One giant barrier to buying a car is funding the purchase. Car loans, however, can benefit you to finance a vehicle over a period of time. These financial utensils allow you to break up the cost of a car into reasonable monthly payments. Before you purchase a vehicle, it’s important to shop for a low-interest rate on your auto loan. If you currently have a car, refinancing into a lower rate can even diminution your monthly payment.
Best Auto Loan Rates of 2021
01. PenFed Credit Union
Company Website : https://www.penfed.org/auto/
Best For : Overall
Min. Credit Score : Not disclosed
Estimated APR : As low as 1.39%
Min. Loan Amount : $500
Max Loan Amount : $100,000
Term Length : 36 to 84 months
02. Bank of America
Company Website : https://www.bankofamerica.com/auto-loans/
Best For : Bank Loans
Min. Credit Score : Not disclosed
Estimated APR : As low as 2.59%
Min. Loan Amount : $7,500 ($8,000 for Minn.)
Max Loan Amount : Not disclosed
Term Length : 12 to 75 months
03. Consumers Credit Union
Company Website : https://consumer-credit-union.4cna.net/
Best For : Credit Union Loans
Min. Credit Score : Not disclosed
Estimated APR : As low as 2.69%
Min. Loan Amount : None
Max Loan Amount : None
Term Length : 0 to 84 months
04. myAutoloan
Company Website : https://www.myautoloan.com/
Best For : Bad Credit
Min. Credit Score : 575
Estimated APR : As low as 2.49%
Min. Loan Amount : $8,000 ($5,000 for refinance)
Max Loan Amount : Not disclosed
Term Length : 0 to 84 months
05. AUTOPAY
Company Website : https://www.autopay.com/
Best For : Refinance
Min. Credit Score : Not disclosed
Estimated APR : As low as 1.99%
Min. Loan Amount : $2,500
Max Loan Amount : $100,000
Term Length : 24 to 84 months
How Can You Get the Best Auto Loan Rate:
- Shop around for rates and comparison your credit union with what the dealer is offering.
- Work on cultivating your credit score.
- Pay your bills on time.
- Have consistent employment with a short debt to income ratio.
- Price shop cars; some vehicles that traders want to get rid of will come with a special rate.
How You Chose the Best Auto Loan Rates:
We designated these best auto loan rates based on their actual rates, fees, application process, credit requirements, and more. To choose the lenders featured on this list, we evaluated loan offerings from 25 different auto lenders using several criteria. First, we observed at auto loan rates, particularly the APR, and loan options available to borrowers. We also measured loan amount ranges, loan types offered, repayment term options, and credit score requirements. Only companies with a solid reputation were considered. We then studied customer service satisfaction and each lender’s national influence.
Obtaining a low auto loan rate can save you money over the life of your loan. Before you start shopping for a vehicle, get quotes from several different lenders. Consider looking at credit unions, banks, and nonbank lenders for the best rates.
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