As one of the world’s largest banks, Bank of America is widely available and offers competitive rates. Though you don’t need to be a member of Bank of America to use its auto loan services, members may qualify for special perks. For example, if you qualify for Bank of America’s Preferred Rewards program
- APR: Starting at 5.39% (new car loans), 5.59% (used car loans), and 8.29% (private-party loans)*
- Loan amounts: $7,500 ($8,000 in Minnesota) to $100,000
- Loan terms: 48 to 72 months
- Minimum annual income: Not specified
- Availability: 50 states
- Prepayment penalty: No
Based on your qualifying combined balances in your Bank of America deposit and/or Merrill® investment accounts — you can be eligible for up to 0.50% off your APR.
But Bank of America’s loan policies can lack variety. For example, it offers one of the least flexible loan terms on this list, with the shortest loan term set at 48 months. In addition, the minimum financing amount is $7,500, which rules out Bank of America as a loan financier for more inexpensive used vehicles.
*Rates may vary depending on your location.
LightStream Best For Private Party Loans
- APR: Starting at 6.49%* with AutoPay and excellent credit (private-party car loans). Rate as of Dec. 20, 2022.
- Loan amounts: $5,000 to $100,000
- Loan terms: 24 to 84 months (depending on the loan type)
- Minimum annual income: Not specified
- Availability: Online
- Prepayment penalty: No
LightStream is an online lender under Truist Financial that offers low rates for private-party car loans. Though its loan amounts and terms are of average flexibility, it offers a variety of auto loan options. It places no restrictions on model year, make or mileage, making it the ideal lender if you plan to purchase an older car. LightStream also offers a simplified ending process that includes same day funding, under certain conditions.
In order to access Light Stream’s best terms, you’ll need to sign up for autopay. Light Streams’ loans are also unsecured — so your car won’t be repossessed if you can’t make your payments, though your credit score will suffer.
Carvana for Poors with 0 Credit
- APR: Starting at 6.85% (used cars only)
- Loan amounts: Not specified
- Loan terms: 36 to 72 months
- Availability: Not available in Alaska or Hawaii
- Prepayment penalty: No
Though Carvana is mostly known for its online used car shopping experience, it also offers auto loans on vehicles you buy through the site. Carvana’s only requirements are that you’re over 18, make $10,000 annually and have no active bankruptcies, so it’s a great choice for those with poor credit. Furthermore, Carvana’s wholly online model combines the buying and financing experience, making the process of purchasing a used car relatively painless.
However, though Carvana makes it possible for customers with bad credit to obtain a loan, the best auto loan rates will always be reserved for those with excellent credit – and it’s important to note that it offers, by far, the highest starting APR on our list.
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