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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Lending Tree is a loan site that specializes in auto loans. Promising rates as low as 5.03% APR before you even need to fill out a form, Lending Tree stands out for its transparency. Lending Tree offers different auto loans for different use cases: purchasing a new car, refinancing your existing car, or buying out your lease on a car you love, but don't own yet. The process here uses three quick steps, and is completed 100% online, so you just need to compare lenders and pick the best financial situation for your dream car.
Service for customers in all 50 states
Lending Tree's services are available to customers in all 50 US states. The company is actually an online marketplace, so you will be connected to direct lenders who operate in your area. In general, you fill out one form, and your request for an auto loan will be sent out to lenders in your area who are able and willing to help you out.
A few minutes to prequalification
Lending Tree's questionnaire just takes a few minutes. First, it will start off by asking you how long you want to have your car loan for (anywhere from just 1 year up to 7 years). You'll also be asked how much you plan to put down on your new vehicle, how much your new car is worth, and when you plan to buy (you can get your auto loan through Lending Tree as quickly as 48 hours). You'll provide details about the make and model of your new car, and some quick questions about whether or not you've ever filed for bankruptcy, your current estimated credit score, and some basic details about your employment. Finally, you'll be asked about your residence and housing costs, and you'll need your Social Security Number to be able to see your pre-qualification amounts.
Test customer approved for $30,000
Lending Tree does offer a loan calculator on the website, where you can get a ballpark idea of your loan amount prior to filling out the complete forms. To get accurate numbers at all auto loan sites with calculators, we created a test customer trying to buy a new car with a value of $35,000, a down payment 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. Our test customer was able to get a $30,000 loan with a $506.91 monthly payment.
Pay directly to your lender
Lending Tree does not take your payment directly when it comes to paying off your loan. Instead, you'll pay the specific lender that Lending Tree connected you with. This means you'll set up a payment portal on your auto loan lender's website and complete things like auto payments, online bill pay, or set up a plan to mail a check each month with your direct lender. This is a requirement, so make sure that you keep on top of your lender's information and pay them directly to keep from accidentally defaulting on your loan.
Some recent reviews show mixed feelings
Lending Tree has an outstanding rating at the Better Business Bureau. It currently holds an "A+" rating and accreditation there. It's also highly popular on other verified third-party review sites, like Trustpilot. Lending Tree has a 4.5-star average rating out of 5 from Trustpilot, with tons of reviews within days of the time of our research (showing that customers are actively using Lending Tree). However, there is one negative to keep in mind: some customers claimed that using LendingTree did actually impact their credit scores. Be aware that Lending Tree's actual credit check is a "soft pull," which doesn't impact your credit, but the individual lenders may do a full credit inquiry once you're finished with the initial request process. So, this could be where the credit issues are coming from. In general, most customers found Lending Tree easy to use and had no problems. But with quite a few one-star reviews near the time of our research, we are slightly more cautious about Lending Tree than some of its competitors.
Helpful tools and quick sign-up
Lending Tree is overall a trustworthy platform for finding auto loans, but with some increasing 1-star reviews, it doesn't quite make it to the top picks. It still stands out for a quick questionnaire, a helpful calculator tool on the website, and service across the US, though, so you may still want to take a look. Plus, it still holds a high rating average on Trustpilot and the BBB. For these reasons, Lending Tree gets a highly competitive score in our review.
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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