The best car loans in March 2022

A car loan might be the best option for you if you are looking to buy a new or used vehicle.

Check out some of these options.

Black money group linked to US Representative Suozzi behind latest attack ads on Governor Hochul

What am I getting into with a car loan?

Auto loans are usually unsecured. This means that the car you buy serves as collateral. It is subject to repossession if you do not make the necessary payments. Learn more here.

Auto loan rates are usually quite low, but that’s still important, so shop around for the best rate. You can apply for a car loan from a dealership, bank, credit union, or online lender.

Working Families Party endorses Josh Riley for NY-22

What are the car loan options?

  • PenFed Credit Union – best for new and used car loans
    • APR ranges from 0.99% to 2.39% depending on the car and service purchased
    • Loans can be taken out from $500 to $100,000
    • Loan terms from 36 to 84 months
    • No minimum credit score has been specified
    • The minimum annual income is also unspecified
    • Available in all 50 states
    • No prepayment penalty
    • You must be a member of the Pentagon Federal Credit Union to receive preferential financing rates
  • Consumers Credit Union – Finalist for Best New and Used Auto Loans
    • APR starts at 2.24% but varies by membership and car
    • Loans can be taken out between $250 and $100,000
    • Loan terms from 0 to 84 months
    • No minimum credit score has been specified
    • The minimum annual income is also unspecified
    • Branches in Illinois, shared branches nationwide
    • No prepayment penalty
    • This Illinois-based credit union recently opened membership nationwide. They offer great rates and flexibility.
  • LightStream – best for private car loans
    • APR starts at 2.49% -3.49%
    • Loans can be taken out between $5,000 and $100,000
    • Loan terms from 36 to 84 months
    • No minimum credit score has been specified
    • The minimum annual income is also unspecified
    • Available online
    • No prepayment penalty
    • LightStream is an online lender under SunTrust Bank. They offer low rates for private party car loans. LightStream guarantees a simplified loan process.
  • Bank of America – best big bank option
    • APR from 2.49% – 5.69%
    • Loans can be taken out between $7,500 and $100,000
    • Loan terms of 48 to 72 months
    • No minimum credit score has been specified
    • The minimum annual income is also unspecified
    • Available in all 50 states
    • No prepayment penalty
    • Bank of America offers attractive rates and availability, but lacks flexibility.
  • US Bank – best for longer loan terms
    • APR from 2.59% – 5.49%
    • Loans can be taken out between $5,000 and $100,000
    • Loan terms from 12 to 72 months
    • No minimum credit score has been specified
    • The minimum annual income is also unspecified
    • Branches available in 26 states
    • Prepayment penalty: 1% of the original loan amount, with a minimum of $50 and a maximum of $100
    • US Bank offers financing up to 120% of the value of your car with no down payment.
  • Carvana – best for people with poor or no credit
    • APR from 3.9% for used cars
    • No loan amount specified
    • Loan terms of 36 to 72 months
    • No minimum credit score has been specified
    • Minimum annual income: $4,000
    • Not available in Alaska or Hawaii
    • No prepayment penalty
    • Carvana allows you to buy and finance directly online to facilitate the purchase of a used car.

Hochul updates New Yorkers on state’s fight against COVID-19

What else should I know?

Auto loans usually have inane rates and loan terms. Depending on your lender, they can often be negotiated. Your loan rate generally depends on your credit score.

The higher your credit score, the lower your APR. Having a higher credit rating can also give you access to larger loan amounts or better repayment terms.

Typically, you’ll pay less extra interest with a shorter loan term, but your payments will be higher. With a longer loan term, your monthly payments will be lower, but you will pay more interest over time.

When researching lenders, ask yourself if they offer a pre-approval process. Pre-approval will allow you to see the rates you qualify for without a “thorough investigation”.

Schuyler County teens learn new skills to prevent youth drug use