Best Auto Loans for 2019

If you are in the market to buy a new car, you may be trying to figure out how to pay for it. Not only should you look for a fair price on a new or used car, but you should also look for a good interest rate on your auto loan if you need one.

The strength of the economy combined with increased competition from online and non-traditional auto lenders have made it easier to get approved for an affordable auto loan when the time comes. There are several options in the market today, and consumers need to shop around and compare offers from more than one lender to ensure they get the best deal.

In this guide:

• Compare Auto Loan Companies
• Best Auto Loans of 2019
• What to Look for in an Auto Loan
• How to Get the Best Auto Loan Rates

Compare Auto Loans for 2019

Whether you are looking for a new or used car, review the best auto loan deals below to see what may work best for your car buying needs.

Best Auto Loans of 2019

Each of the following auto loan lenders provides options for buyers interested in financing their next car purchase. Information about the interest rates, loan amounts, and credit qualifications are listed to make your decision easier.

Select a lender in the list below to learn more about their auto loans:

• LightStream
• AutoPay
• myAutoloan
• CarsDirect
• Wells Fargo
• Bank of America
• Alliant
• Navy Federal Credit Union
• Chase
• DCU
• Auto Credit Express

LightStream

As a division of SunTrust Bank, LightStream is a reputable lender offering auto financing to qualified borrowers. LightStream auto loans do not require a minimum annual income but there are other credit criteria borrowers should consider before submitting an application online. Those include:

• Minimum credit score of 660
• ​Repayment terms ranging from 24 to 84 months, depending on the year of the vehicle and amount financed
• ​Minimum loan amount of $5,000
• Maximum loan amount of $100,000
• Interest rates ranging from 3.99% to 12.24% with automatic payments established

Pros

• No fees for applying or accepting an auto loan
• ​No restrictions on the age or type of car
• Same-day approvals possible

Cons

• Borrowers with bad credit may not qualify
• A hard inquiry is required to check your credit

AutoPay

AutoPay is an online lender newer to the auto financing market. The finance company offers an array of car loans for borrowers with a range of income and credit qualifications, with the following terms:

• Minimum credit score of 600
• ​Minimum annual income of $24,000
• ​Repayment terms ranging from 24 to 84 months, depending on the year of the vehicle and amount of the loan
• ​Minimum loan amount of $7,500
• ​Maximum loan amount of $100,000
• Interest rates ranging from 2.19% to 17.99% depending on credit score and income

Pros

• Borrowers can compare rates from different lenders
• ​No Social Security number is required
• ​No application fees or prepayment penalties
• Pre-qualification in minutes
• Loan offers available for up to 30 days

Cons

• Minimum credit score and income required
• ​Higher loan terms can lead to paying more interest
• Interest rates may be higher than comparable lenders

myAutoloan

Another online lender, My Auto Loan, offers auto financing for borrowers in the market for a new or used vehicle. The finance company offers the following terms to qualified borrowers:

• Minimum credit score of 500
• ​Minimum annual income of $21,000
• ​Repayment terms ranging from 24 to 72 months
• ​Minimum loan amount of $8,000
• Maximum loan amount of $100,000
• Interest rates ranging from 2.19% to 24.99%

Pros

• No application fees
• ​Helpful resources for first-time car buyers
• ​Financing for private purchases and leased vehicles
• Financing options for those with bad credit

Cons

• Requires a hard credit pull
• Other lenders may have access to your contact information

CarsDirect

CarsDirect is another online company that provides auto loans to qualified borrowers. This lender stands out because there is no minimum credit score requirement. However, there are other credit requirements borrowers must meet:

• Minimum income of $500 per week
• ​Repayment terms vary depending on the year of the vehicle, amount financed, and borrower’s credit history
• ​No minimum or maximum loan amount limitations
• Interest rates vary depending on the credit history, down payment, and amount financed

Pros

• Good option for those with older or less expensive vehicles
• ​Finds dealer financing options
• ​Financing for those with less than perfect credit
• Online tools available at no cost

Cons

• Buyers must deal directly with the dealership to secure financing
• Can expect to receive calls from other lenders

Wells Fargo

Wells Fargo is a global financial institution that offers affordable car loans to qualified borrowers. There is no minimum income requirement, but there are other credit criteria borrowers must meet to be eligible:

• Minimum credit score of 650
• ​Repayment terms ranging from 12 to 72 months
• ​Minimum loan amount of $5,000
• ​Maximum loan amount of $100,000
• Interest rates range from 3.89% to 10.51%

Pros

• Quick application process and fast approval
• ​Pre-approvals available
• ​Competitive rates for highly qualified borrowers
• Financing for private party and lease purchases

Cons

• Origination fee of $99
• ​48-month maximum term for older vehicles
• APR isn’t available until an application is submitted

Bank of America

As one of the nation’s largest financial institutions, Bank of America is well-known for its lending solutions, including auto loans. Borrowers do not have to meet a minimum income requirement, but there are other credit requirements that must be met in order to be eligible for a new Bank of America auto loan:

• Minimum credit score of 580
• ​Repayment terms ranging from 12 to 60 months
• ​Minimum loan amount of $5,000
• ​Maximum loan amount of $100,000
• Interest rates start as low as 2.84%

Pros

• Some of the lowest interest rates available
• ​No fees or prepayment penalties
• ​Quick and easy online application, plus more than 5,000 branch locations
• Loan discounts available for certain customers

Cons

• No online pre-approval available
• ​Borrowers won’t know the APR until an application is submitted
• ​Down payment may be required
• No financing for independent dealer purchases

Alliant

Another pick for the best auto loans is Alliant, a financial services company focused on personal lending. There is no minimum credit score or annual income requirement for borrowers. However, there are other terms borrowers should be aware of before selecting this as an auto financing option:

• Repayment terms range from 12 to 84 months
• ​No minimum or maximum loan amounts
• Interest rates start as low as 2.24% depending on credit history and amount financed

Pros

• APRs below industry average
• ​Same day pre-approval possible
• ​No origination or prepayment fees
• No minimum income requirements

Cons

• Borrowers must first be members of the Alliant Credit Union
• Interest rates may be higher for less qualified borrowers

Navy Federal Credit Union

As the largest credit union in the world, Navy Federal Credit Union is well-known for its member-first services. The financial institution offers a variety of auto financing options for well-qualified borrowers, with the following requirements and terms:

• Minimum credit score of 700
• ​No minimum annual income
• ​Repayment terms up to 96 months, depending on the year of the vehicle and the amount financed
• ​No minimum or maximum loan amount
• Interest rates range from 1.99% to 17.99%

Pros

• Some of the lowest possible interest rates on the market
• ​Easy online application
• Interest rate discount available for certain members

Cons

• Borrowers must first be members of the Navy Federal Credit Union
• Difficult to qualify for the best possible interest rates

Chase

Chase Bank is most widely known for its rewards credit card options, but the financial institution also offers car loans. Chase has a variety of auto financing options available with the following terms and qualification criteria:

• Minimum credit score of 650
• ​No minimum annual income requirement
• ​Repayment terms ranging from 48 to 72 months
• ​Minimum loan amount of $7,500
• Maximum loan amount of $100,000
• Interest rates ranging from 2.49% to 24.99%

Pros

• No loan fees
• ​Competitive interest rates
• ​Options for borrowers with less than perfect credit
• Car search service available online

Cons

• Shortest loan term is 48 months
• ​No pre-approval available online
• APRs vary based on state of residence

DCU

DCU is a credit union located in the Northeast, and it offers a range of auto financing solutions to its members. There is no annual income requirement for a DCU car loan, but there are other terms and eligibility criteria of which borrowers should be aware:

• Minimum credit score of 650
• ​Repayment terms up to 84 months
• ​Minimum loan amount of $5,000
• ​Maximum loan amount of $50,000
• Interest rates start as low as 2.24%

Pros

• Highly competitive car loan rates
• ​Loan terms up to 84 months
• ​Both new and used cars qualify for the lowest possible rates
• Discounts on energy-efficient vehicles

Cons

• Requires membership to apply
• ​Must have a DCU checking account for the lowest possible rates
• Maximum loan amount is less than other lenders

Auto Credit Express

Another online lender offering car loans is Auto Credit Express. The finance company does not have a minimum credit score requirement like other car loan lenders, but there are other eligibility criteria which must be met to qualify:

• Minimum annual income of $18,000
• ​Repayment terms range from 36 to 72 months
• ​No minimum or maximum loan amounts
• Interest rates vary depending on credit history, down payment, and amount financed

Pros

• Access to a large network of lenders and dealers
• ​Work with subprime borrowers
• Easy process to apply and accept new loan

Cons

• Interest rates can be high if credit is bad
• Individuals with good credit should look elsewhere for better rates

What to Look for in an Auto Loan

Before applying for an auto loan, it is important to know what you should pay attention to when selecting the right lender for your auto financing needs. First and foremost, be cognizant of the interest rate offered by your lender of choice. The interest rate dictates how much you will pay over the life of the loan in addition to the original amount financed. A higher interest rate means you pay more for your auto loan.

In addition to the interest rate, you should also look at qualification requirements, including minimum income, minimum credit score, and vehicle requirements.

Borrowers should also review the strength of the financial institution offering auto financing, along with the term length of the loan and payment options. Each of these factors plays a role in how well the car loan used to purchase a new or used vehicle fits into your financial life.

How to Get the Best Auto Loan Rates

There are several steps you can take to ensure you get the right car loan with the best rate for your next vehicle purchase.

• Shop the loan, then the car. Obtain financing or a pre-approval from an auto lender before heading to the dealership so you can focus on negotiating on the vehicle purchase itself.
• ​Know your credit. Your credit history and score will dictate how much you pay in interest over the life of your auto loan. Check your credit report beforehand to make sure you are in the best financial position to get an affordable car loan.
• ​Look for an interest rate discount. Some financial institutions offer interest rate discounts on auto loans. These may be available for having a qualified account or establishing automatic payments once the loan is approved.
• ​Select a shorter loan term. Shorter repayment terms may help you save on the total interest paid over the life of the loan, and it may allow for a lower interest rate offered. However, a shorter repayment term also means a higher monthly payment, so be sure to check your budget first.
• ​Avoid variable auto loan rates. Some lenders may offer a variable interest rate loan, in which the interest rate changes over time as broad interest rates move up or down. A fixed interest rate loan may be a better option if you want predictability with your payments and the total cost of borrowing.
• Consider a down payment. Putting down a few hundred to several thousand dollars when purchasing a car can help reduce the total amount you finance, and therefore, pay interest on.
• ​Check out dealer financing. Some dealerships will offer exclusive financing offers on certain vehicles. This can provide a much lower interest rate than banks or credit unions, but be sure to compare.
• Work with select dealerships. Some auto dealers have preferred relationships with specific lenders. This can make it easier to qualify for a new auto loan with an affordable rate.

Bottom Line

There are car loan options for borrowers with just about any credit history, income, and vehicle financing needs. However, finding the right one can be a challenge if you don’t know where to start. Be sure to shop around and consider all of your auto loan offers or options before making your decision.