This compensation may impact how and where products appear on this site including, for example, the order in which they appear. It is this compensation that enables Auto. Loan best auto loan rates provide you with services like free access to your credit scores at no charge. Loan strives to provide a wide array of offers for our members, but our offers do not represent all financial services companies or products. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0. The lowest rate in each range is for LightStream's unsecured auto loan product and requires that you have an excellent credit profile. Advertised rates and terms are subject to change without notice. LightStream and SunTrust are federally registered service marks of SunTrust Banks, Inc. All other trademarks are the property of their respective owners. How to Get Best Auto Loan Interest Rates The auto loan industry is on the rise in the U. This means that many of the big banks are clamoring to get business from car buyers who are looking to take advantage of the relatively low interest rates right now. We share some critical info that makes our service uniquely helpful to you where no other site, bank, or lender, can. But they are a bit sneaky is showing the best possible rate, instead of the average rate. There are few exceptions to this. So, what if you apply on your bank website. That means your odds of getting the low rates they show is 1 in 20, so you might as well be playing a lottery. As soon as you complete your application with them, they may come back with much higher rates. But at least we take into consideration several factors that most lender websites wont, so while you may see higher rates on our site, its probably because the rate is much closer to reality. Your credit score is the single most important factor in determining your loan rates. It can mean the difference between a 2% and a 20% interest rate. Now, you do not need to know exactly, but being within 50 or a 100 points is pretty valuable if you want to see accurate rates on our tool. You can typically order a copy of your credit report for free once every 12 months from the government. It can take awhile, and requires a fair amount of work, so if you are just wanting to save some time, try to use your last known score. Many lender websites will not tell you what the credit score cutoff is for approving a loan to you, meaning, a particular lender might only take customers with scores of 690+. The good news is that when it comes to auto loans, most credit scoring systems simply ignore auto loan related inquiries on your credit score, and even combine multiple inquiries done in a short period of time as a single inquiry. This is pretty common sense if you have ever taken out a loan before, whether car, home, or even credit card. Short loan length: A shorter loan length e. Either way, you can always pay down your loan faster than what you signed up for. Always a good way to save money. Do not fall victim into getting sold on a longer loan term just because it lowers your monthly interest. Best auto loan rates loan terms are to the advantage of the lenders because they get to collect interest payments for a longer period of time. Also, remember that your car depreciates in value rather quickly. An extended financing period means that you could be stuck making loan payments on a car that is no longer in good condition to drive or is worth less than the outstanding balance of your loan, which could become problematic if you go to sell it later, and can sell it for less than the amount owed. Down Payment Size: Finally, remember that the larger down payment you make, the more you save on interest best auto loan rates well. Borrowing at high rates is something to be avoided if you can. Additionally, if your credit score is really low, you may not qualify for financing at all from some of the major lenders. Even if they best auto loan rates not a lender you recognize by name, remember that you can always read the reviews on our site to see what other users have to say about their experience. Best auto loan rates is a common option for car owners who currently have a high interest rate loan. To see if you can get lower rates today, simply use our tool above. Be aware that you will probably incur some upfront costs when you refinance, on top of the monthly loan rate. This is a given for any type of loan refinancing. Fixed: A fixed auto loan rate means that your monthly loan payments will be the same throughout your entire loan term because the interest rate never changes. This is a good option if you are able to lock in a reasonable rate right off the bat. Most auto loans use a fixed rate. Variable: On the other hand, an auto loan with a variable rate means that the interest rate can fluctuate according to an index. Your monthly loan payments will go up or down depending on what is happening with the index, which is mostly dependent on the base rate set by the Federal Reserve Bank of the United States. The benefit to a variable rate is that the rate tends to be lower than the fixed rate option. You need to be careful, however, because the interest rate can increase right away. If you have an extended loan term, this is even best auto loan rates because there are more opportunities that you will be stuck paying a higher interest rate for each month if interest rates go up over time. On the other hand, if you expect national interest rates to drop over time, then variable rate may be a better best auto loan rates if your prediction is right. If you like knowing what you will pay every month for the life of the loan, and are not a big risk taker, then you should stick with fixed rates. This is good for you because it gives you a much more precise look at how much the loan will really cost you after fees. As with any type of debt, your credit score one of the major factors that determines how much you pay in the long-run and if you even quality for a loan in the first place. The cost of auto debt is wholly in part determined by your credit. Someone with a 550-credit score could end up paying 10% more than someone with a credit score of 710. As you can imagine, this could end up being several thousands of dollars more throughout the life of the loan. For example, refinancing is a common method used to grab a lower interest rate and save money in the long-term. Whether you have a loan or already or are in the market for one, these questions will guide you. Think of it like the stock market. Economic factors and happening across the globe can have a huge impact on the interest rates. Depending on the type of loan you take out, your interest rate may or may not change as the federal rate changes. You can finance a car at many different places — a bank, credit union, or through the car dealership.
