It is important to keep in mind that these low rates are not available to all borrowers. They often require great credit and may only be extended to existing customers/members. These advertised rates could also include discounts for account activity, automatic payments, military service, etc. 

Best Auto Loan Rates

Not all banks and financial institutions will offer you the same rate on an auto loan. Credit requirements, vehicle requirements, and loan terms vary greatly between lenders.

To help you get started on your auto loan search, we’ve gathered a list of the best auto loan rates currently being offered. All of these financial institutions and matching services currently advertise APRs below 7.5%.

1. Alliant

This open-to-anyone credit union offers various banking and lending services, including auto loans, refis, and special loans for Tesla vehicles. 

They also have a dedicated car buying program where you can earn up to a 0.50% discount on your APR and receive discounts when you purchase your vehicle from their network of dealerships. 

How Much Does it Cost?

Alliant does not charge application fees, origination fees, or early repayment penalties. 

APRs on Alliant’s car loans have different starting rates depending on loan type. 

1. Alliant’s car buying service: 6.50% on new cars and 7.37% on used (with automatic payments discount).
2. Standard: 6.50% on new and 7.37% on used (with automatic payments discount).
3. Auto loan refinance: 7.37% for refinancing an existing Alliant auto loan. 
4. Tesla auto loans: 6.99% new and 7.34% used. 

Your individual APR will depend on your creditworthiness. 

Visit Website

2. Autopay

This auto loan marketplace offers matching services for a variety of auto loans and refi options, including 3rd party sales and lease buyouts. 

It is also worth noting that they are part of The Savings Group, which includes auto loan refi matching companies RateGenius and Tresl. 

How Much Does it Cost?

Autopay does not charge any application fees or prepayment penalties. Since they are a matching service, your loan offer could come with lender-specific fees like origination fees or credit union membership fees. 

The lowest APR that Autopay advertises on their loans is 4.67%. The APR you qualify for may be higher depending on the loan terms you are looking for and your overall creditworthiness. 

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3. Bank of America

One of the largest banks in the U.S., Bank of America offers a wide variety of banking and lending services, including auto loans, auto loan refis, and lease buyouts.  

Unfortunately, they do not offer a prequalification process, so your loan application will result in an immediate hard inquiry. 

See full details on Bank of America’s auto loan process.

How Much Does it Cost?

Bank of America does not charge loan origination fees, but they can pass along governmental fees (i.e., title fees). 

Their current advertised starting APRs are

• 5.89% new
• 6.29% used
• 7.09% lease buyout
• 7.09% refinance

If you are a preferred rewards member, you can earn a rate discount of 0.25% up to 0.50%, so the lowest possible rate for a new car would be 5.89%. 

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4. Lending Tree

This loan matching service offers a variety of loans, including auto loans and auto loan refinancing. When you fill out your loan application, they’ll match you with up to 5 lenders from their network of over 500 lenders. 

Read our full review of Lending Tree’s auto loan matching service. 

How Much Does it Cost?

Lending Tree will not charge you anything, but individual lenders may charge you origination fees or other fees. 

Lending Tree advertises the lowest possible APR as 4.50% from Southeast Financial Credit Union (SFCU). You’ll need a credit score of 750 and a loan term of 12 months to qualify for this rate. You’ll also need to become a member of the credit union. 

The 4.50% APR is available on new and used vehicles. The lowest APR available for refi loans is 4.50%.  

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5. My Auto Loan

This loan matching service specializes in auto loans and auto refi loans. You can compare up to 4 offers simultaneously. MyAutoLoan offers loans for new cars, used cars, private party sales, refis, and lease buyouts.

MyAutoLoan is not currently available to residents of Alaska or Hawaii.

How Much Does it Cost?

MyAutoLoan is a matching service, and filling out their application is 100% free.

The lowest APR MyAutoLoan offers is 4.93% for lease buyout. APRs for other types of loans start at

• 4.99% refinance
• 6.84% new
• 7.09% used
• 7.49% private party sale

The lowest available rate varies based on loan term length and creditworthiness.

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6. Navy Federal

One of the largest credit unions in the nation, Navy Federal offers a variety of lending and banking services, including auto loans and auto refi loans.

However, loans are only available to members, and membership at Navy Federal is limited to the military, their families, and government workers.

How Much Does it Cost?

Navy Federal does not charge an application fee.

The interest rates they offer depend on the loan type. Their starting APRs are

• 4.29% for new vehicles
• 4.29% for used vehicles only 1 or 2 years old
• 5.19% for used vehicles over 2 years old

If you are an active duty service member, you can receive a rate discount of 0.25% making your lowest potential APR 4.29%.

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7. PenFed

This national credit union with open membership (anyone can join), offers various banking and lending services, including auto and auto refi loans.

PenFed also offers a car buying program where you can score lower interest rates and cashback incentives from select manufacturers. You must be a PenFed member for at least 60 days before applying for an auto loan through their car-buying program.

How Much Does it Cost?

There are no application fees or origination fees.

PenFed offers its best interest rates through its car buying program. Starting APRs are as follows:

• 5.24% – New vehicles purchased through their car buying program
• 5.94% – New vehicles 
• 6.49% – Used vehicles purchased through their car buying program
• 6.79% – Used vehicles
• 5.94% – New vehicle refinance (2 years or newer)
• 6.79% – Used vehicle refinance

Your APR offer will depend on the specific terms of the loan and your creditworthiness.

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What Is a Good Interest Rate for a Car Loan?

Your credit score has a huge impact on the interest rate you’re offered. The higher your credit score, the lower the rates you will be offered. When you take this into consideration, a good interest rate for a car loan will be the one that allows you to finance a car with manageable monthly payments for your budget.

In the table below, you can see the most recent average interest rates for both new and used cars by credit score.

Average auto loan rates for Q3 (July – September) 2023

*Actual interest rates are based on many factors such as state, down payment, income, and others.

How to Get the Best Auto Loan Rates

The above banks, credit unions, and matching services are the lowest rates that we could find offered to the general public. But you can still find as good or better APR offers by doing a more personalized search.

Let’s take a look at some great ways you can land the best APR on your next car loan.

Use a Loan Broker

A loan matching service, or “loan broker,” lets you find the best rate and loan terms by working with a network of lenders. You fill out one application, and it is forwarded to all lenders. This often results in competitive offers, even for those with poor credit.

Plus, the matching process is usually a prequalification step, so there won’t be a hard credit pull.

Just remember the offers you receive through a loan broker are not guaranteed. Loan terms can change up until the final approval stage.

Finding financing options when you have bad credit can be difficult. That’s why we’ve compiled a separate list of the best auto loan lenders for bad credit. We carefully evaluated these companies to ensure we have presented you with credible, non-predatory options.

Check With Local Banks and Credit Unions

Another good resource for finding auto loans with great terms and rates is to check with your local bank or credit union, especially if you already have a relationship with that financial institution.

Big banks often offer great rates, especially to those with good credit, but they don’t publish these rates. For example, I received a 2.83% APR on my last used vehicle purchase through Capital One, but I only learned about this low rate once I applied.

Credit unions are also a good choice as they are known for offering low interest rates and longer repayment terms thanks to their not-for-profit model.

While credit unions have traditionally been restricted to specific areas or groups, there are now credit unions that anyone can join.

Explore Dealer Financing

Many dealers offer 0% APR offers on new vehicles and low APR loans (under 3%) for certified pre-owned vehicles. But you’ll likely need excellent credit to qualify for these offers.

Traditional car dealers offer financing packages from other lenders. But some dealers offer what is called buy here, pay here in-house financing as well. This type of financing is usually offered by dealers selling low-value vehicles and does not require a credit check.

Just be aware that these financing offers often disqualify you from receiving any manufacturer rebates or promotions.

Buy from Online Dealers

No haggling with a dealer and explore vehicles virtually and buy on your own time. Online-only dealers such as Carvana and Vroom have pioneered this buy-from-your-couch car-buying process.

In addition to helping you find a car, they can finance it for you. Carvana, for instance, has an in-house financing program. The lowest advertised rate is 6.85%, but many customers have reported getting much lower rates, sometimes under 4%.

Improve Your Credit

If your credit is poor, then the best way to score a good APR is to improve your credit. Even a boost of a few points can move you from fair credit to good credit and save you a decent chunk of change with a lower APR.

To improve your credit score quickly, check out resources like Experian Boost, rent reporting services, and other credit-building programs.

Refinance Your Loan

If you had to purchase a vehicle when your credit wasn’t the best or got duped by a bank or dealer that stuck you with a high APR, you could still save money by refinancing your car loan.

Many lenders offer low rates for refis. You can check out our review of the best auto refinance companies to get started.

Just make sure you refi early on in the loan, or you could end up overpaying in interest charges.

Before you consider refinancing, be sure that you understand the pros and cons and the factors that determine when you should refinance your car loan.

Bottom Line

When shopping around for an auto loan, finding the best rate possible can save you a significant chunk of change over the life of the loan. Unfortunately, loan rates change frequently, so the bank with the best rate today might not have the best rate tomorrow.

The good news is that most banks offer a prequalification process that doesn’t require a hard inquiry, so you can shop around to find the best auto loan rates and terms without damaging your credit.

Do yourself a favor and buy a car you can easily afford. If you’re not sure if you can afford the car you’re looking at, follow these steps to determine how much car you can afford to buy.

We hope you can use this list of the best auto loan rates to save money on your next vehicle purchase.

The post Best Auto Loan Rates of February 2024 (New, Used and Refi) appeared first on FinMasters.

Average Auto Loan Rates by Credit Score

Here are the most recent average auto loan rates for each credit score bracket.

Average rates for Q3 (July – September) 2023

Actual interest rates are based on many factors such as state, down payment, income, and others.
Source: Experian: State of the Automotive Finance Market Q3 2023

Calculator

Use our auto loan calculator below to see just how much your credit score can affect your monthly payment and the total amount of interest you end up paying for your loan.

How Your Credit Score Impacts Auto Loan Rates

Your credit score has a huge impact on the interest rate you’re offered and on the cost of your loan. In the table below, you can see the average interest rates for both new and used cars by credit score to see just how much of an effect it has.

Average auto loan rates by credit score (Q3 2023)

Actual interest rates are based on many factors such as state, down payment, income, and others. Source: Experian: State of the Automotive Finance Market Q3 2023

Finding financing options when you have bad credit can be difficult. But luckily, there are lenders and loan marketplaces that will work with you. Discover the best auto loans for bad credit.

How Your Credit Score Affects the Monthly Payment

Here’s an example to illustrate the difference your credit score makes in determining your monthly payment.

As you can see, your credit score plays a major role in determining the interest rate you’re offered and the cost of your loan.

Average Rates for a New Car

Most dealerships will advertise plenty of incentives for buying a new vehicle, such as cash rebates, low interest rates, or special lease offers. Buying a new car generally comes with much better interest rates than buying a used vehicle.

Here’s what you can realistically expect to get based on national averages.

Average Rates for a Used Car

We see incredible offers online and on TV for new car loan rates, but we rarely see used auto rates advertised. Borrowers will usually pay a higher interest rate for a used car loan.

Rates are higher for used cars because their value is lower. If the lender has to repossess your car, it may be difficult for them to sell it for enough to cover your balance. That means more risk to the lender. Lenders charge higher rates when their risk rises.

Here’s the rate you can expect to get based on national averages.

You can see the impact of the higher rates. The difference, of course, is that the average sale price of a new car in the US is $48,808, while the average price of a used car is $27,000. That’s a big difference!

Even with higher interest rates, used cars can be a good deal simply because the sticker price is often much lower than the price of a used car.

Be Careful!
Buying a used car has its risks. That’s why you always want to check the vehicle’s history. You can run a vehicle history report on sites like Carfax using the Vehicle Identification Number (VIN). If the dealer or seller will not give you the VIN, consider this a major red flag and move on to another vehicle.

Average Auto Refinance Rates

Refinance rates are usually the same as rates for a loan taken at the time of sale, so the figures quoted above will apply.

Refinancing can help you get a better deal on your car loan, but to get the best deal, you’ll need to get the best refinancing loan! We’ve put together a list of the best auto refinance companies.

FAQs

The post Average Car Loan Interest Rates by Credit Score (February 2024) appeared first on FinMasters.

Who Is The Bank of America (BofA)? 

The Bank of America Corporation can trace its roots back to when Amadeo Giannini founded the Bank of Italy in 1904, headquartered in San Francisco. 

Through many mergers and acquisitions, BofA has become one of the largest financial institutions. 

Today BofA is the 13th largest company in the world and has over 4,600 branches, 15,900 ATMs, and 205,000 employees. 

They offer new, used, and refinancing for automobiles under ten years old with immensely customer-friendly car loan terms of 48 to 72 months. 

What Makes Them Different?

Bank of America auto loan rates are extremely competitive if you select a car through their online vehicle services program. 

If you bank with BofA or are a member of their subsidiary, MerrillLynch, you may be eligible for a lower car loan rate through their Preferred Rewards members program. 

How Do Bank Of America Auto Loans Work?

Auto loans from Bank of America work the same as with most other banks today. You will have the option of speaking with your local bank’s loan officer, or you can get approved for car financing online.

They offer a quick three-step process and claim that they can give you a decision on your next auto loan in 60 seconds.

Meet The Guidelines

First, you need to meet the general guidelines before you can apply, and those are: 

• You must be 18 years old or otherwise have the ability to contract for automotive financing in your state of residence legally
• You must be either a U.S. citizen or resident alien (permanent or non-permanent)

Are You Buying New or Used

You need to figure out what type of financing you will need, are you buying a new car or a used car? Will you be refinancing, or are you looking for a lease buyout?

Once you know which option you are going for, then you can go to the next step. 

Get Your Paperwork Together

Things The BofA Corporation will need are: 

• Banking History
• Proof Of Income
• Proof Of Identity
• Proof Of Insurance
• Proof Of Residency
• Information On Vehicle You Plan To Purchase
• Current Vehicle Registration (If you plan to do a trade in)

Keep in mind this is just a general list. BofA could need more or less information, just have at least the things above ready.

Time To Apply (Hard Inquiry)

Now that you know you meet the general requirements, you have all your documents together, and you know that the dealer is in the BofA network, it’s time to apply.

It makes a lot of sense to get a Bank of America Pre Approval letter before going to the dealership to buy your car.

Many studies have conclusively shown that obtaining financing from the dealership is much more costly than having it in place before your purchase.

Review & Accept Your Offer

Be sure to review the offer from Bank of America before you purchase.

You need to look at their requirements and car loan rates and if they will require a down payment or a co-signer.

Make sure you understand what you are paying for and keep referring to the original offer to make sure nothing changed from the time you accepted it to the time your loan was funded.

Once you accept the offer, your loan can be funded by either bank deposit, ACH, check, or certificate.

Be sure to speak with your Bank of America Auto Finance loan officer about the date the funds are estimated to be available. 

Bank of America Auto Online customer reviews indicate this estimated date may not be met. 

Bank of America Auto Loan Reviews

Bank of America auto loan reviews are mostly very negative.

Customers regularly complain of poor customer service and disorganization in the Bank of America auto finance department. 

Below are some of the Bank of America auto loan reviews:

As part of the process of this review, we read countless reviews, and while it is not uncommon for a large company to have negative reviews, these were especially troubling. 

Looking closely, it doesn’t take long to realize that BofA’s customer service consistently shows a callousness to problems they have created and will make the minimal amount of effort necessary to correct a problem. 

One example would be the number of complaints from people attempting to clarify auto loan fees that were not in the contract but were forced to pay anyhow. 

If you are one of the lucky people who never have to contact Bank of America customer service, then you will probably have a fine experience.

Below we have gathered the most trusted customer Bank of America Car Loan reviews from sites such as Yelp, Google and BBB for the Bank of America Auto Finance Division.

BofA Auto Loan BBB – Better Business Bureau

Bank of America has had a file at the Better Business Bureau since 1949.

Bank of America has an A+ BBB rating, but they do have a staggering 7,440 complaints in the past three years.

Bank of America BBB complaints tend to be financially related, with claims of fees being charged outside of the contract or loan payments continued to be debited from customers’ accounts after being paid off. 

The Bank of America BBB Reviews generally point to a company that wants your business so long as it is all of the online and of the automated variety. 

BofA BBB reviews and customer complaints are taken seriously by the company as most receive a response which is why they have an A+ BBB rating.

Conclusion

For a big bank, Bank of America offers very favorable loan terms and interest rates. You can get prequalified for an auto loan in less than five minutes, and if you are a member of their Preferred Rewards program, you may qualify for even lower interest rates.

That said, there have been numerous customer complaints about the bank overcharging auto loan fees. The customer service is not great, to say the least.

The post Bank Of America Auto Loan Review (2024): Is It a Good Option? appeared first on FinMasters.

Who Is Chase?

Chase National Bank was founded in 1877 by John Thompson and eventually grew into Chase Manhattan, one of the largest banks in the country. In 2000 Chase Manhattan completed the acquisition of J.P Morgan & Co, another financial industry giant, with the combined entity becoming J.P. Morgan Chase.

JP Morgan Chase is the largest bank in the U.S., with over 5,100 branches, 16,000 ATMs, and 250,000 employees. It’s also the largest credit card issuer in the US after its acquisition of Bank One in 2004.

The Chase Bank Auto Loan division offers new, used, and lease buyout loans for automobiles under ten years old with terms between 48 and 72 months. They offer several educational resources and financial calculators to help you choose an auto loan that you can afford.

What Makes Them Different?

The Chase Car Loans website offers a comprehensive financial education library that can help you understand the process of purchasing and financing a car.

The materials cover the entire auto purchase process, and there are multiple articles and worksheets that will help you determine whether you should purchase a new or used automobile. You can jump around from section to section or go through the entire process to prepare yourself for making your car purchase and obtaining financing. 

Chase’s car loan education resources are much more comprehensive than other lenders’ websites we have reviewed. Of course, these resources are available to anyone, whether you obtain a loan from Chase Auto Financing or not.

You can also shop online for cars offered by Chase Auto Preferred dealers. You can pick out a car online and save time by applying for financing right away. You can also schedule a visit with the selected dealer and apply with them directly.

Another nice feature Chase offers is a free credit score through Chase Credit Journey, whether you are a customer or not. 

How Do Chase Car Loans Work?

The Chase Car loan process is straightforward if everything goes smoothly.

• Choose a loan type. Are you buying a new car or a used car? Are you looking for a lease buyout?
• Prequalify. You can prequalify in minutes with no impact on your credit score. You’ll know how much you can afford to spend.
• Shop. You’ll have to use a dealer in the Chase network. Choose a car that fits your needs and your prequalification budget.
• Apply. You’ll have to supply your car and dealer details to get a financing decision. Expect a hard credit check at this stage.
• Review and compare. Review the loan offer and compare it with an offer from at least one other lender. Borrowers who shop get the best deals!
• Close a deal. Chase will deal directly with the dealer, saving you time.

Note: You can only use a Chase auto loan at a dealer that is a member of the Chase network. The dealer will be the borrower of record. 

Requirements

You will need to meet a few general requirements before applying for a Chase auto loan:

• Proof of identity. A government-issued ID with a photo and signature will be expected.
• Proof of insurance. You may have to arrange insurance before a loan is approved. Lenders will expect comprehensive coverage.
• A Social Security number will be required.
• Registration papers for your current vehicle if you are trading it in.
• Proof of employment. You will be expected to provide pay stubs, W-2 forms, or other proof of your employment and income.
• A credit score. Chase doesn’t publish their minimum credit score. Some online reviews suggest a 650 minimum. Minimum credit scores may vary based on other factors, like income.

Most of these will be required by any auto lender, so get them ready if you plan to shop for a car loan.

Chase Auto Loan Customer Reviews

Chase car loan reviews are mostly very negative.

‘If you like being treated like crap, CHASE is the bank for you!!!’ (no emphasis added or needed)

Being the largest isn’t always the best, as customer reviews reveal a lender that has lost sight of their customers’ needs and regularly takes actions that would indicate that they also do not care. 

Below are some of the Chase Auto Loan reviews:

As part of the process of this review, we read countless reviews, and while it is not uncommon for a large company to have negative reviews, these were especially troubling.

Looking closely, it doesn’t take long to realize that Chase Auto customer service consistently shows a callousness to problems they have created and will make the minimal amount of effort necessary to correct a problem.

One example would be the number of complaints from people checking on their Chase Auto Loan Status and finding out that it keeps getting extended.

The estimated Chase Car Loan Status seems to be just that, an estimate, we’ve read customer reviews complaining of months of running around before funding.

Below we have gathered the most trusted customer Chase Bank Car Loan reviews from sites such as Yelp, Google, and BBB for the Chase Auto Finance Division.

Chase Auto Finance BBB

Chase Auto Finance BBB has had a file at the Better Business Bureau since 1923.

Unfortunately, they have an A rating with a staggering 4221 complaints in the past three years and 1598 complaints in the past 12 months.

These complaints tend to be financially related, with claims of fees being charged outside of the contract or loan payments continuing to be debited from customers’ accounts after being paid off. 

BBB Reviews of Chase Auto Financing generally point to a company that wants your business so long as it is all of the online and automated variety. 

Conclusion

Chase might be a good choice if you are looking for financing from a big-name bank. Remember that Chase only offers to finance new and used vehicles available at one of the dealers in their network. If you are looking for refinancing or private party financing, you’ll have to look elsewhere.

If you are one of the lucky people who never have to contact Chase Financial Auto, then you will probably have a fine experience, but if there are any problems along the way.

The post Chase Auto Finance Review (2024): Should You Look Elsewhere? appeared first on FinMasters.

That’s where LendingTree auto loans shine. Get the best rates from lenders who are competing for your business with one simple request form.

The LendingTree created the multiple lender loan offers online business model. For over 20 years, Lending Tree has been providing customers with loan offers from their network of banks and lenders.

While Lending Tree does not actually provide you with the loan, they can pull offers from their vast network and offer loans to people regardless of your credit score.

They have a reputation for introducing customers to the absolute lowest interest rate auto loan offers that fund lightning quickly. There are many advantages and a few disadvantages to Lending Tree auto loan offers, which we will review in this article. 

Who Is LendingTree? 

LendingTree, LLC was founded by Douglas ‘Doug’ Lebda in 1997, and the company went national in 1998.

Their primary focus is to match customers who are looking for loans with banks and lenders.

Doug realized in the 1990s that shopping for the best interest rates took a tremendous amount of time.  Back in the olden days, a person would have to fill out a loan application (normally in person, limited internet back then) for each bank or lender. A few days or weeks later, you would receive a loan offer, but there was no standard way this offer had to be given. It was next to impossible to compare one loan offer to another.

The Lending Tree LLC fixed this problem by allowing people to fill out one application and receive multiple loan offers that are all organized in the same manner so you can easily compare each of the lending tree loan rates and associated costs.

What Makes Them Different?

LendingTree Auto Loans offer a network of over 300 banks and lenders competing for your business. When banks compete, you win! 

Lending Tree also offers you the ability to apply and complete the entire loan process from your mobile phone on their app. 

How Do LendingTree Auto Loans Work?

Unlike a traditional bank or lender, LendingTree is more like a personal agent or broker. You must go through the below process to apply with them.

1. Are You Buying New or Used

You need to figure out what type of financing you will need, are you buying a new car or a used car? Will you be refinancing or are you looking for a lease buyout?

Once you know which option you are going for then you can go to the next step. 

2. Get Your Paperwork Together

Since you don’t know which lender or dealership you will be going to, it’s best to be prepared.

Things the lenders might need are: 

• Banking History
• Proof Of Income
• Proof Of Identity
• Proof Of Insurance
• Proof Of Residency
• Information On Vehicle You Plan To Purchase
• Current Vehicle Registration (If you plan to do a trade in)

Keep in mind this is just a general list, the lenders could need more or less information, just have at least the things above ready.

3. Fill in the Application Form and Start Receiving Offers

The first step is to fill in the application form on the LendingTree website. It takes 3 minutes or less to knock out the quick form to match you with an auto dealer or lender.

Once you complete the application form, you should start getting offers from lenders in the LendingTree network in a matter of minutes.

At this time you will probably see a hard credit inquiry hit your credit report.

Quick Tip: FICO will give you a 30-day grace period to shop for as many Lending Tree loan rates as you want, and only show one hard inquiry will be recorded on your record.

4. Review Your Offers

Be sure to review the offers before you purchase.

You will be given up to 30 days to select one of the offers presented to you.

Once you narrow down the best auto loan offers, you can speak with the lenders’ loan officers to haggle for the best price. 

You need to look at their requirements as well as the interest rates and if they will require a down payment or a co-signer.

Look at everything: Remember that each lender will have their own specifics and requirements so be sure to look at each offer with as much detail as possible.

5. Pick The Best Offer

Once you choose an offer, your loan can be funded by either a bank deposit, ACH, check, or certificate.

You can have your funds as early as the next business day.

Tip: Make sure you understand what you are paying for and keep referring to the original offer to make sure nothing changed from the time you accepted it to the time your loan was funded.

LendingTree Auto Loan Customer Reviews

LendingTree auto loan reviews are mixed amongst many of the most trusted customer review websites across the internet.

Below are some of the Lending Tree reviews:

LendingTree reviews tend to fall into one of two categories. They are either extremely positive about the great rates and speed of the service. Or, they are negative, with the biggest complaint being that once you apply for a loan, your phone doesn’t stop ringing for 48 hours. 

Understand that to get the best Lending Tree rates, you must have multiple banks and lenders compete, and the loan officers know that you have multiple competitive rate options. 

By getting you on the telephone, they can discuss your needs and also sweeten their offer.  So the multiple lenders you deal with are a necessary evil to the end goal of incredible savings, which is the great advantage you’ll have with LendingTree.

Below we have gathered the most trusted customer Lending Tree reviews from sites such as Yelp, Google, and BBB for Lending Tree auto loans.

LendingTree Auto Loan BBB Reviews

LendingTree has been a BBB accredited business for over 20 years. They have an A+ rating, but they do have 255 complaints.  

Almost all of the LendingTree complaints revolve around the number of phone calls their customers get after filling out a loan application. 

The LendingTree BBB reviews are mixed but generally point to a company that takes care of its customers. 

While there are a lot of complaints, Lending Tree seems to take most of them seriously and responds to them, which is why they still have an A+ rating. 

Who Should Apply For Lending Tree Auto Loans? 

The best thing about Lending Tree auto loans is that they deal with multiple banks and lenders who are versatile in the type of people they can get approved for a loan.

Below are some people who should feel free to apply:

1. People Who Have Had Repossessions

The worst thing about having a car repossessed is that it usually happens at the most inconvenient time. 

If you have had this happen to you, then you know it also leaves a negative mark on your credit report and can hurt your credit score.

By dealing with Lending Tree, LLC, you can find a bank that may be willing to work with you, even if you had a car repossessed before. 

2. People With Bankruptcies

Someone with bankruptcy is probably used to hearing the words “No” or “Declined.”  

However, it doesn’t mean that you can’t purchase a car because of one.

The good thing about the Lending Tree LLC network is that they will be able to partner you with a lender that will be best for your needs.

3. Someone With No Credit History

If you don’t have any credit, it doesn’t mean you have bad credit. It just means you haven’t had a chance to establish any for the moment.

It is hard for lenders to make a good decision because you haven’t shown if you will treat your credit good or not.

The LendingTree car financing has plenty of banks and lenders that will work with you.

4. People with Little Credit History

If you don’t have a ton of credit history, you can still get covered for an auto loan.

Your score might be in the mid to high 500s or low 600s, but that doesn’t mean you have bad credit.

It just means you haven’t had a chance or taken the time to build your credit.

Lending Tree, LLC has plenty of lenders that will assist you in getting an auto loan.

5. People With Bad Credit

If you have bad credit, don’t worry, The Lending Tree works with a nationwide set of lenders who will be matched with you based on your credit profile.

You can rest assured that they work with lenders who can get you covered with as little as a 500 credit score.

6. People With Good Credit

If you have good credit then you will find the best rates the Lending Tree LLC’s bank and lenders have to offer. 

Conclusion

LendingTree is your best choice if you’re looking to get the lowest rate possible on your next car loan. Their lender network is one of the biggest in the US, and they can match people with all credit profiles with lenders willing to work with them.

The post LendingTree Auto Loan Review 2024: Best Car Financing Rates appeared first on FinMasters.

Who Is Ally Auto Finance? 

Ally Auto Finance was originally GMAC Financing until 2008, when they became a bank and changed to their present name, Ally Financial. 

Ally Auto Financial is the largest auto lender by volume in the U.S., with over 6 million customers. Today Ally is the 25th largest bank in the United States. 

Ally auto loan offers a variety of auto loan options through GM, Chrysler, Mitsubishi, Saab, and Suzuki dealerships.

What Makes Them Different?

Ally has an exclusive lending relationship with many auto brand-specific dealerships throughout the U.S. Their strength is in getting people approved for an auto loan, not getting their customers the best rates.

Think of Ally auto loans as a convenience when you are looking to make an impulse vehicle purchase, Ally car loan is there to make it as easy as possible, but it will cost you.

Dealership financing is where most of the profit is made in the auto sales industry. Ally is the largest dealership lender in the industry.

How Does Ally Loan Work?

Ally auto loans are only offered through dealerships at brands like GM, Chrysler, and Mitsubishi. The only way you will be able to get an Ally auto loan would be through one of their network of dealerships.

Ally Auto Loan Interest Rates

Before starting the auto loan process, there are a couple of things you should familiarize yourself with and the Ally auto loan calculator is a great tool. 

You should be aware of the current interest rates for car loans, and the Ally car loan calculator will be helpful in determining how much of a loan and payment you can afford.

Estimating Your Rate

Once you have an idea of what your starting interest rate might be you can now use the Ally monthly car payment calculator to help explore rates and payments. 

During this step, you will choose the type of loan, the loan amount, put in your credit type or actual credit score, and then your Zip Code.

Once you complete this process, you will see 3 different APRs, a low APR, an average APR, and a high APR.

You can use the Average APR to help determine what your monthly car note may be.

Finally, you will take the estimated loan amount with the Annual Percentage Rate or APR that you received from the “Estimate Your Interest” Tool to get a rate.

AllyAuto Finance Customer Reviews

Ally’s strength is getting its customers in vehicles quickly. 

They are not focused on anything beyond getting you to sign their high APR rate car loan.

Consequently, their customer service, once you have obtained your loan, leaves a lot to be desired. Customers complain of long delays in receiving responses to requests and disorganization throughout all departments.

Below are some of the Ally auto loan reviews:

As part of the process of this review, we read countless reviews of Ally auto loans, and while it is not uncommon for a large company to have negative reviews, these were especially troubling.

Looking closely, it doesn’t take long to realize that Ally auto customer service consistently shows a callousness to problems they have created and will make the minimal amount of effort necessary to correct a problem. 

Below we have gathered the most trusted customer Ally Auto Financial reviews from sites such as Yelp, Google, and BBB for the Ally Auto Finance Division.

Ally Financial BBB – Better Business Bureau

Ally Financial has had a file at the Better Business Bureau since 1984.

Ally Auto Loans has an A+ BBB rating with 2,350 complaints in the past three years.  

Ally Financial BBB complaints tend to be financially related, with claims of payoffs taking weeks to be applied while additional fees were uncured.

Most Ally BBB reviews and customer complaints are taken seriously by the company as most receive a response which is why they have an A+ BBB rating.

Conclusion

Ally auto loans are only available through their vast dealership network.

If you are sitting in a dealership right now wondering if the Ally bank auto loan offer in front of you is a good one, it probably is not.

There are a lot of better options than an Ally car loan if you are looking to get better interest rates, loan terms, and customer service. 

The post Ally Auto Loan Review (2024): Is It a Good Option? appeared first on FinMasters.

Each lender will have its own terms, and while 1800FreshStart.com doesn’t pull your credit, the lenders probably will.

Who Is 1800FreshStart Auto Loans?

1800FreshStart.com is one of many auto loan websites owned by Internet Brands, Inc., out of El Segundo, California.

Internet Brands has multiple car financing websites:

• InstantCarLoan.com
• CarsDirect.com
• InstantCarLoan.com
• Loanapp.com
• Loan.com
• Autos.com

Their primary focus is matching their dealer partners with customers that have a challenging credit background. They are a loan broker: they don’t actually fund any loans.

What Makes Them Different?

1800FreshStart car loans has developed a network of lenders specializing in auto loans for people with bad credit or no credit. Even borrowers with bankruptcy or repossession on their record can get approved.

Filling out one application can get you car loan offers from lenders around the nation. Having multiple offers will allow you to choose the best auto financing for your situation.

How Does 1800FreshStart Car Loan Work?

Meet The Guidelines

You need to meet the guidelines before you can apply:

• You must be at least 18 years old
• You must be a current resident of the US or Canada
• You must be either employed full-time or able to prove a fixed income of at least $1,000 a month.

Decide What You’re Buying: New or Used

You need to figure out what type of financing you will need. Are you buying a new car or a used car? Will you be refinancing, or are you looking for a lease buyout?

Once you know which option you are going for, then you can go to the next step. 

Follow The Process

Step 1 – Complete The Form

It takes 2 minutes or less to knock out the quick form to match you with an auto lender.

Step 2 – Pair Up

Once this process is complete, you will start the next step of getting paired with a lender that can finance you.

Step 3 – Find Your Vehicle Anywhere

Now that you have been paired, it is time to find your dream vehicle! 

Get Your Paperwork Together

Since you don’t know which lender you will use, it’s best to be prepared.

Things the lenders might need: 

• Banking history
• Proof of income
• Identification documents
• Proof of insurance
• Proof of residency
• Information on the vehicle you plan to purchase
• Current vehicle registration (if you plan to do a trade-in)

Note: Keep in mind this is just a general list. The lenders could need more or less information. It’s a good idea to have the things above ready. You’re likely to need them.

Time To Apply

Now that you know you meet the general requirements, you have all your documents together, and you know what auto dealer you will be matched with, it’s time to apply.

At this time, you will probably see a hard credit inquiry hit your credit profile. The credit bureaus will give you a 15-day grace period to shop for as many auto loan rates as you want and only show one hard inquiry in your record.

Quick Tip: The credit bureaus allow you to shop around for the best auto loan rates for 15 days after your first inquiry. During this grace period, you can apply for an unlimited number of auto loans without any additional inquiries being recorded to your credit file. 

Review Your Offers

Be sure to review the offers you get before making a decision. You will have up to 30 days to select one of the four offers presented to you.

You need to look at their requirements as well as interest rates and whether they will require a down payment or a co-signer.  Review the offers and pick the best one!

Look At Everything

Remember that each lender will have individual requirements. Be sure to look at each offer with as much detail as possible. 

Make sure you understand what you are paying for. Refer to the original offer to make sure nothing changed from the initial offer to the final agreement.

Pick The Best Offer

Once you choose an offer your loan can be funded by either bank deposit, ACH, check, or certificate.

You can have your funds as early as the next business day.

1800FreshStart Customer Reviews

1800FreshStart reviews from customers are difficult to find. 

There is very little information about 1800FreshStart com car financing programs because they are only a platform to bring lenders and buyers together. Most reviews talk about the lenders, not the broker.

The entire process is free to the buyer, so there isn’t much of a reason for them to complain, which we all know is the majority of reviews.

Our normal approach is to collect customer reviews from sites such as Yelp, Google, and BBB. However, we could not find many customer reviews for the 1800FreshStart car program and only on a few sites.

The few reviews we have been able to find are generally positive, as one would expect from a free service.

1800FreshStart does not have a file at the Better Business Bureau, although its parent company does. Internet Brands, Inc. is not accredited by the BBB and has a D- rating.

The reason they have such a low BBB rating is that they do not respond to the complaints filed against them. Over the past three years, they have had a total of 8 complaints, with one of those coming in the past 12 months.

Averaging one customer complaint a year doesn’t seem too high of a rate for a company that has been in business for 25 years. 

Who Should Apply at 1800FreshStart?

The best thing about 1800FreshStart com is that they deal with multiple auto lenders who are willing to work with a wide variety of borrowers, including those with less than stellar credit.

Below are some people who should feel free to apply:

People Who Have Had Repossessions

A repossession leaves a negative mark on your credit report and can hurt your credit score. It has a particularly dramatic impact on your FICO Auto Score, a credit score developed specifically for auto lenders.

It’s hard to get a car loan with a repossession on your record.

By dealing with the 1800FreshStart car program, you can find a lender willing to work with you, even if you had a car repossessed before. 

A Person With a Recent Bankruptcy

Someone with bankruptcy on their credit report is probably used to hearing the words “No” or “Declined.”

However, it doesn’t mean that you can’t purchase a car. 1800FreshStart should be able to match you with a lender that will suit your needs.

Someone With No Credit History

If you don’t have any credit, it doesn’t mean you have bad credit. It just means you haven’t had a chance to establish any for the moment.

It is hard for lenders to make a good decision because you haven’t shown if you will treat your credit well or not. 1800FreshStart auto finance has plenty of lenders that will work with you.

People with Little Credit History

If you have a thin credit file, you can still get an auto loan.

Your score might be in the mid to high 500s or low 600s, but that doesn’t mean you are financially irresponsible. It just means you haven’t had a chance or taken the time to build your credit.

1800FreshStart can help you get an auto loan.

Those with Bad Credit

If you have bad credit, don’t worry. 1800FreshStart works with a nationwide set of lenders who will be matched with you based on your credit profile.

You can rest assured that they work with lenders who can get you covered with a credit score as low as 500.

People With Good Credit

While 1800FreshStart doesn’t primarily focus on helping people with good credit, they are still a great option. If you have good credit, you will find that you can still get a great rate and find the dealer that will give you the best deal.

The Bad News

1800FreshStart can match you with auto lenders willing to make loans to people with poor credit, no credit, repossessions, or bankruptcies. The downside is that those lenders will charge you very high interest rates for your loan.

That’s not specific to 1800FreshStart, it’s just the reality of borrowing with bad credit.

That can make your loan very expensive. Before you commit to a loan, consider these steps.

• Wait a while. If you don’t need a car right away, take some time to build your credit or improve your credit first.
• Be realistic. Choose a car you know you can afford. Remember that things can go wrong. You don’t want a loan you can’t pay. If you aren’t sure, look for a less expensive car or a used car.
• Avoid long-term loans. 72 or 84 month loan terms make monthly payments seem affordable, but you’ll be underwater on your loan for much of its term, you may need additional insurance, and it will be hard to sell your car.

You can get a car loan with a low credit score. You’ll have to decide whether it’s the best move for you.

Taking Action On A Car Loan

Getting an auto loan can be complicated and expensive. 1800FreshStart can connect you with lenders who will lend to you even if you have a flawed credit record.

They cannot improve your credit or get you a low-interest loan with bad credit.

If you need a car and you have credit problems, be realistic about your expectations and understand that financing will be expensive. Get the right loan and make every payment on time and you can get the loan you need and improve your credit at the same time!

The post 1800FreshStart Auto Loan Review 2024: New and Used Car Financing appeared first on FinMasters.

Who Is Auto Credit Express^®? 

Auto Credit Express^® was founded by Rich LaLonde and has been around since June of 1999. Rich realized that the focus of the company should be on the consumer, utilizing the expertise of ACE and its employees.

Today, Auto Credit Express^® is an automotive property of Internet Brands, which owns and operates the largest network of car buying and financing resources in North America, including CarsDirect, Motor Authority, Green Car Reports, and The Car Connection.

Their primary focus is matching their dealer partners with customers that have challenging credit backgrounds.

Discover more auto lenders for bad credit.

What Makes Them Different?

Auto Credit Express^® has a nationwide network of 933 auto dealers in the United States that have closed over $1 billion in bad credit auto loans.

They specialize in working with people with credit issues to help them get financing for new and late model cars. They will work with people that have delinquencies and repossessions, and even people with bankruptcy discharges.

Their application process is really quick and easy. After filling a simple form on their website your loan request is quickly matched with a local dealer or lender who can finance your car purchase. You can also start this complete process either over the phone or online which is a great option.

How Does Auto Express Credit Work?

When you fill in a loan application on their website they match your needs with the guidelines of a local dealer. The dealer then contacts you with a loan offer and if you accept you can go to the dealership and shop for your new car.

Here’s what the process of getting a car loan through Auto Credit Express^® looks like in eight simple steps:

1. Meet The Guidelines

First, you need to meet the general guidelines before you can apply and those are: 

• At least 18 years old,
• A current resident of the US or Canada
• In a position to acquire auto insurance
• Able to show proof of residency, a working phone number, and a recent utility bill
• Employed full-time or able to prove a guaranteed fixed income of at least $1,500 a month.

2. Are You Buying New or Used

You need to figure out what type of financing you will need.

Are you buying a new car or a used car? Will you be refinancing or are you looking for a lease buyout?

Once you know which option you are going for then you can go to the next step.

3. Complete the Form

The next step is to fill in the application form on the Auto Credit Express^® website.

It takes 3 minutes or less to knock out the quick form.

4. Get Your Paperwork Together

Since you don’t know which lender or dealership you will be going to, it’s best to be prepared. Things the lenders might need are: 

• Banking History
• Proof Of Income
• Proof Of Identity
• Proof Of Insurance
• Proof Of Residency
• Information On Vehicle You Plan To Purchase
• Current Vehicle Registration (If you plan to do a trade in)

Keep in mind this is just a general list, the lenders could need more or less information, just have at least the things above ready.

5. Pair Up

Once your application is complete, you will start the next step of getting paired with a lender that can finance you. Auto Credit Express^® will start matching your application with the requirements of local dealers.

At this time, you will probably see a hard credit inquiry hit your credit profile.

6. Review Your Offers

Be sure to review the offer from the auto dealer before you purchase. You will be given up to 30 days to select one of the four offers presented to you.

You need to look at their requirements as well as interest rates and if they will require a down payment or a co-signer.  Just be sure to pick the best offer!

Remember that each lender will have its own specifics and requirements, so be sure to look at each offer with as much detail as possible. 

Make sure you understand what you are paying for, and keep referring to the original offer to make sure nothing changed from the time you accepted it to the time your loan was funded.

7. Pick The Best Offer

Once you choose an offer, your loan can be funded by either a bank deposit, ACH, check, or certificate.

You can have your funds as early as the next business day.

8. Visit The Dealership & Shop

Now that you have been paired, it is time to visit the dealership and shop for your car.

Our #1 Auto Loan Matching Service

Helping people with any-credit auto financing since 1999!
Fill out a simple form and get offers in minutes.

Get Started Online →

What Auto Loan Rate Should I Expect?

It’s really hard to say what rates you can expect to get when applying for a car loan with Auto Credit Express^®. The rates you get offered will be determined by the lender you get matched with.

Nevertheless, it’s always a good idea to be aware of the current state of the auto loan market so you have something to compare your offers with. Here are two tables showing different datasets for the current state of auto loan rates.

When it comes to interest rates, the longer time you plan to take to pay the loan off, the higher the rates become. While the monthly premiums will be lower if you select a longer payoff period, you are going to end up paying much more interest. Taking out a long-term car loan is rarely a good idea.

Average Car Loan Interest Rates by Credit Score

The next table worth taking a look at is the one below, showing you what an average interest rate is for new and used cars by credit score ranges.

*Actual interest rates are based on many factors such as state, down payment, and verification of credit score.

How Much Car Loan Can I Get Approved For?

How much financing you get approved for will depend on the lenders you get matched with.

When estimating how much financing you can get the lenders will look at your credit report to determine your creditworthiness, your income, and existing debts to determine if you will be able to make your payments…

Auto Credit Express^® has a handy Car Loan Estimator that will help you estimate how much financing you can get approved for based on factors like your credit score, income, and existing debt.

What Will My Monthly Payment Be?

Your monthly payment is determined by the following factors:

• Amount of the loan (price of the car – down payment)
• Interest rate (APR)
• Loan term

Once you know how much financing you can get approved for and what interest rate you can expect you can use Auto Credit Express^® Payment Calculator to estimate what your monthly payment could be based on the terms of an auto loan.

Auto Credit Express^® Customer Reviews

We looked at some of the most trusted customer review websites, such as Trustpilot, Yelp, Google, and BBB, to see what customers have to say about Auto Credit Express^®. Here’s the summary of what we’ve found… 

Positive Customer Reviews

Most positive reviews from customers say that they were happy with the service they receive. A number of people say that they managed to get approved for a car loan even they got turned down in the past for various reasons.

Auto Credit Express^® has over 2,711 5 Star Reviews from Trustpilot which shows that customers are having an overall great experience with the Auto Credit Express^®  process. Here’s an example of a positive customer review:

It’s really nice to see that folks over at Auto Credit Express^® reply to each of the reviews. This shows that they really do care what their customers are experiencing when using their service.

Negative Customer Reviews

Most negative reviews we’ve read are from people that were unaware that Auto Credit Express^® is not a direct lender and were surprised when they got contacted by various dealerships.

We saw various other complaints related to customers not being informed about how Auto Credit Express^® actually does. For example, this customer was unaware that they would not have their own choice of dealers but would instead be contacted by a dealer in the ACE network they get matched with.

Other customers complained about various aggressive ads and additional offers they got shown during an application process.

Most people complain about getting contacted by various insurance and other financial services providers after they submitted their car loan applications.

Auto Credit Express^® BBB (Better Business Bureau) Rating

Auto Credit Express^® has been a BBB accredited business for over 15 years. They have an A+ rating and have only had 7 user complaints.

Most Auto Credit Express^® BBB reviews are negative and they outline similar issues as other negative reviews we’ve listed above.

Who Should Apply for Auto Credit Express^®?

The best thing about Auto Credit Express^® is that they deal with multiple auto dealerships that are versatile in the type of people they can get approved for a loan.

Below are some people who should feel free to apply:

People Who Have Had Repossessions

The worst thing about having a car repossessed is that it usually happens that the most inconvenient time. 

If you have had this happen to you then you know it also leaves a negative mark on your credit report and can hurt your credit score.

By dealing with Auto Credit Express^®, you can find a dealership willing to work with you, even if you had a car repossessed before. 

People With Bankruptcies

Someone with bankruptcy is probably used to hearing the words “No” or “Declined.”  

However, it doesn’t mean that you can’t purchase a car because of one.

The good thing about Auto Credit Express®’s network is that they will be able to partner you with a dealership that will be best for your needs.

Someone With No Credit History

If you don’t have any credit, it doesn’t mean you have bad credit. It just means you haven’t had a chance to establish any for the moment.

It is hard for lenders to make a good decision because you haven’t shown if you will treat your credit well or not.

Auto Credit Express^® has plenty of dealerships with lenders that will work with you.

People with Little Credit History

If you don’t have a ton of credit history you can still get covered for an auto loan.

Your score might be in the mid to high 500’s or low 600’s but that doesn’t mean you have bad credit.

It just means you haven’t had a chance or taken the time to build your credit.

Auto Credit Express^® has plenty of lenders that will assist you in getting an auto loan.

Those With Bad Credit

If you have bad credit, don’t worry, Auto Credit Express^® works with a nationwide set of lenders who will be matched with you based on your credit profile.

You can rest assured that they work with lenders who can get you covered with as little as a 500 credit score.

Auto Credit Express Alternatives

Bottom Line

Hopefully, you found this Auto Credit Express^® review helpful because getting an auto loan can be complicated and a time-suck if done incorrectly.

If you have bad credit or have had a previous bankruptcy, you should consider using Auto Credit Express^® since they can help get you into a new car. While the interest rates you get offered might not be on the low end, at least they can help find dealers that will be open to working with you.

That said, ensure you know what you are getting yourself into. Auto Credit Express® is not a direct lender. They will share your personal information with various partners, and they will try to upsell you on other services every step of the way.

The post Auto Credit Express® Review (2023) | Car Loans For Bad Credit appeared first on FinMasters.

5 Best Carvana Alternatives

Like the cars themselves, not all Carvana alternatives are built the same. So, as always, let the buyer beware and don’t be afraid to test-drive these four (or, as we’ll see, perhaps five) vehicle e-buying platforms in pursuit of your dream vehicle.

1. CarMax

Undoubtedly Carvana’s biggest rival in the United States, CarMax touts itself as “the nation’s largest retailer of used autos” with “more than 220 locations around the country to meet customers wherever they are.” CarMax’s online portal features extensive research and rankings on new and used cars, electric vehicles, sports cars, best-sellers, and more.

Some folks might hesitate to purchase a vehicle online, but CarMax can help quell their anxiety with its “Love it or return it” 30-day money-back policy (with a limitation of up to 1,500 miles). Plus, CarMax combines its digital experience with real-life, try-before-you-buy, 24-hour take-home test drives.

For cost-conscious shoppers, CarMax’s big yellow “Shop with Budget” button signals the platform’s ability to work within one’s established price range. Beyond that, CarMax helps shoppers discover multiple financing sources right on the website.

We checked TrustPilot for reviews on CarMax. CarMax has a rating of 1.8 out of 5 stars on CarMax, which isn’t exactly a ringing endorsement. Recent reviews were either raves or rants, 1 star or 5, demonstrating CarMax’s apparently polarizing impact on its users (or at least, its reviewers).

Negative reviews involve consistent complaints of low offers for cars that CarMax is buying and unreported problems with purchased vehicles. Reviews of in-store purchases seemed slightly better, possibly because potential buyers were able to inspect vehicles directly.

One advantage CarMax has is that the Company does have a network of physical lots nationwide, something Carvana and the other online-only options don’t offer.

So, perhaps CarMax is a love-it-or-hate-it type of business, but there’s no denying that it has left an impression on people. If you do buy online from CarMax, it might be a good idea to have an independent mechanic inspect the vehicle and use that money-back return policy if it’s not up to expectations.

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2. Vroom

With a mission to help people “find their drive,” Vroom claims to provide “an extensive selection of vehicles, transparent pricing, competitive financing, and contact-free, at-home pick-up and delivery.” Vroom’s online portal isn’t as fancy or flashy as CarMax’s, but it does offer essential features like browsing by vehicle type and/or model. Plus, visitors can get an “instant” (or at least, within two minutes) appraisal for their trade-in vehicle.

Buying a vehicle entirely online requires a certain measure of faith, but Vroom takes measures to make the transaction as trustless as possible. In particular, Vroom allows potential buyers to “Spend a week (or 250 miles) getting to know your vehicle… If it’s not right, we’ll take it back.” There’s also a limited warranty included with all Vroom vehicles, good for 90 days or 6,000 miles; additional coverage will come at a cost, however.

Vroom, unlike some other e-dealers, seems to emphasize vehicle selling as much as buying.

Selling on Vroom is relatively pain-free: Enter your used vehicle’s basic stats, get a price quickly, and Vroom will “schedule a time to come pick up your vehicle, free of charge, anywhere in the lower 48 states.” Then, once Vroom has your car, they’ll send you your payment. So, perhaps Vroom’s selling point is quick-and-easy selling as the company’s portal seems to emphasize its “see what your ride is worth” functionality.

Turning to TrustPilot, Vroom only received an average rating of 1.5 out of 5 stars. Much of the criticism seemed to revolve not around the cars purchased through Vroom, but around the buying experience generally. You might want to decide whether the vehicle itself or the process of getting it is your main priority.

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3. Shift

Shift provides some peace of mind with the assurance that “Every car must pass our 150+ point inspection, or we won’t sell it.” Shift also strives to provide frustration-free financing and less worry about paperwork as Shift will handle the requisite DMV forms, title, transfer, and registration.

Shift reviews on TrustPilot were overwhelmingly positive at 4.3 out of 5 stars. Buyers and sellers alike seemed to generally appreciate the speedy, courteous service they received through Shift.

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4. CarLotz

CarLotz has a unique-looking website where viewers can browse through such vehicle categories as “Hard Working” (mainly trucks), “Adventure Ready” (SUVs), and “Environmentally Conscious” (electric vehicles, of course).

Visitors are invited to “buy with confidence” as CarLotz offers 133-point inspections and 30-day warranties on its vehicles. Plus, like Shift, CarLotz facilitates fast-and-ready quotes for trade-ins.

CarLotz has an average rating of 3.3 out of 5 stars on TrustPilot, which is decent but the small number of reviews made it difficult to draw meaningful conclusions.

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Shift just announced a definitive agreement to merge with CarLotz. Both Shift and CarLotz were already well-established vehicle dealers in their own right, so the merger could result in a true powerhouse in the online car-buying market.

It’s difficult to know what the new Shift/CarLotz might look like, but for the time being, shoppers can access either or both of these popular marketplaces.

5. AutoTempest

Now, for something completely different. AutoTempest is not a car dealer per se, but rather a portal that aggregates “millions of listings from dealers and private sellers, showing all the results for your search” from each of their listing partners.

There’s no need to browse through a half-dozen websites separately when AutoTempest will “capture all the results in a single search.” They’ll even provide comparison links for some large e-dealer sites that AutoTempest doesn’t (yet) have partnerships with.

After visitors enter basic search criteria for new or used vehicles, AutoTempest will serve up results from major used car sites – yes, including Carvana – but also from more generalist marketplaces like eBay and CraigsList. Furthermore, AutoTempest can scour the ‘net and provide results for personal-vehicle sellers, or visitors can simply browse through car reviews. And here’s a nice touch: AutoTempest has a handy guide on getting the most when selling a used vehicle online.

Navigating an aggregator like AutoTemptest may take some getting used to. Just the sheer number of results one will get from a simple search might be overwhelming. Also, AutoTemptest won’t necessarily hold your hand through financing and other parts of the automotive e-buying process, like other companies on this list. Still, if you’re a more savvy, advanced e-shopper and want to see what multiple sites offer in one fell swoop, AutoTempest will indeed provide you with a tempest of results so you can hopefully pick out the best and bypass the rest.

As of August 15, 2022, AutoTempest was listed on TrustPilot but didn’t have any reviews yet. So, as is the case with all online portals that involve the buying and selling of products, exercise due caution and check twice – or better yet, thrice – before you buy once.

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How Do the Carvana Alternatives Stack Up?

Carvana remains the original online car shopping option, and it’s still a solid choice. Carvana will deliver your selected car to your doorstep and send a representative to pick up your trade-in or a car that you’re selling. There are no physical lots.

Carvana will buy your used car, but you will probably get a better deal from a private sale. The same is true of most online dealers.

Carvana also gets mixed reviews. The Company has an average of 3.6 stars from 5,616 reviews on Trustpilot. Most users either loved the service (53% 5-star reviews) or hated it (27% 1-star reviews). That’s still a better average than many of the Carvana alternatives.

The mixed reviews may simply stem from the complications of buying and selling used cars online, and from unrealistic expectations from some buyers. It’s still worth looking over reviews just so you can see what other users reported and reach your own conclusions. Reviews are a useful tool but may not be an absolutely accurate representation of a company.

Should you use Carvana or one of these Carvana alternatives? The choice is yours. Different companies will suit different buyers. What’s important is that you look closely at the alternatives and make a decision based on your needs!

The post 5 Best Carvana Alternatives for 2024: Buy And Sell Cars Online appeared first on FinMasters.

Best Companies to Refinance Your Auto Loan

Many lenders that don’t offer auto loans directly will offer car loans for refinancing purposes. There are even loan matching companies whose main service is matching you with auto refinance loans.

We’ve limited our list to low-fee refi options available nationwide. These options all offer an online application process and APRs well below the current national average.

1. RateGenius – Best for bad credit
2. Lending Tree – Best for no credit or new credit
3. MyAutoLoan – Best auto refinance loan marketplace
4. Navy Federal – Best for older and high-mileage vehicles
5. AutoPay – Best for cash-out refinance
6. DCU – Best for fair credit
7. Upstart – Best for college students

To help narrow down the list of the best car loans for refinancing, we’ve gathered some key facts and features of each lender/matching service presented below.

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1. RateGenius

This loan matching service specializes in auto refinance loans. You can start with their inquiry-free pre-qualification process to view a list of personalized lender offers.

RateGenius can offer loans to individuals with credit scores as low as 400, and the APR for these poor-credit loans can start at 11.84%. That’s not a cheap loan, but in the current (as of October 2023) rate environment it’s as good as a borrower with poor credit can expect.

How Much Does It Cost?

While some sources suggest that RateGenius charges you a direct fee for using their services, we verified with RateGenius staff that they do not charge you directly.

However, RateGenius states that lenders can charge origination fees, prepaid finance fees, and title fees.

Starting APRs are 4.67% for those with good credit and 11.84% for those with poor credit (below 640 credit score).

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2. Lending Tree

LendingTree offers a wide variety of loans, including auto loan refinancing. When you fill out your loan application, they’ll match you with up to 5 lenders from their network of over 500 lenders.

This large network of lenders allows Lending Tree to offer competitive terms such as low APRs, small & large loan values, and loans for individuals with poor credit.

Read our full review of Lending Tree’s auto loan matching service.

How Much Does It Cost?

Lending Tree doesn’t directly charge fees, but the matching service does warn that individual lenders may charge a fee, but Lending Tree advises in the FAQs section that this should be $100 or less.

LendingTree advertises APRs starting as low as 4.49%. 

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3. MyAutoLoan

MyAutoLoan offers a variety of auto loans, including auto refinance loans. During the prequalification process, you can compare up to 4 offers simultaneously.

And not only is the application process quick and easy, but once you select your loan, you can get final approval in as little as 30 seconds. And you can receive your loan funds within 24 hours.

How Much Does It Cost?

MyAutoLoan is a matching service, and filling out their application is 100% free.

Each lender you are matched with charges you APR and may charge you additional fees, so read your offer terms carefully.

The starting APR MyAutoLoan advertises for refis is 4.49%. This rate is based on repayment terms of 24-72 months. Shorter or longer repayment terms will result in a higher starting rate.

MyAutoLoan is not currently available in Alaska or Hawaii. 

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4. Navy Federal

One of the largest credit unions in the nation, Navy Federal offers a variety of lending and banking services, including auto refi loans.

NavyFederal’s not-for-profit model means it can offer competitive terms on its loans. This includes repayment terms of up to 96 months, no set mileage cap, and acceptance of vehicles up to 20 years old.

Vehicles over 20 years old will require a special antique auto loan.

How Much Does It Cost?

Navy Federal does not charge application or origination fees. In fact, this credit union often offers cash incentives for refinancing with them.

While no membership fee is required to join Navy Federal, you must be in the military or a family member.

The lowest advertised APR for refi loans is 4.54%, which includes an active duty discount of 0.25%. This rate applies only to newer vehicles financed for short terms. The starting APR for a 3-year-old vehicle refinanced for 72 months is 5.84%.

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5. AutoPay

AutoPay offers matching services for various auto financing solutions, including refis.

As a part of its refinance offerings, AutoPay has a dedicated cash-out refinance option that lets customers borrow up to $12,000 more than their current car is worth. This can help give customers access to emergency cash.

How Much Does It Cost?

AutoPay does not charge you any fees directly; however, the individual lenders you are matched with could charge origination fees, finance fees, etc.

AutoPay advertises customers receiving rates as low as 2.99% for refi loans.

With the cash-out refinance option you could get quick access cash, as much as $12,000 more than your vehicle’s value. And you can use this cash however you want, i.e.,  for debt consolidation, medical bills, etc.

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6. DCU

DCU Credit Union offers various banking and lending services, including auto refinance loans. 

There are very few limitations on DCU’s loans, and unlike Navy Federal, membership to this credit union is open through various communities, employers, and organizations.

While DCU doesn’t state any credit score, history, or income requirements, the rates they advertise are for excellent credit. That said, DCU does allow you to prequalify for a refi loan, even if you are not yet a member.

How Much Does It Cost?

DCU does not charge any refi-related fees. However, if you do not qualify for membership through your employer, community, or other credit union member, you will need to join a partner organization.  This will require a donation ranging from $10 to $120.

The starting APR DCU advertises for auto refinance loans is 6.74% without any discount. If you qualify for the autopay discount of 0.5% and energy-efficient vehicle discount of 0.25%, the lowest rate possible is 5.99%.

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7. Upstart

Upstart uses a unique AI technique for qualifying borrowers. Instead of being dependent on just your credit score, Upstart’s proprietary method for determining your creditworthiness includes income, education level, degree path, and more. 

This original approach has reportedly helped lenders decrease loan defaults and helped individuals with poor credit qualify for an auto loan refinance. This refi option can be particularly useful for college students and young professionals who don’t have much credit.

Car refinance loans are not available in MD.

How Much Does It Cost?

Upstart does not charge any fees, and APRs can start as low as 5.61%. However, this low rate would be for those with excellent credit.

Upstart states that, dependent on the state, APRs can top out between 17.99% and 29.99%. The current quoted average APR customers have received on a 5-year refinance loan is 18.86%.

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Comparing the Best Car Loan Refinancing Options

To help you choose the perfect lending fit from our best car loans for refinancing list, the table below outlines the key loan features offered by each of these lenders or loan matching services.

How to Save Money on Your Auto Loan Refinance?

There are three main reasons for refinancing your car loan:

• Save money by lowering the interest rate
• Lower the monthly payment by extending the repayment terms
• Use equity for other debts by using a cash-out refinance

Depending on why you are refinancing, there are steps that you can take to make sure you get the best deal.

Watch Out for Fees

Lenders and loan marketplaces can charge a variety of fees, such as application fees, origination fees, finance fees, and more. While none of the lenders on our list charge fees, the matching services we listed warn that some of their lenders could charge these fees.

It’s worth noting that all lenders charge applicable government fees, such as title transfer fees. However, some roll this into the APR, and others charge for it separately.

You’ll also want to investigate your original loan for any fees, such as early repayment penalties.

Get the Best Rate

One of the best reasons to refinance your auto loan is to score a lower interest rate. You should also keep an eye out for any rate discounts or cash incentives a lender might offer.

Also, beware, most auto loans are front-loaded. This means early payments have more interest and later payments pay more towards the principal. This is why refinancing early is important. Check out our refinance calculator for more information.

Avoid the Add-Ons

One of the biggest expenses associated with a refi is the add-ons the lender will try to sell you. This can include:

• Gap insurance
• Vehicle service contracts
• Dent repair services
• Auto insurance quotes
• Etc. 

These little add-on services are often a way for the lender/marketplace to generate extra revenue, so try to avoid them. But if you are interested in one or more of these services, shop around first; you could get the same or better service elsewhere for cheaper.

Learn more about how to refinance a car loan and when is a good time to refinance.

Bottom Line

Many banks, credit unions, and other lenders offer various auto loans, so how do you find the best car loans for refinancing?

Paying attention to the terms offered is important. If you travel a lot for work and your vehicle has a lot of miles on it, you’ll need to find a lender that specializes in high-mileage loans.

Or, if you are looking for a cash-out refinance, you’ll want to find a lender that specifically advertises it, as many lenders don’t want to take on this risk.

Depending on what you are looking for in an auto refinance loan, there are a variety of lenders who can work with you. Matching services can help you sort through all the options, or you can explore services locally.

Ultimately the best auto refinance loan is the one that fits your needs.

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