The Best New Car Loans of 2023

If you want to shop for multiple loan providers at once, check out Auto Credit Express. It’s not a lender itself, but it can pre-qualify you for loans with multiple lenders. That way, you can shop the entire market in one place without filling out a million online forms.

Good for Bad Credit

If you have bad credit, expect to find higher APRs. You’ll be considered less trustworthy than someone with good credit. Some loan providers have minimum credit scores and won’t cover you at all if you don’t reach their threshold. Auto Credit Express is ideal for someone with bad credit. While APRs, loan amounts, and terms will vary by lender, you can find an auto loan from Auto Credit Express if you can prove the following:

• At least half a year at your current job
• At least three years of work history
• No large gaps in your employment
• Monthly income of at least $1,500 to $2,000 from a single source
• A working landline or cell phone contract in your name
• Residency
• 6-8 personal references, including their phone numbers, names, and addresses

Auto Credit Express also has options for people with no credit and people who have filed for bankruptcy.

Great Ratings

Auto Credit Express has accreditation and an A+ rating from the is accredited by the Better Business Bureau (BBB). The company’s rating is partly based on the following factors.

• Advertising issues: Auto Credit Express is truthful in its advertising and uses the BBB name correctly.
• Amount of time in business: Auto Credit Express’s 23 years in business speak to its reliability.
• Complaint history with the BBB: The company has only had 10 closed customer complaints in the past three years, and two closed in the last year. This is a low number compared to other loan aggregation companies.
• Failure to honor BBB commitments: The BBB does not list any mediations or arbitrations that it has failed to settle with Auto Credit Express.

Military Financing

If you’re an active member of the military, reservist, veteran, or family member of any of those, you could receive special military financing and discounts. You’ll see lower APRs and down payments, better loan terms, and more approvals.¹ While you’re at it, check out the best auto insurance for those connected to the military.

Like Auto Credit Express, LendingTree is an auto loan aggregation service that lets you view multiple offers from different lenders at once. LendingTree is better for those with good credit, as it offers the lowest interest rates of any service we’ve seen, with APRs starting at 0.99 percent. Not everyone will qualify for this super-low APR, but if you have a great credit score, LendingTree is a fantastic option.

Low APRs

LendingTree has the lowest minimum APR we’ve seen from any loan provider or loan aggregator, at only 0.99 percent. This is a solid option for someone who has great credit, is gainfully employed, and has a high income. If that’s not you, keep in mind that LendingTree doesn’t have a minimum credit score requirement and can connect you with a provider that will accept your score or lack of score.

Variety of Term Lengths

Since LendingTree lets you shop multiple lenders at once, you’ll be able to find loan terms from 12 to 84 months, or one to seven years. Of course, the longer your loan term, the smaller your monthly payment will be. However, a longer term length will result in more interest payments, so if you’re in a good spot financially, we recommend getting a short-term loan with a low APR.

Wide Range of Loan Amounts

Your loan amount will depend on your provider, but you can get up to $4 million from LendingTree, which is more than enough for the majority of American drivers. Another way to look at a loan amount is the loan-to-value (LTV) ratio. LendingTree has providers that offer up to 125 percent of your vehicle’s value. That means that if you total your car, you’ll receive 25 percent more than its current value to pay for a new car. This is helpful because your car’s value will have depreciated from when you first purchased it.

Instead of shopping for an auto loan from companies you’re unfamiliar with, you can always have your current bank finance your vehicle. If you’re already a Bank of America rewards member, consider it a possible auto loan provider.

Discounts for Members

If you’re already a member of Bank of America’s Preferred Rewards program, you can enjoy discounts on your auto loan anywhere from 0.25 to 0.5 percent, depending on your membership level.

Membership is available in all parts of the U.S., including Washington, D.C. You’ll benefit from Bank of America’s 240 years in business and the same customer service you already enjoy as a member.

Easy and Fast Approval Process

Applying for an auto loan from Bank of America only takes a minute. Simply provide the following information online:

• Loan type
• Car year
• Make
• Model
• Mileage
• Trim
• Vehicle identification number (VIN)
• Loan amount (between $7,500 — or $8,000 in Minnesota — and $9,999,999.99)
• Loan term (48, 60, or 72 months)
• Name
• Address
• Phone number
• Email address
• U.S. citizenship status
• Social Security number
• Date of birth
• Employment status
• Employer name
• Occupation
• Time employed
• Yearly income
• Housing status
• Monthly housing payment

Once you get approved, the offered amount will be locked in for 30 days, so you have time to think about it without losing the best interest rates. You can finish the process entirely online.

Trustworthy Institution

BoA has been in business for 240 years. It is BBB-accredited with an A+ rating, and one of the advantages of going with a traditional bank is its reliability. BoA has been BBB-accredited since 1949.

BoA has a high number of customer complaints due to its vast customer base, but it has closed 7,000 of them in the past three years, and 2,495 of those in the past 12 months. While customer complaints are inevitable, we appreciate how BoA resolves them.

Some people use credit unions rather than traditional banks as their financial institutions. If you prefer a credit union to a bank or traditional lender, consider Pentagon Federal Credit Union, or PenFed. With an A+ rating from the BBB and a 4.6 out of five on Trustpilot³ PenFed is a trustworthy auto loan provider.

Monthly Savings

On average, people who get their auto loans from PenFed save $334.17 a month. With loan terms anywhere from 36 to 72 months, the union offers an average APR of 3.44 percent for new cars and 4.84 percent for used cars. Rates will be lower if you select a shorter term.

Add-ons

PenFed offers other financial protections aside from auto loans.

• Gap insurance: Did you know vehicles lose 10 percent of their value as soon as you drive them off the lot, plus another 15 to 25 percent each year on average?⁴ If your car is totaled and you lack gap insurance (“gap” standing for “guaranteed asset protection” in this case), you’d be responsible for the remainder of the loan. That’s why PenFed offers this insurance — to cover the difference between the car’s actual cash value and its loan amount. PenFed members receive an additional $1,000 toward the replacement vehicle for $449. The maximum loan amount is $100,000 with a maximum 84-month term and a maximum gap loss of $50,000.
• Deductible reimbursement: Along with gap insurance, you’ll get a deductible reimbursement of up to $500, so long as your vehicle is owned, titled, registered, and insured. It even covers unlimited losses within a year, so you can get reimbursed for $500 of your comprehensive or collision deductible.
• Extended vehicle coverage: Your manufacturer’s warranty may not offer enough protection or a long enough term. To supplement it, you can buy an extended warranty from PenFed.

• Debt protection: What happens if you experience a death, disability, firing, or layoff and can’t pay your auto loan? PenFed offers debt protection for these cases. If you were laid off from your job, for example, debt protection would cancel your loan balance and payments without any added interest or penalties.

Online Application

Getting an auto loan from PenFed is easy, and you can do it without leaving your seat. On their website, choose between a new or used vehicle loan. Then, complete a quick quiz about where you purchased your vehicle, the total amount you’d like to borrow, the term length you’d like, and some information about yourself, including your name, email, mobile phone number, address, birthday, Social Security number, employment status, income, and more.