will depend on the particular lender, though you’ll likely qualify for a better rate with a higher score.

You can find your credit report for free on annualcreditreport.com from any of the three major credit bureaus weekly through the end of 2022. While this report won’t give you your credit score, it will show you information about your credit and payment history, which lenders use to decide whether to give you a loan. Reviewing your credit report can help you know what you need to improve. 

You can get your score at no cost on your credit card statement or online account. You can also pay for it from a credit reporting agency. 

Credit scores range between 300 and 850. Here’s how scores break down, according to FICO: 

  • Very poor: 300 to 579
  • Fair: 580 to 669
  • Good: 670 to 739 
  • Very good: 740 to 799 
  • Exceptional: 800 to 850

Checking your rates with most companies will not impact your credit score because a majority of lenders will only generate a soft credit inquiry when showing you personalized rates. However, if you choose to accept a loan, lenders will likely conduct a hard credit inquiry, which may negatively affect your credit score. A hard inquiry offers a lender a comprehensive look at your credit history.

How do I choose the best auto loan for me?

To find the best auto loan for your personal situation, look at several key factors. Many borrowers prioritize the lowest interest rate, but also consider any fees, the minimum credit score needed, and the accessibility of the lender’s customer service.

You also need to take into account what type of cars the dealer will finance, how much money they will finance, and the loan term length.

Guides like this one will help you compare multiple lenders in the same place to weigh their pros and cons. Make sure to also read individual reviews of any lenders you’re considering. 

Frequently asked questions

Car dealerships are allowed to mark up interest rates on auto loans that they offer, and generally, they do. The interest rate a salesperson offers often includes a cut for the dealership, resulting in a higher interest rate for you. While you might qualify for an interest rate of 6% from a bank, you might see 6.5% or even 7% from a dealership, for example. 

If you’re willing to put some work in, you may be able to save by shopping around on your own. The best way to avoid this issue is to get pre-approved by a few banks or lenders as you start car shopping, and take those pre-approvals to the dealership with you. Then, you’ll have a few estimates on what your cost to borrow could be, and can comparison shop for the lowest APR. 

The longer the loan term, the lower the monthly payment. But, paying for longer than 60 months (five years) on your auto loan could leave you owing more than your car is worth. 

Cars depreciate quickly, and if you’re paying for more than five years on an auto loan, your loan could end up in this situation, also called being “upside-down.” As auto loans increase in length, auto loan delinquencies tend to increase, too.

If you’re shopping for a car loan with bad credit, you could benefit a lot by doing your research and shopping around when looking for an auto loan. Avoid any “buy here, pay here” financing, as these loans often come with exorbitant interest rates and high monthly payments, which could cause you to default on your payments.

A local credit union might be a good place to start if you have a bad credit score — sometimes lenders like these can be more forgiving and offer lower interest rates than big banks.

Liz Knueven

Personal Finance Reporter

Ryan Wangman, CEPF

Loans Reporter

Ryan Wangman is a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).
In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe. 
Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services here >>


Top Offers From Our Partners


Wealthfront Cash Account

A high-yield cash account that earns 3.30% annual percentage yield. No account fees. APY as of 11/14/2022.



Source link

Previous Post

Cotopaxi says its purpose-driven mission is such a draw that 3,000 people applied for one job opening

Next Post

Why Yext Stock Jumped 19% Higher Today

Next Post

Why Yext Stock Jumped 19% Higher Today

Recommended

UK sales of electric cars overtake diesel for first time

3 weeks ago

China’s energy demand expected to rebound in 2023 amid COVID reopening plans, S&P says

2 months ago

Sam Bankman-Fried to reverse decision to fight extradition: Report

1 month ago

Why Meta Platforms Stock Dove Today

2 months ago

Black Friday online shoppers embrace flex pay but drive record sales

2 months ago

A hacker behind unauthorized FTX crypto withdrawals has been identified, says rival exchange Kraken

3 months ago

© 2022 Fortune500 News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Fortune 500 News
  • Business News
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • Fortune 500 News
  • Business News
  • Contact

© 2022 Fortune500 News Hubb All rights reserved.