Lowest Auto Loan Rates – Securing an auto loan with the lowest possible interest rate is crucial for minimizing the total cost of your vehicle purchase. This comprehensive guide will help you understand the factors influencing auto loan rates, provide tips for securing the best rates, and list 20 companies offering some of the lowest auto loan rates in the USA. Additionally, we will include reviews, contact information, and answers to frequently asked questions to ensure you have all the information you need to make an informed decision.
Understanding Auto Loan Rates
What is an Auto Loan Rate?
An auto loan rate, often referred to as the interest rate, is the cost of borrowing money to purchase a vehicle. It is expressed as a percentage of the loan amount and can significantly affect the total cost of your car. Lower interest rates reduce the amount you pay over the life of the loan, making it essential to secure the lowest rate possible.
Factors Influencing Auto Loan Rates
Several factors influence the interest rates on auto loans, including:
- Credit Score: Higher credit scores typically result in lower interest rates. Lenders view borrowers with good credit scores as less risky, and thus, offer them better rates.
- Loan Term: Shorter loan terms generally have lower interest rates because the lender’s risk decreases over a shorter period. Conversely, longer loan terms might have higher rates.
- Loan Amount: Larger loan amounts may qualify for lower rates. This is because higher amounts often correlate with more creditworthy borrowers or more valuable collateral (the car).
- Down Payment: A larger down payment reduces the loan amount and lowers the lender’s risk, often resulting in a lower interest rate.
- Vehicle Type: New cars often have lower rates compared to used cars due to their higher value and lower risk of breakdowns.
- Lender Type: Banks, credit unions, and online lenders may offer different rates. Credit unions often provide more competitive rates compared to traditional banks.
Tips for Securing the Lowest Auto Loan Rates
- Improve Your Credit Score: Pay off debts, avoid new credit inquiries, and ensure all bills are paid on time to boost your credit score.
- Shop Around: Compare rates from multiple lenders to find the best offer. Online tools and comparison websites can help streamline this process.
- Choose a Shorter Loan Term: Opt for a 36- or 48-month loan instead of a 60- or 72-month loan. While monthly payments will be higher, you will save on interest over the life of the loan.
- Make a Larger Down Payment: Reducing the loan amount can qualify you for lower rates. Aim for at least 20% down payment to get the best rates.
- Get Preapproved: Secure a preapproval from a lender before shopping for your car. This not only shows you’re a serious buyer but also gives you a benchmark rate to negotiate against dealership financing offers.
Top 20 Companies Offering the Lowest Auto Loan Rates
Here are 20 companies known for offering some of the lowest auto loan rates in the USA, along with their website, phone number, and customer reviews.
1. LightStream
Website: LightStream Auto Loans
Phone Number: 1-866-998-6398
Customer Reviews:
- “Excellent service and very competitive rates.”
- “Fast and easy loan approval process.”
2. Bank of America
Website: Bank of America Auto Loans
Phone Number: 1-844-892-6002
Customer Reviews:
- “Smooth application process and great customer service.”
- “Competitive rates and easy to work with.”
3. Capital One
Website: Capital One Auto Finance
Phone Number: 1-800-689-1789
Customer Reviews:
- “User-friendly application and approval process.”
- “Helpful customer support and competitive rates.”
4. Chase Auto
Website: Chase Auto Loans
Phone Number: 1-800-336-6675
Customer Reviews:
- “Great rates and excellent customer service.”
- “Convenient online application process.”
5. Wells Fargo Auto
Website: Wells Fargo Auto Loans
Phone Number: 1-800-559-3557
Customer Reviews:
- “Easy to apply and quick approval.”
- “Helpful and knowledgeable staff.”
6. U.S. Bank
Website: U.S. Bank Auto Loans
Phone Number: 1-800-872-2657
Customer Reviews:
- “Competitive rates and great service.”
- “Straightforward application process.”
7. PenFed Credit Union
Website: PenFed Auto Loans
Phone Number: 1-800-247-5626
Customer Reviews:
- “Fantastic rates and easy application.”
- “Excellent customer support.”
8. Navy Federal Credit Union
Website: Navy Federal Auto Loans
Phone Number: 1-888-842-6328
Customer Reviews:
- “Great rates for military members.”
- “Quick and easy approval process.”
9. Alliant Credit Union
Website: Alliant Auto Loans
Phone Number: 1-800-328-1935
Customer Reviews:
- “Low rates and excellent service.”
- “User-friendly online application.”
10. SunTrust Bank
Website: SunTrust Auto Loans
Phone Number: 1-800-786-8787
Customer Reviews:
- “Competitive rates and flexible terms.”
- “Responsive customer service.”
11. PNC Bank
Website: PNC Auto Loans
Phone Number: 1-888-762-2265
Customer Reviews:
- “Good rates and straightforward process.”
- “Helpful and professional staff.”
12. USAA
Website: USAA Auto Loans
Phone Number: 1-210-531-8722
Customer Reviews:
- “Excellent rates for military families.”
- “Quick and hassle-free application.”
13. Ally Bank
Website: Ally Auto Loans
Phone Number: 1-888-925-2559
Customer Reviews:
- “Great rates and easy online process.”
- “Helpful and friendly customer service.”
14. Consumers Credit Union
Website: Consumers Credit Union Auto Loans
Phone Number: 1-877-275-2228
Customer Reviews:
- “Very competitive rates.”
- “Fast approval and excellent service.”
15. Fifth Third Bank
Website: Fifth Third Auto Loans
Phone Number: 1-866-671-5353
Customer Reviews:
- “Good rates and easy process.”
- “Friendly and knowledgeable staff.”
16. Digital Federal Credit Union (DCU)
Website: DCU Auto Loans
Phone Number: 1-800-328-8797
Customer Reviews:
- “Great rates and excellent member service.”
- “Quick and easy loan process.”
17. NASA Federal Credit Union
Website: NASA FCU Auto Loans
Phone Number: 1-888-627-2328
Customer Reviews:
- “Competitive rates and helpful staff.”
- “Seamless application and approval process.”
18. TD Bank
Website: TD Bank Auto Loans
Phone Number: 1-888-751-9000
Customer Reviews:
- “Low rates and flexible terms.”
- “Great customer service and support.”
19. Regions Bank
Website: Regions Auto Loans
Phone Number: 1-800-231-7493
Customer Reviews:
- “Competitive rates and easy application.”
- “Responsive and helpful staff.”
20. Huntington Bank
Website: Huntington Auto Loans
Phone Number: 1-800-480-2265
Customer Reviews:
- “Good rates and simple process.”
- “Excellent customer support.”
Detailed Reviews of Top Auto Loan Companies
1. LightStream
LightStream, a division of SunTrust Bank, is renowned for offering competitive rates to borrowers with strong credit profiles. They provide loans for new and used cars with terms ranging from 24 to 84 months. LightStream stands out for its customer-centric approach and fast approval process.
Customer Reviews:
- “LightStream offered me a rate that was significantly lower than other lenders. The application process was straightforward, and the funds were disbursed quickly.”
- “I had a fantastic experience with LightStream. The customer service was exceptional, and I got an excellent rate.”
2. Bank of America
Bank of America is one of the largest banks in the USA and offers a wide range of auto loan options with competitive rates. They provide loans for new and used cars, as well as lease buyouts and refinancing options. Bank of America is known for its user-friendly online application and excellent customer service.
Customer Reviews:
- “I got a great rate from Bank of America. The application process was smooth, and the customer service was top-notch.”
- “Bank of America made my car buying process stress-free. I highly recommend their auto loan services.”
3. Capital One
Capital One Auto Finance provides pre-qualification options that do not affect your credit score, making it easier to shop around without impacting your credit. They have a vast network of participating dealerships and offer flexible loan terms.
Customer Reviews:
- “Capital One made it easy to get prequalified. The rate they offered was very competitive, and the process was seamless.”
- “I had a great experience with Capital One. The application was simple, and the customer service was very helpful.”
4. Chase Auto
Chase Auto offers loans for new and used cars, lease buyouts, and refinancing. Their competitive rates and terms, particularly for existing Chase customers, make them a popular choice. Chase Auto also provides an easy online application process and responsive customer service.
Customer Reviews:
- “Chase Auto gave me a great rate, and the process was very straightforward. The customer service was excellent.”
- “I refinanced my car loan with Chase and saved a lot on interest. Highly recommended!”
5. Wells Fargo Auto
Wells Fargo Auto provides financing for new and used cars with various term lengths and competitive rates. They also offer refinancing options to help lower monthly payments. Wells Fargo is known for its easy application process and helpful customer support.
Customer Reviews:
- “Wells Fargo Auto made the loan process easy and quick. The rates were very competitive.”
- “I had a great experience with Wells Fargo. The customer service was excellent, and the approval process was fast.”
6. U.S. Bank
U.S. Bank offers auto loans with competitive rates and great service. They provide loans for new and used cars, lease buyouts, and refinancing. U.S. Bank is known for its straightforward application process and helpful customer service.
Customer Reviews:
- “U.S. Bank gave me a great rate on my auto loan. The process was smooth, and the service was excellent.”
- “I highly recommend U.S. Bank for auto loans. They made the process easy and provided a great rate.”
7. PenFed Credit Union
PenFed Credit Union offers fantastic rates and easy application processes. They provide loans for new and used cars, as well as refinancing options. PenFed is known for its excellent customer support and competitive rates.
Customer Reviews:
- “PenFed gave me one of the lowest rates I could find. The application process was simple, and the customer service was fantastic.”
- “I had a great experience with PenFed. They offered an excellent rate, and the loan process was quick and easy.”
8. Navy Federal Credit Union
Navy Federal Credit Union provides competitive rates for military members and their families. They offer loans for new and used cars, as well as refinancing options. Navy Federal is known for its quick approval process and excellent customer service.
Customer Reviews:
- “Navy Federal gave me a great rate on my car loan. The process was quick and easy, and the customer service was excellent.”
- “I highly recommend Navy Federal for auto loans. They provided a great rate and made the process hassle-free.”
9. Alliant Credit Union
Alliant Credit Union offers low rates and excellent service. They provide loans for new and used cars, as well as refinancing options. Alliant is known for its user-friendly online application and responsive customer service.
Customer Reviews:
- “Alliant Credit Union gave me a fantastic rate on my car loan. The process was easy, and the service was excellent.”
- “I had a great experience with Alliant. They provided a low rate, and the application process was simple.”
10. SunTrust Bank
SunTrust Bank offers competitive rates and flexible terms for auto loans. They provide loans for new and used cars, as well as refinancing options. SunTrust is known for its responsive customer service and straightforward application process.
Customer Reviews:
- “SunTrust Bank gave me a great rate on my auto loan. The process was quick and easy, and the customer service was excellent.”
- “I highly recommend SunTrust for auto loans. They provided a competitive rate and made the process hassle-free.”
11. PNC Bank
PNC Bank offers auto loans with good rates and a straightforward process. They provide loans for new and used cars, as well as refinancing options. PNC is known for its helpful and professional staff and easy application process.
Customer Reviews:
- “PNC Bank gave me a competitive rate on my car loan. The process was smooth, and the staff was very helpful.”
- “I had a great experience with PNC. They provided a good rate, and the application process was simple.”
12. USAA
USAA offers excellent rates for military families. They provide loans for new and used cars, as well as refinancing options. USAA is known for its quick and hassle-free application process and excellent customer service.
Customer Reviews:
- “USAA gave me a great rate on my auto loan. The process was quick and easy, and the customer service was excellent.”
- “I highly recommend USAA for auto loans. They provided a competitive rate and made the process hassle-free.”
13. Ally Bank
Ally Bank provides competitive rates and an easy online process for auto loans. They offer loans for new and used cars, as well as refinancing options. Ally is known for its helpful and friendly customer service.
Customer Reviews:
- “Ally Bank gave me a great rate on my car loan. The process was simple, and the customer service was very helpful.”
- “I had a great experience with Ally. They provided a low rate, and the application process was easy.”
14. Consumers Credit Union
Consumers Credit Union offers very competitive rates and fast approval for auto loans. They provide loans for new and used cars, as well as refinancing options. Consumers Credit Union is known for its excellent service and easy application process.
Customer Reviews:
- “Consumers Credit Union gave me one of the lowest rates I could find. The approval process was fast, and the service was excellent.”
- “I highly recommend Consumers Credit Union for auto loans. They provided a great rate and made the process hassle-free.”
15. Fifth Third Bank
Fifth Third Bank offers good rates and an easy process for auto loans. They provide loans for new and used cars, as well as refinancing options. Fifth Third is known for its friendly and knowledgeable staff and straightforward application process.
Customer Reviews:
- “Fifth Third Bank gave me a competitive rate on my car loan. The process was smooth, and the staff was very helpful.”
- “I had a great experience with Fifth Third. They provided a good rate, and the application process was simple.”
16. Digital Federal Credit Union (DCU)
Digital Federal Credit Union (DCU) offers great rates and excellent member service for auto loans. They provide loans for new and used cars, as well as refinancing options. DCU is known for its quick and easy loan process and competitive rates.
Customer Reviews:
- “DCU gave me a fantastic rate on my auto loan. The process was quick and easy, and the service was excellent.”
- “I highly recommend DCU for auto loans. They provided a great rate and made the process hassle-free.”
17. NASA Federal Credit Union
NASA Federal Credit Union offers competitive rates and helpful staff for auto loans. They provide loans for new and used cars, as well as refinancing options. NASA FCU is known for its seamless application and approval process and great rates.
Customer Reviews:
- “NASA FCU gave me a great rate on my car loan. The process was quick and easy, and the staff was very helpful.”
- “I had a great experience with NASA FCU. They provided a low rate, and the application process was simple.”
18. TD Bank
TD Bank offers low rates and flexible terms for auto loans. They provide loans for new and used cars, as well as refinancing options. TD Bank is known for its great customer service and support and easy application process.
Customer Reviews:
- “TD Bank gave me a competitive rate on my car loan. The process was smooth, and the customer service was excellent.”
- “I highly recommend TD Bank for auto loans. They provided a great rate and made the process hassle-free.”
19. Regions Bank
Regions Bank offers competitive rates and an easy application process for auto loans. They provide loans for new and used cars, as well as refinancing options. Regions Bank is known for its responsive and helpful staff and straightforward loan process.
Customer Reviews:
- “Regions Bank gave me a great rate on my auto loan. The process was quick and easy, and the staff was very helpful.”
- “I had a great experience with Regions Bank. They provided a low rate, and the application process was simple.”
20. Huntington Bank
Huntington Bank offers good rates and a simple process for auto loans. They provide loans for new and used cars, as well as refinancing options. Huntington Bank is known for its excellent customer support and competitive rates.
Customer Reviews:
- “Huntington Bank gave me a great rate on my car loan. The process was smooth, and the customer service was excellent.”
- “I highly recommend Huntington Bank for auto loans. They provided a good rate and made the process hassle-free.”
Frequently Asked Questions (FAQs)
1. What is a good interest rate for an auto loan?
A good interest rate for an auto loan varies based on your credit score, loan term, and the lender. Generally, rates between 3% to 5% are considered good for new car loans, while used car loans may have slightly higher rates. Always shop around and compare offers from multiple lenders to find the best rate for your situation.
2. How can I qualify for the lowest auto loan rates?
To qualify for the lowest auto loan rates, maintain a high credit score, choose a shorter loan term, make a large down payment, and shop around for the best rates from multiple lenders. Improving your credit score by paying off debts and avoiding new credit inquiries can also help secure better rates.
3. Is it better to finance through a bank or a dealership?
Financing through a bank or credit union often provides better rates and terms compared to dealership financing. However, it’s advisable to compare offers from both to determine the best option for your situation. Dealership financing can be convenient, but it may come with higher rates and less favorable terms.
4. Can I refinance my auto loan to get a lower rate?
Yes, refinancing your auto loan can help you secure a lower interest rate, especially if your credit score has improved or market rates have decreased since you took out the original loan. Refinancing can reduce your monthly payments and save you money over the life of the loan.
5. How do I check my credit score before applying for an auto loan?
You can check your credit score for free through various online services, such as Credit Karma, Experian, or your credit card issuer. Reviewing your credit report helps you understand your credit standing and identify areas for improvement before applying for an auto loan.
Conclusion
Securing the lowest auto loan rates can significantly reduce the total cost of your vehicle purchase. By understanding the factors that influence auto loan rates, improving your credit score, and comparing offers from multiple lenders, you can find the best rate for your situation. Use the information and resources provided in this guide to make an informed decision and ensure that your car purchase is both affordable and financially sound.
