Author: Brianna King
When you’re in the market for a new or used car, you might be considering taking out an auto loan to make the purchase. An auto loan is a type of loan that’s specifically designed for buying a car.
Your auto loan will come with a certain interest rate, which is the percentage of the loan amount that you’ll be charged each year. This rate can vary depending on several factors, including your credit score, the type of car you’re buying, and the amount you’re borrowing.
We’ve compiled a list of the top 5 auto loans and rates available now. So take a few minutes to read over our list and find the best deal for you.
1. Consumers Credit Union
As one of the top 5 auto loans and rates, Consumers Credit Union offers financing up to 100% of your purchase. That means you can buy the car of your dreams without breaking the bank.
But that’s not all. they also offer a range of other benefits, including:
- A minimum rate of 5.19%
- Loan amounts that start at $7,500 (no maximum)
- Minimum credit score of 620
Pros
- Can take out larger loans
- Provides a discount for autopay
Cons
- Penalties for late payment
Credit requirements: The required credit score for Consumers Credit Union is 620.
2. PenFed Credit Union
If you’re in the market for a new or used car, you might want to consider PenFed Credit Union. They offer some of the best auto loans and rates around. For example, their minimum rate is 5.24%, and they offer loan amounts between $500 and $150,000. Plus, they have terms from 36 to 84 months. So regardless of your needs, they’re likely to have a loan that suits you.
Moreover, if you’re already a member of PenFed, you’re in luck—because you get bonus points for taking out a loan with them. So be sure to check them out before you go anywhere else.
Pros
- Low minimum loan amounts may apply to some terms.
- Application process is entirely online.
Cons
- Closing your loan necessitates membership
- Does not specify the minimum required credit score
3. Digital Federal Credit Union (DCU)
Digital Federal Credit Union (DCU) is a Massachusetts-based nonprofit organization that offers a variety of banking and lending products. If you’re eligible for membership, DCU can help you get behind the wheel of a new vehicle with one of their auto loan options.
What makes DCU great is that they have loan terms and rates that are among the most competitive in the industry. Loans for new and used vehicles range from $2,500 to $500,000, with a minimum rate of 5.74%. Repayment terms range from 36 to 84 months. DCU offers fast processing times with same-day approvals when possible – so you’ll know exactly how much you can borrow as soon as possible.
Pros
- Discount rates for loyalty, automatic payments, and energy efficiency
- The initial 60 days of the loan do not demand any payments.
Cons
- You must join the credit union to finalize the loan
- Funding may take more time compared to other lenders
4. USAA
USAA offers loan amounts ranging from $5,000 to $500,000 and has repayment terms from 12 to 84 months. This loan option offers a minimum rate of 4.74%, and if you’re approved, you may have the funds within 24 hours, which is great if you need your money quickly.
USAA also offers a few other perks that come with taking out an auto loan. You can get pre-approved online and start shopping right away, as well as receive free quotes for any additional car purchases or refinancing options. Plus, you can check your rate in minutes so that you don’t waste time waiting or having to wade through paperwork. All in all, USAA offers an auto loan and rates package that could be a great option for anyone looking for a convenient, flexible way to finance their car purchase.
Pros
- 25% autopay discount
- Even borrowers with bad or fair credit may be eligible
Cons
- Charges late fees
- Poor Trustpilot reviews
5. LightStream
LightStream is another top auto loan lender to consider. It offers loans from $5,000 to $100,000 with terms from 24 to 84 months. Loan repayment lengths depend on the amount you borrowed and the specific vehicle you are purchasing. It also has a minimum credit score of 660, so if your credit isn’t that great then this may not be a good fit for you. Unlike some other lenders, LightStream has no fees associated with taking out an auto loan so you won’t have to worry about additional costs when borrowing money through them.
The minimum rate offered by LightStream is 6.49%, which is great for those looking for a competitive rate on their auto loan. Plus, you can get your loan funded as soon as the same day if you qualify so it’s a great option for those who need their vehicle as soon as possible.
Pros
- Same-day funding
- There are no late fees or prepayment penalties.
Cons
- Must have a good credit
Final Remarks
Now that you’ve weighed your options, it’s time to make a decision and choose the right auto loan for your situation. Whichever loan you end up selecting, it’s important to remember to carefully read the fine print. Look at the interest rate and make sure that it is competitive and cost-effective. Make sure you double-check the repayment schedule, late payment fees, and any other important details that could affect your overall financial responsibility.