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.
Good
SoFi is a financial technology company that stands out as a digital bank. You can do everything you could do with a normal bank, including checking and savings accounts, credit cards, investing, and things like auto loans or mortgages. It is a financial one-stop shop. For those of you already banking with SoFi, this may be one of the best options for securing an auto loan. With promises of low rates and no fees required, you can grab a loan quickly from SoFi with no risk to your credit score. Plus, SoFi is a direct lender, so there's no back and forth with offers from other institutions.
Loans in all 50 states and US territories
SoFi offers loans in general across the entire US. You can get a personal loan (which can be used as an auto loan) in all 50 states and the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, and other US territories. This is one of the widest service areas for an auto loan provider in our review, making it simple for most people to get a loan quickly and fully online.
Detailed questionnaire for your loan quote
SoFi's auto loan process is actually labeled as a personal loan. It starts with a quick sign-up, and then you can tell SoFi how much money you'd like to borrow. On the second page, you can list what the loan will actually be used for ("other" or "major purchase" are the closest options for an auto loan, for now). You'll be asked for your personal information, including your birthdate, your citizenship status, your home address, whether you rent or own, and how much you make and spend in a month. You will also be asked if you want to add a co-borrower to your auto loan. Before you move forward, SoFi will ask you to click that you understand it will do a "soft credit check" and that you will not use your funds for education or to invest in real estate or business. Be prepared to enter your SSN at the end to get your offer.
Loan amounts from $1,000 to $100,000
SoFi's personal loans (the way you'd secure an auto loan with this borrower) generally range from $1,000 to $100,000, depending on your situation. If you apply with a co-borrower, you can get a much better deal. However, since SoFi is offering a personal loan rather than a direct auto loan, you might find higher APRs with SoFi than with other auto-focused lenders.
Pay off your loan directly with SoFi
SoFi's loans are all offered directly by SoFi as the lender, which means you can make all of your payments directly through the institution where you secured your auto loan. There's no back and forth with external lending partners, and you can easily make payments through the SoFi website or the mobile app. Most autopays through SoFi are monthly, so you can maintain regular payments with no effort.
Competitive loans and easy browsing
SoFi currently holds an "A+" rating as a financial institution, and it has a competitive 4.2-star average rating out of 5 from Trustpilot, too. Most customers who used SoFi had a solid experience with quick sign-up, fast access to funds within 24 hours when borrowing loans, and a very user-friendly app and website. Reviews that mention loans specifically (though not auto loans) were posted within a few hours of the time of our research, meaning that SoFi is regularly serving customers who need to borrow. Most of the reviews stated that the loans are quick and easy, and decisions are made faster than at other financial institutions.
Good for general finances
SoFi is a great choice for securing an auto loan, especially if you're already banking or using other financial services through SoFi. The only downside is that SoFi doesn't offer specific auto loans, which can lead to slightly higher APRs than other financial institutions that focus on auto loans over personal loans. While this doesn't keep SoFi from being competitive in other areas, it doesn't quite rank as high for auto loans specifically as it could. For these reasons, SoFi earns an above-average rating overall.
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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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