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Best Auto Loan Rate

by Violet WillettJanuary 28, 2021
Best Auto Loan Rate

Buying a car is a monumental decision and quite an investment. In many cases, getting some help is more than necessary to see this dream turn into a reality. But one of the most important questions remains––How do you pay for it? Moreover, should you get an auto loan?

Although personal loans can be used to buy a car, auto loans are advised as they are specific to this particular purchase. This makes them easier to qualify for, with lower interest rates and less additional fees. 

Also, your car will serve as its own collateral and you may be eligible for an auto loan even with poor credit. In fact, auto loans may actually help build your credit score and history.

Once you have come to an agreement with a lender, you may be able to negotiate payments so that you know what to expect. Since the repayment scheme is customizable, you can pay within your means. 

Prior to seeking out which loan works for you, it is advised to get an idea of today’s rates so that you can go into the process with your eyes wide open. You do not want to be overpaying or biting off more than you can chew. Here are some of the best auto loan rates available in 2021:

Consumers Credit Union

With Consumers Credit Union, you will not have to worry about a minimum or maximum amount for your loans. They also have loans for new, used, and refinancing, with an APR range starting at 2.69%. Repayment terms are between 0 to 84 months nationwide. To get this loan, all you need to do is become a member for as low as $5. 

Eligibility requirements include credit report and score, as well as vehicle information. If you choose to do autopay with them, you can get a 0.5% discount. Finding out more information about this credit union is simple, as they are very transparent about their terms and rates. 

Oportun

Making purchases via a private party can get you a better deal, and Oportun allows you to get loans from these dealers. Those who are new to credit do not have to fret as the minimum credit scores to qualify for loans with Oportun is 500, but you need a $2,000 monthly income. They have small loans that start as low as $300.

The application process with this lender is 100% online and you can get your results almost instantly. However, rates are slightly higher at an estimated 19.9% to 35.99%, while Oportun’s loans are only available in some states. Borrowers will also have to expect fixed payment dates. 

Carvana

Borrowers who are on the fence about negotiating may opt for Carvana, because there is no negotiation involved. They conduct their operations fully online. There is no minimum for both loan amounts and credit requirements. However, borrowers will get the lowest rates when they have better credit. APR begins at 3.9%. 

Certain barriers to entry include a minimum income of $4,000 every year along with having no active bankruptcies. You can get an idea of your monthly payment scheme with their loan calculator, which is based on factors such as your credit score and loan details. 

PenFed Credit Union

PenFed Credit Union has some of the lowest rates, beginning at 1.39% for new cars, and 2.24% for used ones. Auto loan rates begin at 2.99%, and refinancing starts at 2.14%. You may be able to get discounts if you use their car buying service. Repayment terms are 36 to 84 months and loans go for $500 to $100,000.

Prior to gaining access to the funds, you have to register for membership at the PenFed Credit Union and wait sixty days. Former military members can gain membership, but if not, all you have to do is donate to the National Military Family Association or to the Voices for America’s Troops. One caveat of this credit union is that while they have flexible loans, these have shorter terms.

LightStream

LightStream has offerings for every type of deal, whether it’s for private sellers, used cars, regular financing, or lease buyouts. While you may need to have relatively better credit scores, starting APR is 2.49% with autopay. New car loans have an APR of 4.94% to 10.39%, and you may be able to get a discount of 0.5% if you are on autopay. 

You can get a pending approval for your loan within the same day of your application, with amounts that are between $5,000 to  $100,000. Terms range from 24 to 84 months as well. 

If this is your first time purchasing a car of your own, knowing what to prepare for is a must. You can read more about ‘Getting A Car Loan’ to put you at ease, or contact us at AnyCredit today! 

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