Auto Lender Reviews

Interest is the cost of borrowing that lenders charge when you take out a loan. It’s usually presented as a loan’s APR (annual percentage rate) which includes both the interest and fees. The higher your interest, the more you’ll spend overall on your car loan.
 
The better your credit score, the lower your auto loan rate. For example, in Q1 2024, borrowers with subprime credit (in the range of 501-600) had an average 12.85% APR, while borrowers with super prime credit (in the range of 781-850) received an average 5.38% APR.

Like interest rates, fees are also typically included in your loan APR. Common fees might include dealer fees like documentation fees, destination fees or GAP insurance. Some of these fees are optional.
 
If you pay your car loan off early, some lenders may charge you a prepayment penalty.

Lenders typically place restrictions on the vehicle you’re purchasing. For instance, some lenders require that the vehicle you finance is less than 10 years old. Lenders may also have restrictions around mileage and where you purchase the car from (private sales versus buying from a dealership).
 
Be sure to find out these restrictions before getting your heart set on a particular vehicle.

When you take out an auto loan, your lender will give you the option to choose from different repayment term options. This is the amount of time you have to pay off your car loan.
 
The longer your repayment term is, the lower your monthly car payments may be. However, you may end up paying more in interest overall. On the other hand, a short repayment term may come with higher monthly payments but lower rates.

Auto loan lenders have limits on how little and how much you can borrow. Before you pick a vehicle, make sure it fits within your lender’s borrowing limits.

Do your research ahead of time and look into your lender’s history and customer reviews. You can search the Consumer Protection Financial Bureau (CFPB) complaint database to see what customers are saying.
 
You can also check for any recent regulatory action against the lender by the Federal Trade Commission (FTC) or CFPB.

This is the amount of time it will take for a lender to approve your application and fund your loan. If you’re in a hurry to get a fast car loan, you’ll want to research your preferred lender’s approval and funding timeline.

Some lenders offer unique perks such as hardship assistance — like Chase — or no payments for the first 60 days of your loan, like Digital Federal Credit Union. As you research and compare lenders, be sure to take note of any unique offerings that stand out to you.