By Catalin Constantin
An auto loan may be the best financial option when you buy a car, especially if you do a good research and find the best auto lender.
There are plenty of available auto loan companies on the market who will fight to have you as a customer, either for buying a car, or refinance an existing loan.
Refinancing the car loan is a good option – and a fast and easy one. It can get some of the burden off your shoulders for the rest of the remaining payment period, by reducing your monthly payment. In this way, you will get to save more money on the overall span of the car loan.
While the initial car loan conditions are known to the customer, for refinancing the loan they will need a good history of at least six on-time payments. Then, a new rate will be determined based on factors like the credit history and the credit score.
But which are best auto loans to take this year, based on your need? Below is a list of different types of loans, and the best institutions:
Best option for refinancing.
Speaking about refinancing, this happens in situation when the financial conditions have changed. For example, your income is higher now, the credit score is better, and you already payed a part of the debt. So, you should enjoy better interest and better rates.
OpenRoad Lending is the best solution to refinance the existing loans and save important money along the way. The minimum interest rates are 1.99%, and the minimum monthly income is $1,500.
Another option according to reviews is AutoPay, which offers multiple refinance options and considers all credit profiles, but still offers the best rates for excellent credit scores. It also has the minimum interest rates at 1.99%, while the minimum loan amount is $2,500.
Best auto loan for a bad credit.
There are multiple companies which are considered the best for getting an auto loan if you have a bad credit. One of them is MyAutoLoan, which has an APR for a new car starting from 3.49%, and is the best when it comes to multiple loan offers. The recommended credit score is 575, but not the minimum, while the loan amount is at least $5,000 for refinancing.
Best big bank lender.
If you are not comfortable with a financial institution which deals only car loans, or you don’t know very well who are they and you want a major financial institution, the best choice is Capital One. The preapproval can be done online, and the letter is then valid at more than 12,000 dealers in the United States. It has a minimum purchase APR of 3.39%, and a minimum purchase loan of $4,000. The minimum credit score is 500, which makes it excellent for bad credit auto loans. For all the details about Capital One car loans, read an in-depth review here.
Best auto loan overall.
Bank of America has an APR range as low as 2.69%, in the case of a new car, and is available in all states. It has transparent rates and terms online, it offers also used cars loans and refinance auto loans, and is a very well-known financial institution. The minimum loan amount is $7,500.
Best rates overall.
The lowest interest rates may attract many customers. One example is Consumers Credit Union. Credit unions usually have lower interest rates comparing to banks, and in this case, it starts from 2.69%. In return, your credit score should be at least 640. But in the end this choice may pay off if you are looking for a long term loan.
Best online auto loan.
If you want to get your auto loan online, the best option is Lightstream. It offers a completely online process, with the forms e-signed and the money received via deposit as soon as 24 hours. Lightstream also offers a discount of 0.5% with auto pay. There are no restrictions when it comes to the car or the mileage of a used vehicle, and if you have excellent credit score, you can get an unsecured loan. The minimum APR is 3.49%, while the minimum loan amount is $5,000.