An auto loan is typically considered a secure investment. However, the only downside to it is that the car you're buying is kept as collateral. Now, there's also an upside to this because, with collateral, you may have a lower interest rate and better loan terms than what you may get in an unsecured loan.
Typically, the duration to pay the loan off could be anywhere between 24 and 84 months. Moreover, car refinancing is always an option if you're unhappy with your current loan. Here are some of the most sought-after lenders of 2021.
Bank of America
As one of the biggest banks to offer auto loans, the Bank of America is known to give you convenient and flexible deals. Moreover, if you're an eligible customer of the bank, you may also be in for some additional discounts. However, your car must not be older than ten years, and it must also not have over 125,000 miles in its record.
If all the requirements are met, the bank can finance $7500 as a minimum amount. The APRs usually start from 2.99% for used cars and 2.89% for new cars. Hence, you can also consider it for an auto refinance if your current interest rate is higher than the stated numbers.
The best thing about availing services from this lender is that they have deals for absolutely any circumstances. From used and new cars to classic financing and lease buyouts, there's something for everybody. While it requires an excellent credit score, the lender may offer you a 4.94% APR for $36,000 as an average car loan and 72 months of the loan duration.
Moreover, the company is also known to fund your loan the same day as your application. However, you may have to deal with less competitive interest rates compared to the rest of the market.
Last but not least, if you're in for a completely online experience, look no further than Carvana. Not only does it allow you to buy a car online, but it also gives you car loans with competitive terms and rates. Moreover, if you think your credit score is not up to par, Carvana will still cater to you, thanks to its low requirements. The only requirements it has, are that you should earn $4,000 yearly and must be 18 years old with no bankruptcy records.
Whether it's Carvana, LightStream, or Bank of America, you will come across various deals suited to your needs. Moreover, they're also great options to refinance your car if you've already taken an auto loan from a lender you're not satisfied with.