As of 2018, Americans have borrowed more than $1 trillion to finance their vehicles. According to a survey, around 85% of new cars are purchased with the help of auto loans, and the average cost per car is $31,000 approximately. While trying to find a lender, every individual’s preferences and their situation will be different. Several factors like competitive interest rates, types of loan, approval time, quality of customer care and resources, etc., help to narrow down the list while picking one choice from the top auto loan companies. Lenders can be broadly classified into three categories — online auto loan providers, big banks, and finance companies that provide loans to people with bad credit.
Here are some of the top auto loan companies in each of these categories.
Online auto loan services
- CarsDirect: It is one of the most popular companies for its car buying services. They also offer a portal for availing auto loans. They have a lot of customer-friendly applications. Another advantage of CarsDirect is that do not have a minimum or maximum limit for the loan amount. This offer applies to both new and used cars.
- MyAutoloan: This top auto loan company is ideal for first-time car buyers as they can connect with lenders for all types of loans. They also get to learn about good deals quite easily. Their pre-approval process has a quick turnaround and charges no fees for application.
- LightStream: This is an outstanding option for people with an excellent credit score. The interest rates start at 3.09% APR. Depending on the credit score, the borrower gets secured or unsecured loans on cars (new or used), RVs and even motorcycles. They stand out in the market as they give a $100 guarantee to unsatisfied customers who lodge their complaint within 30 days of getting a loan.
- US Bank: While most big banks shun borrowers who purchase cars from private sellers, US bank offers a lot of options. They also provide competitive interest rates on loans for used vehicles. Additionally, for “green cars,” they offer a discount of 0.5% on the interest rates to encourage people to purchase fuel-efficient cars. This category covers over 23 types of qualifying vehicles.
Loans for those with bad credit
- Auto Credit Express: These specialized lenders have an A+ rating from the Better Business Burea. They are a sensible choice for borrowers with bad credit. A lot of customers with bad credit are unable to get auto loans on new or fancy cars because of their credit scores. However, Auto Credit Express stands out as it offers no restrictions on the loan amount, vehicle age, mileage, etc.
- Capital One: They are one of the top auto loan companies willing to work with customers with weak credit scores. With over 12,000 dealers across the country, they have an extensive network of branches that accept Capital One financing. They have great online account management tools as well. This company even offers face-to-face meetings in some regions. Apart from this, they are one of the very few auto loan companies that lend money for vehicles that are more than ten years old or have covered a distance of 125,000 miles.