One of the biggest points of concern when it comes to buying a car is getting an auto loan at an affordable rate. While the loan can make it easier for you to break up the total cost of the car, you could easily end up paying thousands of dollars in interest alone if you don’t pick an affordable loan. So, we’ve researched different auto loans available in the market currently and listed the ones that have the best rates.
PanFed Credit Union: PanFed offers some of the best rates on car loans. The APR can go as low as 1.39%. What’s more, the lender also offers loans for new and used cars and refinance loans as well. You can borrow an amount equal to 110% of the car’s value. The only downside is that the lender has a high minimum loan amount, especially if you choose a longer loan term. Membership with PanFed is also required to be approved for a loan.
Bank of America: Bank of America is a leading bank in the country that offers loans for new and pre-owned cars, along with refinance loans. The lender also offers competitive rates that can go as low as 2.69%. That said, one thing you should keep in mind is that Bank of America has certain restrictions with regard to which vehicles it will finance.
Consumers Credit Union: Consumers Credit Union offers rates as low as 2.69% to its members. There are also no restrictions regarding the minimum or maximum loan amount. The lowest rates, however, require members to have excellent credit.
LightStream: Lightstream is the online lending division of SunTrust Bank. The APRs offered by the lender start at 3.49%. Repayment terms can range between 24 to 84 months. However, an important factor to take into consideration with LightStream is that the lender only allows online applications.
Although the above-listed loans offer affordable rates, keep in mind that the best way to lower the interest rate is by improving your credit score. So, make sure to check your credit score before you start shopping for a loan and work towards improving it if you find that it isn’t in the best shape.