Many banks and third-party lenders offer car financing, but not all have the same rates and terms. California’s top auto loan banks include car financing companies with low rates, flexible payment schemes, high credit scores, and flexible credit requirements.
Auto Loan Qualification Criteria
All lenders look at your ability to repay the loan, and the essential tool to determine that is the credit score. As such, you ought to improve your credit score to qualify for car financing.
There is documentation necessary, and you must organize and produce them to increase your chances of approval. Most financiers also require a downpayment, and it is paramount to research when looking for financing.
Bank of America: Best for Buyouts
Bank of America hosts a variety of auto financing options at competitive rates, including discounts of up to 0.5% for existing customers. For example, you can get financing for a used car at 2.89% and new vehicles at 2.59%. In addition, if you are leasing your vehicle, BOA can buy out at competitive rates.
BOA offers auto loans between $7,500 and $150,000 for periods between 12 to 75 months. I(t is a well-known financier with a transparent record. However, BOA only finances vehicles less than ten years old with mileage, not exceeding125,000 miles. Furthermore, BOA does not finance vehicles of less than $6,000.
PenFed Credit Union: best overall
PenFed offers the lowest rates with flexible loan amounts and various options. PenFed credit union is membership-based with flexible entry requirements. Its APR is 0.99% for new vehicles and 1.99% for used cars.
The loan has a 36 to 84 months repayment period, and loan amounts range between $500 and $100,000. PenFed finances up to 110% of the value of the car for both old and new vehicles. You can get a refinancing loan at 1.79% and get discounts if you use their car buying service.
Consumers Credit Union (CCU): Best Credit Union for loans
Entry requirements for membership are relatively straightforward, and it offers loans at an APR of 2.24%. CCU has no minimum and maximum loan amounts up to 84 months. Their approval criteria include a good credit score and compliance with vehicle requirements.
Discounts of up to 0.5% are available if you use their autopay
LightStream: Best for Good Credit Scores and online lending
LightStream provides online car financing to clients with excellent credit scores. You can apply for loans within the range of $5,000 to 100,000. You can get auto loans for terms of between 24 to 84 months. The APR for a new car financing is 2.49% and used car financing at 9.24%.
Its lease buyout ranges between 3.49% and 10.24%. There are no restrictions on the mileage and type of vehicle, but the lender restricts its loans to those with excellent credit scores.
Capital One: Best for Bad Credit Scores
Capital one caters to borrowers with credit scores as low as 500. Capital one offers loans beginning from $7,500 for used vehicles repayable between 24 months to a maximum of 84 months. New cars have an APR of 2.99%.
Chase Auto: Best for Used Cars
With minimum loans of $4,000 and a maximum repayment period of 72 months, Chase Auto presents easy financing for used cars and provides car buying and management options. You can apply for car loans between $4000 and $ 600,000 with no downpayment requirements.
As an existing Chase client, you qualify for discounts of 0.25%. Eligibility for their loans is through its Auto Preferred Program. You must purchase a car from their network if you want to finance.
If you plan to purchase your dream car, it is natural to secure the best deal possible. However, with so many car financing options out there, it can be tricky to figure out which is best for you.
Most car buyers would agree that the best car financing options in California provide a loan with low-interest rates and manageable monthly payments.
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