Get a car loan directly from the lender or compare loans from multiple lenders to find the best rate for you.
Shopping for the lowest interest rate on your car loan before you buy your next car puts you in a stronger negotiating position and saves you money for the life of the loan. If you already have a loan, you may be able to lower your monthly payments and save money by refinancing your car loan.
You can compare multiple offers below for car purchase loans, car loan refinance, and even online car dealers with financing. Bookmark the car loan calculator to estimate your monthly payment.
You need to know before applying for a car loan
Bad Credit Car Loans
Car lenders look at your credit score and history, but there are many other factors as well, such as how long you’ve been in your current job, whether you’ve had previous car loans and whether you have enough income to support your monthly payments.
The interest rate you will get depends on your credit score, income, loan term you choose and the vehicle. If you have a loan and you make steady payments on time and your credit score improves, you may be able to refinance your car loan to get a better rate and lower your monthly payments.
Some lenders offer loans of up to 84 months. However, it is better to pay off the car loan quickly because the value of the cars goes down quickly. Having a loan in excess of the value of the car is called an “underwater” or “inverted” financial position. Also, the best interest rates are available for shorter loan periods.
“Soft” credit draw vs. “hard” draw
Some lenders will “easy pull” your credit to pre-qualify you for a loan. This does not harm your credit score, but it also does not guarantee that you will be approved for a loan or that you will receive the exact rate at which you were quoted. But again, your final price may differ slightly from the previously approved rates. A strong drawdown is required in all cases before the loan is completed.
Applying to several lenders helps you find the most competitive interest rates. However, it can result in you being contacted by many lenders, or even merchants when applying for a purchase loan, especially if you use a service that compares offers for you (such as myAutoloan).
All orders are placed within a short period of shopping at prices. Credit reporting agencies count many difficult inquiries made during a given period—usually 14, 30, or 45 days—as just one. However, it’s also smart to check your credit score afterwards to be sure.
If you’re worried about being inundated with calls and emails, create a new email account and get a free Google Voice phone number that you can check separately.
Some lenders only work with a network of agents. Others will not lend money to buy cars from private sellers. Lenders may also exclude some types of cars and certain types and types of cars, such as electric cars.
Once the loan is complete, the lender will offer you a loan with a maximum amount at a specified interest rate. For purchase loans, lenders provide money in several ways: a no-obligation check, a direct deposit into your bank account or a certificate to use with a car dealer. For auto refinance loans, the lender usually pays back to the old lender and you start making payments to the new lender.
Build refinancing into your plans. Car loan refinancing is an option for most buyers. You can refinance immediately, for example, if you have significant credit but have taken out manufacturer financing to qualify for a special discount or pricing. For first-time buyers or those recovering from past credit problems, some on-time payments on your reports will help your chances of finding a lower price.