Auto loans have been given at low interest when compared to other loans for a long time now. Loans from dealers and other financial institutions are always given at lower rates. Big auto companies like Ford, Chrysler, and GM have a history of providing auto loans only to consumers buying their respective vehicles. The lowest auto loans come from car dealers and agencies, and the national average of auto loans interest rate in 2018 has been 4.21%. These auto loans are only based on one’s credit history, score and loan term. The lowest auto loans work typically on the annual percentage rate, which ranges between 3% and 10%.
Customers who have a high credit score (let’s say 760 and above) are the chief applicants considered and approved initially itself for auto loans. The lowest auto loan can be given to such customers with an auto loan interest rate of 2%-3%. Those with a credit score of 580 and less are at a higher risk of not getting an auto because banks and financial institutions give importance to credit history. If you fail in these criteria, you could either go in for higher interest rates auto loans or wait till your chance arrives. Listed below are the financial companies providing the lowest rate auto loans.
Lending Tree
Their annual percentage rate is as low as 2.29% for a span of 24 to 84 months. You will need to fill an online form for obtaining this auto loan and there are many options you can choose from. Once you complete the form, only then can you see the interest rates you are going to be charged. They give instant approvals.
Light Stream
The interest rate varies based on the time and amount you choose the auto loan for. Term offered is from 24 to 84 months only. Interest rates for 24 to 36 months on an amount of $5,000-$10000 come to 3.99%-6.49%. Interest rates from 37 months to 48 months on the same amount come up to 4.84%-7.09%. Auto loan amounts offered range from $5,000 to $100,000.
Capital One Auto Finance
Here, auto loans are given on the basis of credit score. Rebuilding, average, and excellent are the three categories the credit scores of applicants fall into. Loan amount offered ranges from as low as $4,000 and goes up to $40,000, and the term is from 36 to 72 months. The auto loan interest rate for 36 months is 6.41%, for 48-60 months is the same 7.48%, and for 72 months is a little higher at 9.88%.
Springboard Auto
The company prides on its one-minute approval and application system. Lowest auto loans are given by them and amount ranges from as low as $7500 to as high as $45,000. The interest rate is 8.29%. There are no repayment penalties here; hence, this is safer for people who default on their payments often. There is an origination fee of around $395 for dealer purchase and around $295 for refinance.
