Best Auto Loans for a New Car

2018’s Best Auto Loans for a New Car

Looking for a new car? You’re not alone. In 2017, 6.3 million new cars were sold in the U.S.

The question is, where can you find the best auto loan for a new car? Many mistakingly assume they have to get financing from the dealer, but that is not always the case.

In fact, you can often save by getting a loan from a third-party. However, getting the best deal requires performing some research, shopping around, and comparing your options.

While the solution won’t be the same for everyone, here’s what to look for in an auto loan including the seven top auto loan lenders for 2018.

What to look for in an auto loan

For those who do shop around with different lenders, many ask, “What are the best car loan rates today?” However, there’s more to an auto loan than the rates advertised by various lenders.

Why? They are the lowest possible interest rates a company offers and will only be available to borrowers who meet the highest standards regarding creditworthiness and verifiable income.

What really matters is:

Being so, the best lenders will allow you to apply online and get a quote that doesn’t hurt your credit score.

Further, they will have an excellent reputation for high-quality customer service, treating customers well, and providing them with a positive loan experience.

Lastly, the overall costs, down payment, and monthly payment must be competitive and suit your budget.

So which lenders are delivering on all of these fronts?  

2018’s 7 Best Auto Loans for a New Car

Drumroll…here are seven of our top picks for 2018:

1. SpringboardAuto

SpringboardAuto offers auto loans for new cars “on your terms.” What does that mean? After you apply online, you will receive the interest rate and loan amount for which you qualify.

Then, you can customize the terms of your loan using SpringboardAuto’s Loan Configurator, which lets you adjust your down payment amount and term duration to see how it impacts your monthly payment and total cost.

This makes it easy to find the best terms for your situation.

Highlights:

  • Secured loans
  • Soft credit pull to see rates (doesn’t hurt your credit score)
  • Borrow as little as $7,500 and as much as $45,000
  • Origination fees may apply
  • Minimum FICO score required is 500
  • Vehicles restrictions apply
  • Available in 33 states (13 more coming soon!)

SpringboardAuto is dedicated to improving the auto loan process with the use of technology. You can apply quickly, get your loan electronically deposited into your account, and negotiate as a cash buyer.

SpringboardAuto CEO, Jim Landy, says, “Our entire company was designed to give customers confidence by being transparent and by making the process as simple as possible.”

Learn more about SpringboardAuto and apply here.

2. LightStream

LightStream, the online division of SunTrust Bank, is another online lender, but it specializes in rewarding excellent credit with great terms. The company is determined to offer the best loan solution to those who qualify, however, is only for those with good-to-great credit.

Highlights:

  • Secured and unsecured loans
  • Loan amounts range from $5,000 to $100,000
  • Minimum 660 FICO score is required
  • No origination fees
  • Hard credit pull to see rates
  • Very competitive interest rates
  • 50 interest-rate discount for AutoPay
  • Loan terms ranging from 24 to 84 months
  • Fixed interest rates
  • Same-day funding available
  • Will beat any qualified rate from a competitor
  • Serves customers nationwide

Have good-to-excellent credit? Apply for Lightstream here.

3. LendingPoint

If you have less-than-great credit, LendingPoint will be a better solution. It uses a proprietary credit analysis model to consider more than just your credit score when processing your application. Upon approval, you can get a personal loan to purchase your new car.

Highlights:

  • Unsecured loans
  • Loan amounts range from $3,500 to $25,000
  • Loan terms range from 24 to 36 months
  • Soft pull to see your offer
  • Startup fees may apply
  • Funding can be as soon as next-day
  • Serves 32 states and Washington D.C.

Note: If you have good credit, another lender will likely be able to offer you more competitive rates.

Learn more about LendingPoint and apply.

4. AutoPay

Autopay connects borrowers with a network of financing institutions and credit unions across the country. Each lender has a different set of criteria for approval, which means Autopay can help many borrowers from those with not-so-great credit to those with excellent credit.

Highlights:

  • Secured loans
  • Soft credit pull to see your rates
  • Loan amounts range from $2,500 to $100,000
  • Loan terms range from 24 to 84 months
  • Origination fees may apply
  • Offers loans in all 50 states and Washington D.C.

Learn more about Autopay and apply.

5. LendingClub

LendingClub is the largest personal loan lending marketplace in the U.S. and has lent over $35 billion to more than 2.4 million customers. Borrowers can join and get instant offers that are funded by investors.

Highlights:

  • Unsecured loans
  • Loans up to $40,000
  • Origination fees apply
  • Fixed monthly payments
  • Loan takes about seven days to process
  • Soft credit pull to get an offer
  • 36- and 60-month loan terms are available
  • Available in all U.S. states except Iowa

Learn more about LendingClub

6. Prosper

Prosper is a marketplace lender that connects borrowers and investors. It has helped 750,000 people borrow $12 billion since its founding. The rates are competitive, and the online application is easy.

Highlights:

  • Unsecured loans
  • Loan amounts range from $2,000 to $40,000
  • Fixed interest rates
  • Minimum FICO credit score of 640 is required
  • Origination fees apply
  • Easy online application with soft credit pull
  • 36- and 60-month terms available
  • The loan gets direct deposited into your account
  • Available in all U.S. states except Iowa and West Virginia

Learn more about Prosper here. 

7. Auto Credit Express

Lastly, Auto Credit Express specializes in helping borrowers with bad credit, including those who have gone through a bankruptcy. The company connects people with local dealers and lenders that will offer them financing. If you are having trouble getting approved elsewhere, give Auto Credit Express a try.

Highlights: 

  • Secured loans
  • Loan terms up to 72 months
  • No origination fees
  • The minimum credit score requirement is 400
  • Approval can take up to seven days
  • Serves all 50 states

Tips on getting a car loan with bad credit. 

Each of these seven companies can help customers get a good deal on a loan for a new car. However, the right fit will depend on your circumstance.

Learn how to get the best deal on a car loan.

Auto loan frequently asked questions

What are the best 96-month auto loan rates?

96-month auto loans are highly unusual as maximum loan terms typically range from 48 to 84 months. The extended term will result in a higher total cost as you will be paying interest for a longer period of time. We don’t recommend auto loans that extend over 84 months.

What are the best auto loan rates for 72-month terms?

Quite a few lenders are offering 72-month terms. Some of the best include SpringboardAuto, Auto Credit Express, Autopay, LightStream, and MyAutoloan.

What are the average car loan interest rates by credit score?

According to MyFico, the average interest rates on a 60-month loan for a new car are as follows:

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Note that the figures are based on a loan for the average estimated transaction price for a new light vehicle in the U.S. which is $35,444.

Where can I find the best credit union auto loan rates?

Autopay specializes in connecting borrowers with a network of credit unions across the U.S. Their platform is a great place to find out what loan rates credit unions will offer you.

Find the best auto loan for your new car

One of the best things about shopping for an auto loan in 2018 is that many lenders offer pre-approval online. Say goodbye to hours spent in the dealership filling out paperwork. Get an answer in minutes and, in many cases, without hurting your credit.

Once you have a handful of offers, you can compare them (and the companies behind them) to find the best deal for you.

Check your best rate! Save time and money with SuperMoney’s auto loan offer engine.

After answering a few simple questions, SuperMoney will communicate with its network of lenders and provide you with side-by-side offers. Only when you choose one and finalize the loan will your credit report receive a hard inquiry.

Ready to get started? Get your rates now!

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