You wouldn’t buy a car without comparing prices and options, so why would you do that with a loan?
When buying a car, finding the right auto loan is as important as finding the right vehicle. Comparing rates offered by different lenders can help you find the one with the lowest interest rate for your needs. Here are this year’s best auto loans for a variety of needs:
Best Overall: Bank of America
Bank of America currently offers competitive auto loan rates. Rates for a new car start at 2.09 percent APR, and rates for a used car can be as low as 2.29 percent APR.
Bank of America provides a variety of auto loans with competitive interest rates. Although lease buyouts may have higher interest rates than a new or used car loan, Bank of America’s lease buyout APRs begin lower than those of other lenders.
Best for Good Credit: Light Stream
Lightstream specializes in auto loans for customers with good to excellent credit. Its rates aren’t too high — interest rates range from 2.49 percent to 6.79 percent for a 36-month loan for a new car between $10,000 and $24,999.
Best for Poor Credit: Capital One
Capital One provides simple and reputable auto loans to individuals with credit scores of 500 or higher. For used cars, Capital One offers loans starting at $7,500.
Best for Used Cars: US Bank
US Bank will pre-approve your financing even if you haven’t chosen a vehicle yet. After you’ve decided on a vehicle, it’s time to finalize your loan terms. Note that the lender doesn’t specify a minimum credit score or a timeframe for receiving your funds.
Best for Credit Unions: Navy Federal Credit Union
One of the most appealing aspects of a Navy Federal auto loan is its low interest rates. Navy Federal also has an online Car Buying Center where you can learn about financing, buying, researching, and insuring a car.
Best for New Cars: PNC Bank
PNC provides excellent rates to borrowers with good credit. The bank will finance vehicles manufactured in 2014 or later. You won’t be able to get a loan from PNC if you want to buy an older car.
Borrowers with a poor credit history may have difficulty qualifying or face high interest rates.
