Best Auto Loan Rates for October 2019

Banks Editorial Team · October 25, 2019

You want to get the best auto loan rates when buying a new or used car, or even refinancing your current auto loan. In order to choose the most advantageous loan terms, it is important to take some time to research all of your options.

 

 

Understand Auto Loan Details

Loan rates offered by lenders will vary based on a number of criteria. Understanding the details will go a long way toward helping you make the right choice when finding the best auto loan rate:

1. Your Financial Status

When considering your loan application, the lender will take into account your current financial status. Not only will they check your credit score, they will ask you to verify your current income, and whether you have any outstanding debts. If your credit score is lower, you can expect more restrictive loan terms and higher interest rates. The length of your loan term may be adjusted based on your income and outstanding debt, as the lender will want to ensure that your repayment terms are within your financial abilities.

2. Length of the Loan Term

The term of your loan reflects how long you expect to be paying the loan back. The longer your loan term, the less you will have to pay monthly; however, the interest you pay will be higher for longer terms, and you could end up paying much more for your vehicle over time. Before agreeing to a longer loan term for lower payments, calculate the amount you would pay for the life of the loan, interest included. If you are going to be paying significantly more than the vehicle is worth, you may want to consider a shorter-term financing option.

3. Vehicle Specifications

Finally, when determining your loan conditions, the lender will consider the total price of the vehicle and all inclusions, to determine whether they are willing to finance the total amount. They may also consider the vehicle make and model and age of the vehicle when deciding how much they are willing to risk loaning. If the vehicle is used, they may look at the vehicle’s history and consider it’s current condition. If the vehicle is in poor condition, they may not be willing to risk a default, should there be a problem with the vehicle.

4. Your Location

If you are purchasing a vehicle in Texas, your loan provider will offer different rates than they would if you are living in Colorado. Depending on the frequency of accidents, natural disasters, and economic stability of the area, the best car loan rate can vary significantly. Be sure that you are getting quotes for the correct location, in order to determine the budget for your car payments.

 

 

Current Auto Loan Rates for October 2019

With all of these considerations, it can be difficult to know where to begin when it comes to auto loan rates. To help you start the process, we have compiled a list of banks with the best auto loan rates of October 2019:

1. Car.Loan.Com

With loans starting as low as 1.99% for low-cost vehicles, Car.Loan.Com is a great option for a small new or used vehicle. They also offer financing options for people with bad credit or no credit. Fill out an application on their site for a detailed quote.

2. Carvana

If you haven’t already chosen a vehicle, you might consider Carvana, an online resource for vehicles and financing. Carvana offers rates beginning as low as 4.5%, with no early payment or payoff penalties. For more information on their available vehicles and financing options, visit their website. They also offer a rate comparison calculator to compare to the current rate averages in your state.

3. Lending Tree

If you have poor credit, consider applying for financing with Lending Tree. Their current rates start at 3.09% on new vehicles, and they do not have a credit score limit; however, interest rates are adjusted based on income, credit score, and vehicle information. Visit their website to use their online calculator, for an accurate quotation.

4. LightStream

LightStream auto loans offer rates ranging starting at from 5.24% for loans between $5,000 and $10,000, and 3.99% for loans over $10,000. For a better idea of the amount you can expect, you can visit their website for a detailed graph. If you already have a vehicle in mind, use their rate calculators to determine your interest rate and monthly payments.

Watch for Hidden Fees

While you research your potential auto loan rates options, be sure to look at all of your loan options and watch for hidden charges and fees. Lenders may offer rates that seem too good to be true, and then tack on additional fees or penalties for early payments or paying off your loan in full. Keep your eyes open and do not hesitate to compare information from multiple lenders. Take the time to research your options, and you are sure to find the best possible car loan rates for your needs!

 

 

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