Best Auto Loan of 2022
Auto loans or car loans are loans used to buy a new or used vehicle. Auto loans are mainly secured loans, as the vehicle you want to buy is the collateral.
These types of loans are also simple interest rate loans. Thus, their terms are usually between three to five years, within which you must repay.
You can get auto financing loans from a car dealership or a lender, and this is where it gets confusing. Some so many lenders offer auto loans that you don’t know the best auto loans.
In this post, we are all about the best auto loans, and we will review the best auto loan, lenders. These lenders will help you get the car of choice without hurting your personal finance.
Table of Contents
Overview: Best Auto Loans
Best New or Used Auto Loan Rates: Detailed Insight
LightStream: Best Competitive Rates
LightStream is one of the best online lenders for auto loans that you can use as it offers used car loans and new car loans. Also, LightStream provides unsecured car loans for its customers, but these customers must have an excellent credit history.
LightStream’s auto loan has zero restrictions, and it doesn’t limit its auto loans irrespective of the car’s age, mileage, model, etc. Their auto loans offer the same rates for new or used car loans and if you want to refinance car loans.
As mentioned earlier, LightStream gives unsecured loans, but these loans are mostly for customers with excellent credit history. Interestingly, even though unsecured auto loans have an APR within the range of 2.49% to 10.99%.
LightStream won’t ask for you for your report, nor does it have a minimum credit score requirement as it offers loans for fair credit borrowers. However, you have a better chance of getting an auto loan from LightStream if you have a minimum credit score of 660 and above.
↳ Best Feature?
As a lender, LightStream offers one of the best auto loan rates for car loans, and it provides loans within the range of $5,000 to $100,000 with loan payments terms of 2 to 7 years. So, you have ample time to make monthly car payments until you repay the loan.
Even with a competitive auto loan rate of 2.49% to 10.99%, LightStream auto loans have an automatic payments discount of 0.5%. In addition, they offer interest rate discount under their Rate Beat Program, which allows them to give you a discount of 0.1% lower than what a competitor has agreed to provide you.
↳ Who is it Best For?
You can benefit from this best auto loan if you are the type of person who is familiar with how the internet works. As an online lender, LightStream exists in the digital space, and you only need to get forms you complete and sign from their website.
As one of the best auto loan providers, LightStream is great for customers who want auto loans that don’t place restrictions on the kind of car you want to buy. LightStream’s customer-friendly policies got top marks in the J.D. Power 2020 U.S. Consumer Lending Satisfaction Study for personal loans.
Click Here to Know More About LightStream Auto Loan Offers.
Capital One: Best One-stop Financial Institution
Capital one, like LightStream, is customer-centric as it prequalifies customers to allow them to check their rate through a soft credit check. Apart from allowing you to shop for the best auto loan rate for you, their soft credit check does not hurt your credit.
Capital one is the capital choice when you are looking for a lender with excellent auto loan options for new car loan or used cars loan. With Capital One, you can get your loan and buy your vehicle from the same place as Capital One’s auto loan works with 12,000 car dealers.
This car loan lender allows you to access as little as $4,000 and gives you access to search cars around you and how these cars could influence your fixed monthly payments. So, when you get the vehicle of your choice, you have information that can help you get a good deal from one of Capital One’s 12,000 dealers.
All you need to do to sign up for their loan is to take your prequalification information to a Capital One car dealer. You can get an approved dealer from the Capital One website and begin the full application process when you see cars you want, whether new cars or used vehicles.
↳ Best Feature?
One of the things borrowers fear when seeking auto loans is that their credit score, credit history, and credit report will take a hit. However, with Capital One’s soft credit check, this is not a problem, as you will be able to get an estimate of your auto loan without it affecting your credit report.
The auto loan that Capital One offers is a robust auto loan that presents approved dealers for its customers. These customers get loans and information, which will allow making the best use of the loans they get and the type of vehicle they will get.
↳ Who is it Best For?
This car loan is best for you if you want to get your loan and your vehicle from the same place. This option will save you from shopping for cars and attending to the loan at the same time.
In addition, this car loan affords you the option of a soft credit pull which allows you to maintain your credit score while having a good estimate of your auto loan rate.
Click Here to Know More About Capital One Auto Loan Offers.
Bank of America: Best Traditional Bank
When it comes to prestigious banks, Bank of America pretty much holds the torch above most banks. Apart from prestige, the Bank of America offers the Bank of America auto loans at competitive and impressive auto loan rates.
Bank of America’s options on its auto loans are quality options as they refinance car loans, provide used car auto loans, buyout, and private party loans. However, unlike LightStream, these loan options’ rate varies with new cars at 2.29%, used car at 2.49%, refinance loans 3.29%, and private party loans 5.49%.
Bank of America offers a minimum of $7,500 car loan, but a few conditions are attached to their loan offer. The vehicle must not be less than $6,000; the vehicle must not also be more than 10 years, must have traveled less than 125,000 miles.
It is easy to access a Bank of America car loan as you only need to apply online at no cost, and in addition, you can also get other benefits. However, you can only take advantage of these benefits if you are a Bank of America Preferred Rewards customer.
↳ Best Feature?
One of the best features of this loan is that you can get a 0.5% rate discount, but you have to be a preferred rewards customer to benefit. Also, being a preferred customer gives you a whole range of benefits that are not only limited to an auto loan.
It is easy to access a BofA car loan as you only need to apply online at no cost. Also, you can apply for a loan in any of their numerous branches if you are the type that prefers a physical branch.
↳ Who is it Best For?
Bank of America is best for people who prefer older banks and prefer a bank with a traditional bank branch they can approach for help.
Also, the bank is great for persons who need multiple options for their loans. The bank offers to refinance loans, provide used car auto loans, buyout, and private party loans.
Click Here to Know More About Bank of America Auto Loan Offers.
Carvana: Best Online Experience
