#1 PenFed Credit Union: Top Credit Union
Based on our research, these providers are among the top car loan lenders in the industry, and we’ve ranked them after evaluating their rates, reputations, availability, and customer service. Be sure go now to compare personalized quotes from lenders before making a decision.
*Auto Approve only offers auto loans for refinancing and lease buyouts. This rate reflects the company’s starting APR for refinancing.
**Bank of America’s starting annual percentage rate (APR) may vary by state. The APR shown here is for New York.
When it comes to the best auto loan rates, each provider offers varying rates to car buyers in different situations. While one lender may offer lower interest rates for borrowers with good credit than other financial institutions, another provider may specialize in lending to people with bad credit. We’ve noted the starting APRs for top providers in the table above, but only borrowers with excellent credit will be eligible for rates that low.
Each of our five best auto loan providers has its benefits, as well as drawbacks. Based on what we learned from studying the top auto lenders in the country, our team recommends the following providers to start your search for the best auto loan rates.
Starting APR : 0.99% for new vehicles, 1.99% for used vehicles Loan amounts : $500 to $100,000 Loan terms : 36 to 84 months Availability : 50 states Minimum credit score : 610
Pentagon Federal Credit Union, or PenFed, is a military credit union that offers some of the best auto loan rates on the ed it Top Credit Union for auto loans because of its availability and fantastic rates.
While PenFed is priilies, it is also open to people who work for certain government agencies and nonprofit organizations. Even if you don’t fall into any of these groups, you can join by making a donation to an approved charity.
At 0.99%, PenFed’s starting APR for new vehicles is the lowest of any of the auto loan providers we researched. To get that rate, however, you’ll need to buy a new car through PenFed’s car buying service. If you shop for a car on your own, the APR starts at 1.79%. Like with most credit unions, PenFed members are eligible for special deals, such as discounts and reimbursements for shopping at partner dealerships.
However, qualifying for a PenFed auto loan might be hard for some. The credit union only accepts borrowers with credit scores of 610 or higher. In addition, PenFed has a steep $29 charge for late loan payments.
PenFed Credit Union reviews
PenFed is not accredited by the Better Business Bureau (BBB), but it does carry an A+ rating from the organization.
Customer ratings for PenFed Credit Union are among the highest in our research. The organization has an impressive 4.7-star rating out of 5.0 on Trustpilot. Customer ratings are considerably lower on the BBB website, however, where reviewers give PenFed 1.2 out of 5.0 stars.
Positive reviews consistently mention a smooth and easy loan application process and low rates. Customers reporting negative experiences tend to mention slow processing times for loan applications.
Our team reached out to PenFed Credit Union for a comment on these reviews but did not receive a response.
#2 Auto Approve: Top Choice for Refinance Auto Loans
Starting ounts : $5,000 to $85,000 Loan terms : 12 to 84 months Availability : 50 states Minimum credit score : 580
Auto Approve has a reputation as a refinance auto loan specialist, but the company’s lease buyout option makes it a viable choice for people looking to purchase vehicles. And given the company’s strong industry reputation and high customer ratings, our team felt it was worth including.
