Where is the best place to find auto loans? Auto loans are one of the most universally accepted parts of owning a car. Especially in today's market, not many people have the funds to buy a car outright. Most new cars are a minimum of $20,000, and most cost much more. Even if you're buying something used, you'll be looking at putting down some serious cash if you want something reliable.
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Carvana is a well-known site where you can buy cars from the comfort of your home and have them delivered directly to you. On top of helping you find your new dream car, Carvana offers extra car-related services like car insurance and, of course, auto loans. If you're looking to finance your next vehicle, Carvana offers assistance for all credit types. According to the site's data, it offers a 99% approval rate with low down payments on vehicles.
Loans are only for Carvana's vehicles
Carvana's auto loans are available for customers across the United States. However, unlike some other sites in our review, the services do not extend to outlying countries like Canada. Further, Carvana doesn't offer a network of dealerships like other auto loan sites. Instead, Carvana's loans are only available for vehicles within its own inventory. While this does include cars from a variety of dealerships and individual sellers, you won't be able to pick a dealership first.
Get your pre-qualification offer in 2 minutes
Carvana's pre-qualification questionnaire for auto loans only takes about 2 minutes. You'll need to add some personal information like your name, age, and home address. Carvana will also ask about your employment status, and then you'll be directed to make an account. You'll have a quick credit check through Experian, and then move on with your pre-qualification. The process is very quick.
Calculator offered $30,000+
Carvana offers an in-house calculator for its auto loans to give you an idea of what you might qualify for before going through the process of a credit check. You'll need to put in your vehicle price, how much you plan to put down, your current credit score, and the loan term you'd prefer. For our test customer, we put down a car value of $35,000, a down payment plan of $5,000, and a trade-in value of $2,000. Our test customer has fair credit and is looking for a standard 72-month term. For our customer, Carvana estimated that "she" would qualify for a $30,450 loan.
Make your loan work for you
Carvana makes it easy to pay off your loan. Before you sign, you'll customize your down payment and monthly payments, so you can decide exactly how much you want to pay for your new car. Then, you can set up an autopay for your auto loan and easily manage payments from your Carvana portal. There's no question about who will be handling your loan, which offers some ease of mind.
Concerning reviews about recent quality
Carvana, despite its wide use and popularity online, is not rated by the Better Business Bureau. Further, Carvana is listed as having had government action against it for marketplace misconduct in January 2025. The company entered into a settlement with the state of Connecticut to pay $1 million in restitution. But, outside of that, customers who are actually using the platform give it an average of 4.3 stars out of 5 on third-party review sites like Trustpilot. Then again, recent reviews within a few days of our research are all 1-star reviews. Customers are frustrated with every part of the company, from the buying cars part (with issues where warranty wasn't honored, and inspections of cars weren't accurate) to complaints that used cars from Carvana are faulty and incur more mechanic costs for the customer than the car is worth. Some customers who went through Carvana for an auto loan said the process was good, but it took forever to actually get the car delivered, so they were paying on a loan with no car in the driveway.
Not worth the hassle or potential repairs
Carvana used to be a heavy-hitter for buying cars online. These days, though, customers are frustrated with lackluster car inspections and difficulties actually getting their new vehicles delivered. Considering that the loan process is more limited (only allowing you to buy a Carvana car) and that the concerning practices regarding those cars seem to be increasing, it might be a better bet to go with a more generalized auto loan site instead. On top of that, the recent government action is somewhat concerning. For these reasons, Carvana earns the lowest ranking on our list of auto loan providers.
Continued from above...
Auto loans are one of the most universally accepted parts of owning a car. Especially in today's market, not many people have the funds to buy a car outright. Most new cars are a minimum of $20,000, and most cost much more. Even if you're buying something used, you'll be looking at putting down some serious cash if you want something reliable.
That's where auto loans come in. Instead of handing over your hard-earned money when you take the car home, you sign up for an auto loan that helps you spread the payments out over time. Many customers will jump right in and take a loan through the dealership or their bank. But there are other, sometimes much less costly options to consider, too.
So what exactly is an auto loan? Basically, it's money that's lent to you by a third party to help you purchase your next car. You use the money you borrowed to buy the car off the lot, and then pay back the loan over time (usually over a number of years) in monthly payments. Your car is the collateral for the loan, so if you stop making payments, your lender can take the car back (since it's technically their money that owns it until you pay it off). Things like your credit score and your job security can be factors in securing the best loan with the lowest interest rate.
Most people generally go with the obvious choice: through the dealership (especially if they're offering 0% financing or other deals in the first year), or through their trusted banking institution. However, there are tons of lenders that will give you money for an auto loan. And since these guys aren't actually trying to sell you the car (usually), you won't have to worry about feeling pressured in the moment, and can take the time to pick out the best loan for your situation.
In today's day and age, you can easily apply for auto loans directly online. You don't even need to be at the dealership. It's faster than ever, and you can do it from the comfort of your home. Generally, you'll need your driver's license, information about your job and income. Because the loan process will likely include a credit check, have your Social Security Number ready when you apply for an auto loan online. During the process, make sure to watch the interest rates. Those are the most important parts as they'll determine how much more you'll pay over time. Make sure you shop around and compare offers to make sure you get the best deal for your finances and credit.
If you're ready to get that new set of wheels, we get the feeling. Nothing's better than that new car smell when you drive it off the lot. To make sure you get the best deal on your auto loan, here are some factors to consider that can help you pick the best lender:
Whether you're grabbing a new eco-car, a shiny Toyota, or one of those pretty red Mazdas that are so popular these days, your new car is only a few clicks away. To make sure you have the best chance of finding a lender that will get you back on the road with your new car, Top Consumer Reviews has researched and ranked the best auto loan providers available today. Enjoy your new set of wheels!
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What You Should Know Before Getting An Auto Loan
Buying a new vehicle can either be an exciting experience, or one that stresses you to the max. For some people, it can even be a combination of the two. Sometimes people get caught up in the excitement of buying another vehicle, and find themselves being talked into more than they can reasonably afford. And once the deal is done, it's hard to undo it.
Rushing into buying a new or used vehicle is never a good idea. Unlike other investments, such as real estate, vehicles are a very poor investment. They begin to depreciate in value the minute they are driven off the dealer's lot, and continue to lose value for every year of ownership. However, for most people, vehicles are a necessity in order to get to work and other places they need to go. If you are lucky enough to live in an area with stellar public transportation, a vehicle is something you likely can do without. But for anyone living outside the reach of decent public modes of transport, a vehicle is a necessary evil.
Before buying any vehicle, whether new or used, shoppers should consider a few things.
First and foremost is to determine affordability. How much vehicle can you reasonably afford to own without going broke in the process? As a general rule, buyers should not spend more than 20 percent of their monthly income after taxes on a vehicle. If you are spending more than that, you risk overextending yourself financially and running the risk of ruining your credit report.
To estimate how much of a monthly payment you can afford, be sure to look at more than the purchase price of the vehicle. You must also factor in the interest rate, maintenance fees and insurance for the vehicle. All of these things should be considered under the 20-percent umbrella rule.
Consumers also should do some hefty research on the best way to secure financing if they are unable to cover the full cost of the vehicle's purchase price in cash. One of the best places to look for an auto loan is through online auto loan companies. Some of these businesses have access to a large number of loan companies and can automatically compare their auto loan rates, delivering only the best ones to you.
Some websites also provide a valuable tool when researching loans and interest rates. Consumers are able to use prediction software to plug in their local zip code and generate a list of the going interest rates in their area. Some online calculators also will take all of the factors involved in owning a vehicle - purchase price, insurance, maintenance and financing - and generate a monthly cost for you. It's always good to make use of these kinds of resources to be certain you're not overextending yourself financially.
Another place to look for an auto loan is with your own financial institution. Having a solid financial history with a bank can help to secure a good deal. With longstanding customers, a bank may be able to negotiate a fair interest rate for you, and certainly better than what you could find through the car dealer.
Securing a loan through the auto dealer is usually not the best idea. It usually is the most expensive option when it comes to financing. While auto dealers may have a variety of financial institutions to tap in order to get a variety of interest rates and offers, they also are permitted to add up to a 3-percent fee on to the total in order to compensate themselves for securing the loan. So as a general rule, auto dealers should be the last place you look for a loan.
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