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Who Offers The Best Auto Loans In 2020?

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Finding the best auto loans can be tricky. There is a sea of providers out there, and getting stuck with a bad loan can mean years of debt. The difference between a good interest rate and a bad interest rate can add up to thousands of dollars after all is said and done.

When making any major financial decision, it’s important to compare options. This list will point you to a number of reputable auto loan providers to help you decide where to apply. We’ll also explain the application process as well as tips for how to get the lowest auto loan interest rates.

To start comparing the best auto loans from multiple lenders, visit AutoCreditExpress.com.

 

In this article:

Best Auto Loans: 10 Top Providers

There is no one best auto loan provider for everyone. While most people looking for loans will want to find a provider offering the lowest annual percentage rate (APR), the interest rate you receive depends on your credit score as well as a number of other factors. Different financial institutions may also offer different minimum and maximum loan amounts.

Finding the best provider also depends on which type of loan you need: a purchase loan or a refinancing loan. The table below shows some information for a few of the best auto loan providers for a variety of borrower types. Some of the providers listed below administer loans directly to customers, while others are brokers that match customers with loans. Both can be good places to start when looking for the best auto loans.

Auto Loan
Provider
Minimum
Credit Score
Minimum
Annual Income
Loan Amount Lowest APR Offered Broker or Administrator
PenFed
Credit Union
610 Not specified $500 to $100,000 1.39% Administrator
Auto Approve 580 $18,000 $7,500 to $150,000 1.90% Broker
RateGenius 550 Not specified $12,000 to $100,000 1.99% Broker
Autopay 630 Not specified $2,500 to $100,000 1.99% Broker
myAutoloan 575 $18,000 for refinancing,
$21,000 for purchase loan
$5,000 minimum 2.39% Broker
Tresl 500 Not specified $5,000 to $100,000 2.49% Broker
Bank of America Not specified Not specified $7,500 minimum 2.69% Administrator
Consumers
Credit Union
620 $24,000 No minimum 3.34% Administrator
LightStream Not specified Not specified $5,000 to $100,000 3.49% Administrator
Auto Credit
Express
No minimum
credit
$18,000 Varies by lender Varies by lender Broker
 

Based on the available information, we think some of the best auto loans can be found from the following companies:

  • PenFed Credit Union: Lowest APR
  • Auto Approve: Best for Refinancing
  • Auto Credit Express: Best for Bad Credit

PenFed Credit Union was initially started to serve military members and their families, but its services have since been made available to the general public. While not accredited by the Better Business Bureau (BBB), PenFed Credit union has an A+ BBB score.

The credit requirements for a PenFed Credit Union loan are higher than many other lenders, but it offers some of the lowest interest rates in the industry.

PenFed does have a moderate customer review reputation online, though most complaints filed through the BBB regard PenFed home loans. Also, given the size of PenFed, the number of customer complaints is relatively low.

PenFed Credit Union Pros PenFed Credit Union Cons
Offers exceptionally low interest rates Moderate customer service reputation
A+ rating from the BBB Does not offer loans to drivers with poor credit
  Customer reports describe a slow application process
 

Auto Approve only offers loan refinancing, not purchase loans. However, it does this well. While drivers with poor credit may not be eligible for an Auto Approve loan, those who are eligible may find interest rates as low as 1.9 percent.

Auto Approve holds BBB accreditation, an A+ rating, and a perfect 5.0 out of 5.0-star customer review score based on over 500 reviews. As even a one-percent interest rate reduction could save you hundreds of dollars, there’s no reason not to see what refinancing offers you can find with Auto Approve.

Auto Approve Pros Auto Approve Cons
Low interest rates Only offers loan refinancing, not purchase loans
Strong customer service reputation Does not offer loans to drivers with very bad credit or no credit
Easy and fast application process  
 

To learn more about this provider, read our complete Auto Approve review.

Auto Credit Express specializes in loans for customers with poor credit. The company even has representatives that can help loan seekers build their credit scores through their loan repayments.

Customer experiences with Auto Credit Express vary, but few loan providers look to work with customers who have especially bad credit. If you need a vehicle and are having difficulty securing a loan because of poor credit, Auto Credit Express can help. Even drivers going through a bankruptcy or repossession may be able to secure an auto loan from Auto Credit Express.

Auto Credit Express Pros Auto Credit Express Cons
Offers financing for customers with bad or no credit Currently has a BBB alert regarding licensing issues
Pairs customers with loans based on credit profile Poor customer reviews
Offers special rates for military members  
 

To learn more about this provider, read our full Auto Credit Express review.

 


 

Types Of Auto Loans

In general, car loans can be divided into two categories: purchase loans and refinance loans. A purchase loan is a loan taken out in order to purchase a new or used vehicle. Some lenders may work through dealerships to provide purchase loans, and others may offer to provide loans for private purchases as well.

There are also purchase loans for lease buyouts, in which drivers choose to purchase a vehicle after leasing it for an amount of time.

A refinancing loan is a second loan taken out to pay off an existing auto loan. The reason drivers may choose to refinance a loan is if the new loan offers a lower interest rate, meaning that they will pay a lower overall cost.

People whose credit score or income has recently changed may be interested in a refinancing loan. Or, if you feel that your original loan has particularly bad terms, refinancing your loan with a better lender can save you money.

 


 

How To Apply For An Auto Loan

Many lenders allow borrowers to apply for an auto loan entirely online. In some cases, borrowers can receive same-day financing. Typically, to apply for an auto loan you will need to supply the following information:

  • Personal details such as name, address, and age
  • Social security number
  • Gross annual income information
  • Vehicle information such as vehicle identification number (VIN), age, and mileage

You may also be required to show or submit a copy of the following documents:

  • Driver’s license
  • Pay stubs
  • References

When you apply for a loan, some companies may offer you the opportunity to have a cosigner, another person who will assume responsibility should you fail to make your loan payments. A cosigner may be required for people with exceptionally poor credit.

 


 

How To Find The Best Auto Loan Rates

When shopping for the best auto loans, you’ll get access to the lowest rates if you have a good credit score and financial history. The more money you have, the cheaper interest rate you will be offered. Customers with high credit scores, many assets (such as a house), and a high gross annual income will qualify for the best rates.

If you are trying to improve your credit score, be sure to do the following:

  • Pay your bills on time
  • Pay off credit card bills in full each month
  • Don’t take out many large loans
  • Check your credit report and dispute any inaccuracies
  • Pay down as much existing debt as possible

Building your credit score can take years, and many people may need an auto loan sooner than they can rebuild low credit. In the short term, you can find good loan terms by comparing offers from multiple lenders and by having someone with strong credit cosign your loan.

To start comparing the best auto loans from multiple lenders, visit AutoCreditExpress.com.

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Warner Robins GA Credit Repair Finance Score Improvement Service Launched

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New credit repair services have been launched by the expert team at Fresh Start Consumer Services. They work with clients in Warner Robins, GA and the surrounding areas.

New credit repair services have been launched by the expert team at Fresh Start Consumer Services. They work with clients in Warner Robins, GA and the surrounding areas.

Fresh Start Consumer Services has launched a new credit repair service for clients looking to improve their financial future. Interested parties can sign up for credit consultations, in-depth credit analysis, credit recommendations and more.

Full details can be found at: https://freshstartconsumerservices.com/index.html

The newly launched services are designed to ensure clients can repair bad financial credit history, track their improvement campaign in measurable ways, and secure a better future for themselves and their family.

Clients can work with Fresh Start Consumer Services to clean up their past. This is achieved by working with the major credit bureaus and creditors to challenge the negative report items that affect the credit score.

Based in Warner Robins, GA, the expert team at Fresh Start Consumer Services is passionate about helping citizens to improve their credit score to give them more buying power. As a result of this, clients are able to secure more options in life.

The team understands that sometimes bad things happen to good people, and their services are designed to ensure that clients can get the most out of life. They also realize that a bad credit score can harm clients’ quality of life – and can be a difficult situation to get out of.

Fresh Start Consumer Services offer courses in credit repair and restoration, budget management, credit education and purchase assistance. Clients get easy access to their account 24/7 for live status updates on improvements, allowing them to fine-tune the management of their credit score.

Service options include personalized dispute options to fit each clients’ exact credit repair needs, an experienced case analyst and case advisor working personally with them throughout the process, custom dispute letters, and more.

For clients, there are a number of reasons to work with a credit repair specialist. Clients are able to secure significant savings on interest rates, attain better terms on loan products, and get access to the best credit card deals. They also gain access to more housing options.

The team states: “Fresh Start Consumer Services offers a unique combination of services that gives our clients the quality of life they deserve. We specialize in helping our clients achieve qualifying credit and the financial health they desire.”

Full details can be found on the URL above.

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Is it Possible to Trade In a Car Early?

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Yes, early trade-ins are possible when you finance a vehicle. In fact, there’s no set time frame on trading in a car. Most dealers won’t take a trade-in that’s too fresh, though, and it’s best to wait until there’s equity in your vehicle before you try to trade it in.

What’s a Trade-In?

When you trade in a car, you’re essentially selling it to a dealership and financing something else from their lot, without the hassle of selling and buying with separate transactions. There are no hard-and-fast rules about how and where you have to trade in your vehicle.

However, it’s beneficial to shop around and see which dealers can give you the best price, but you shouldn’t just head to a car lot and ask what they’re willing to offer you. When the time comes, there are several steps you may want to take to get ready for the trade-in process, especially if you’re looking to trade in early before you’ve had the chance to close the equity gap.

Trading In Early and Equity

Are Early Trade-Ins Possible When You Finance a Car?When you’re trading in a vehicle soon after you’ve financed it, you’re more likely to be in a negative equity position – owing more on your auto loan than the car is worth.

This is especially true if you financed a new vehicle, or a certified pre-owned car. Newer vehicles depreciate faster than used ones, which have typically already seen their biggest drop in value.

Depreciation is the loss of value over time and it can’t be stopped. It can be slowed, though. The best way to do this is by using a large down payment when you finance. This reduces the amount you have to borrow, and leaves you owing a price closer to what the car might cost after you drive it off the lot. New vehicles typically lose around 10% of their value as soon as they touch the road.

If you don’t have the equity to recoup your investment in a car, you have to make up that difference out of your own pocket. It’s much easier to trade in a vehicle that can pay for itself, but this isn’t always possible when you’re trying to do so early.

Preparing Your Early Trade-In

When you know that you’re starting with a deficit on your trade-in, it’s a good idea to be prepared to get the most you can. Clean the car thoroughly, both inside and out, and make sure to fix any minor damage that may have occurred in the short time since you took out your loan.

Getting the vehicle detailed and fixing major mechanical issues isn’t likely to result in a worthwhile increase to the cash in your pocket, so don’t go overboard. Remember, you want to make as much money on this trade as you can, and it’s probably cheaper for the dealership to fix any large issues.

Before you set foot in a dealer to get your trade-in appraised, it’s a good idea to know approximately how much your car is worth. You can find this out by going to online valuation sites such as Kelley Blue Book or NADAguides. Be sure to be honest when you’re inputting information, since it’s the only way to get an accurate estimate of possible value.

Shopping for Trade-In Values

Once you have the estimates (which you should print or save to your phone), it’s time to take your trade-in to get looked at. Taking it to a few different dealerships is a good way to find the best deal you can.

We recommend taking your early trade-in to at least three different dealers, making sure at least one of them is a franchised dealership that sells your vehicle’s brand. A franchised dealer that sells your car’s brand may be more likely to offer a higher price.

Depending on your credit situation, it’s likely a good idea to ensure you’re trying to trade in your vehicle to a dealership that can work with your situation, especially if you have poor credit. And that’s where Auto Credit Express can come in handy.

We have a nationwide network of special finance dealers that are signed up with subprime lenders who can help people in many different types of credit situations, including bad credit, no credit, and even bankruptcy.

The process is easy to get started – just fill out our free auto loan request form. We’ll match you to a local dealership that can get you started on the financing you need after your early trade-in.

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Jackson receives financial reporting award

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JACKSON, Mich. (WILX) – The City of Jackson is getting international recognition for its transparency in financial reporting.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to Jackson for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2019.

The CAFR was judged by an impartial panel to meet the high standards of the program. Standards include demonstrating a constructive “spirit of full disclosure” to clearly communicate the financial story of the City and encourage users and groups to read the CAFR. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting.

“This is great for the City as a whole because it improves our bond rating,” said City Manager Jonathan Greene. “We believe this award will help our residents understand the work we do to make the City’s finances transparent and easy to understand.”

Bond Ratings are letter grades assigned to bonds that indicates good or bad credit for an entity like the City of Jackson. By having a strong bond rating cities are granted opportunities to pay back interest at lower rates.

The CAFR can be viewed HERE.

Copyright 2020 WILX. All rights reserved.

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