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Available across the U.S. and Canada, Auto Credit Express offers loans for those with good or bad credit, with high ratings from the Better Business Bureau and TrustPilot.
With LendingTree, you can shop the entire market at once to compare APRs, loan amounts, and term lengths from multiple providers. Interest rates start at only 0.99 percent, the lowest we’ve seen from any car loan provider.
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If you can’t afford to pay for a new car all at once (not many people can), you’ll need to take out a car loan. When you shop for new car loans, you have a few options: You can get dealer financing, bank financing, credit union financing, or financing from an online lender like Capital One. We recommend shopping the entire market and avoiding dealership financing, which tends to have the highest interest rates.
Auto loan providers offer different rates depending on your credit history, vehicle, income, and other factors. The same provider might offer different annual percentage rates (APRs), term lengths, and loan amounts to different people. The following providers are the best for new car loans in general, but to find the best loans for your needs, you’ll need to apply and get pre-qualified.
Best New Car Loans Overall: Auto Credit Express
Best New Car Loans for Interest Rates: LendingTree
Best New Car Loans From a Bank: Bank of America
Best New Car Loans From a Credit Union: PenFed Credit Union
Insurance company | #1. Auto Credit Express | #2. LendingTree | #3. Bank of America | #4. PenFed Credit Union |
---|---|---|---|---|
Best for | Overall | Lowest interest rates | Bank loans | Credit union loans |
Age of the company (in years) | 23 | 26 | 240 | 87 |
Loan provider or aggregator | Aggregator | Aggregator | Loan provider | Loan provider |
Loan term | Varies by lender | 12-84 months | Not disclosed | 36-72 months |
Minimum APR | Varies by lender | 0.99% | 3.89% | 4.24% for new cars, 50.4% for used cars |
Loan amounts | Varies by lender | Varies by lender, but up to $4 million or a maximum LTV ratio of 125% | Minimum $7,500, or $8,000 in Minnesota | $500-$150,000 |
BBB accreditation? | Yes | Yes | Yes | No |
BBB rating (A-F) | A+ | A+ | A+ | A+ |
Trustpilot rating (out of 5) | 4.6 | 4.6 | 1.3 | 4.6 |
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.
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:
Auto Credit Express also has options for people with no credit and people who have filed for bankruptcy.
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.
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.
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.
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.
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.
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.
Factor | Gold | Platinum | Platinum honors |
---|---|---|---|
Combined balance range in BoA deposit and/or Merrill investment accounts | $20,000-$49,999 | $50,000-$99,999 | $100,000-$1,000,000 |
Car loan interest rate discount | 0.25% | 0.35% | 0.5% |
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:
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.
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.
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.
PenFed offers other financial protections aside from auto loans.
Feature | Easy Street Protection for Newer Cars | Easy Street Protection | Main Street Protection |
---|---|---|---|
Eligible vehicle model years | 2 or newer | 8 or newer | 8 or newer |
Eligible miles on odometer | 0-15,000 | 75,000 or under | 75,001-125,000 |
Length of coverage | 6 years or 100,000 miles, whichever comes first | 5 years or 100,000 miles, whichever comes first | 3 years or 36,000 miles, whichever comes first |
24-hour roadside assistance | Yes | Yes | Yes |
Reimbursement for repair costs after manufacturer’s warranty expires | Yes | Yes | Yes |
Towing | Yes | Yes | Yes |
Rental car reimbursement | Yes | Yes | Yes |
Pricing for standard vehicles | $995 | $1,495 | $1,495 |
Pricing for premium and hybrid vehicles | $995 | $2,995 | $2,995 |
Feature | Death | Involuntary unemployment | Disability |
---|---|---|---|
Plan 1 coverage | Yes | Yes | Yes |
Plan 2 coverage | Yes | No | Yes |
Plan 3 coverage | Yes | No | No |
Aggregate loan balance canceled | $70,000 | $24,000 | $15,000 |
Maximum monthly loan balance canceled | N/A | $1,000 | $1,000 |
Maximum number of payments canceled per occurrence | N/A | 6 | 12 |
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.
To compare the best new car loan providers, we looked at information from the providers/aggregators directly, as well as third-party ratings from the Better Business Bureau and Trustpilot, which aggregates customer reviews from across the internet. The company information we analyzed included the following:
We analyzed private-party auto financing, auto lender aggregation services, and companies that offer a car-buying service. Exact loan offers will depend on your vehicle, credit report, and other factors. We prefer lenders with low APRs, flexible terms, and a wide range of loan amounts.
A good rate for a new car loan right now is 1.79 percent for a 36-month term. As the term length increases, so does the APR, according to data from the Navy Federal Credit Union.
Term | 36 months | 37-60 months | 61-72 months | 73-84 months | 85-96 months |
---|---|---|---|---|---|
New vehicle APR | 1.79% | 2.19% | 2.29% | 4.69% | 5.59% |
It’s better to get an auto loan from a bank than a dealership. Shop around for the lowest APRs from different auto loan providers. While getting an auto loan from a dealership is more convenient, finance charges can be high, and advertised low interest rates may only apply to those with good credit scores.
Whether or not it’s smart to pay off a car loan early depends on your loan provider. Some lenders will charge you fees for prepayment. However, if your lender doesn’t have a prepayment penalty, it is smart to pay off a car loan early to avoid paying more interest.
With a 750 credit score, you can get a car interest rate at around 3.65 percent for a new vehicle, according to Experian data.
Military Auto Loans. Auto Credit Express. (2022).
https://www.autocreditexpress.com/leasing_and_financing/auto_loans/military_auto_loans/
Business Profile – Bank of America. BBB. (2022).
https://www.bbb.org/us/nc/charlotte/profile/bank/bank-of-america-0473-100421
PenFed Credit Union. Trustpilot. (2022).
https://www.trustpilot.com/review/penfed.org
Car Depreciation: How Much It Costs You. Carfax. (2021, Feb 3).
https://www.carfax.com/blog/car-depreciation