After conducting exhaustive research, we have determined that PenFed Credit Union is the best overall auto loan lender due to its wide array of loan types and competitive rates. With rates for used car loans as low as 6.49%, it offers significant savings for consumers. Our research included reviewing 21 auto loan lenders and collecting the best new, used, and refinance auto loan rates. We considered APRs, loan types, loan terms, vehicle and borrower requirements, and other factors. Insights were gathered from 1,016 auto loan customers to gauge their sentiments about lenders and the loan process.
PenFed emerged as our top choice for auto financing due to its comprehensive suite of loan types, ranging from loans for new or used cars to refinances, cash-out refinances, and lease buyout loans. Buyers can even utilize a used car loan to purchase a vehicle from a private seller. Pre-approved customers will receive a mailed check from PenFed, a process that takes a few days. However, should customers employ the TrueCar car-buying service, their loan could be funded on the same day of approval.
Other top picks include AUTOPAY and Consumers Credit Union, which cater to different types of borrowers and have varying benefits. For example, AUTOPAY is suitable for borrowers with low credit scores and offers an array of auto loan types on its platform. Consumers Credit Union, on the other hand, imposes no limits on vehicle model or mileage, making it ideal for those looking to buy an older car from a dealership.
If you're looking for an innovative, streamlined experience, Carvana provides a completely online car-buying experience. You can apply for an auto loan, find a car, and either pick it up or have it delivered to you. Alternatively, OpenRoad Lending offers a lifeline to those struggling to make their auto loan payments, providing the option to refinance loans for high-mileage cars.
Overall, your choice of lender will depend on various factors such as your credit score, the type of loan you need, and your personal preferences. Rather than rushing to secure an auto loan, take your time and research your options thoroughly to make sure you get the best deal possible.