The Best Auto Loans of 2023 – Awards

Last updated Jul. 29, 2024 by Okechukwu Nkemdirim

When it comes to financing a new vehicle, finding the right auto loan is crucial. With numerous financial institutions and online lenders vying for your attention, securing the best auto loan can save you a significant amount of money over the life of the loan. In 2023, the Best Auto Loans awards showcase the top lenders that offer consumers the best terms, customer service, and overall borrowing experience. Here’s a detailed guide on the best auto loans of 2023, including key features, pros and cons, and a summary of each award-winning lender.

Award Categories:

1. Best Overall: LightStream
2. Best for Refinancing: AutoPay
3. Best for Bad Credit: Carvana
4. Best Online Experience: Capital One
5. Best for Low Rates: Bank of America
6. Best for New Cars: Chase Auto
7. Best for Used Cars: PNC Bank

1. Best Overall: LightStream

Key Features:

• Competitive APR starting from 2.49% for excellent credit
• Loan amounts ranging from $5,000 to $100,000
• No fees, including origination fees
• Same-day funding available

Pros:

• Low APR for qualified borrowers
• Zero fees and flexible terms
• Fast, same-day funding

Cons:

• Requires strong credit for best rates
• No pre-approval process

LightStream, a division of SunTrust Bank (now Truist), wins our best overall spot for 2023 due to its outstanding mix of low rates, high loan amounts, and excellent customer service. Consumers with excellent credit can take advantage of competitive APRs and no fees, making this lender a standout choice.

2. Best for Refinancing: AutoPay

Key Features:

• APRs as low as 1.99%
• Flexible terms ranging from 24 to 84 months
• Dedicated support team to help with refinancing

Pros:

• Extremely low refinancing rates
• Wide range of loan terms
• Competitive rate matching service

Cons:

• Online application only
• Rates may vary based on partner lenders

AutoPay stands out in the refinancing category by offering some of the lowest APRs in the industry. With their dedication to helping borrowers secure the best rates and terms for refinancing, AutoPay has earned a stellar reputation among borrowers looking to reduce their monthly payments or overall loan cost.

3. Best for Bad Credit: Carvana

Key Features:

• No minimum credit score required
• Fast application and approval process
• Purchase your car and finance it in one place

Pros:

• Suitable for individuals with poor or no credit
• Quick and easy process
• No prepayment penalties

Cons:

• Higher APRs for bad credit
• Offers only financing for Carvana car purchases

For those with a below-average credit score, Carvana offers a seamless car-buying and financing process. While the interest rates might be higher for borrowers with bad credit, Carvana’s inclusive approach and quick approval process make it a viable option for many consumers.

4. Best Online Experience: Capital One

Key Features:

• Easy online pre-qualification with no impact on credit score
• Dealer network with thousands of participating dealerships
• Personalized loan offers within minutes

Pros:

• User-friendly online platform
• No credit score impact for pre-qualification
• Extensive dealership network

Cons:

• Only available through participating dealers
• Loan terms can vary by dealer

Capital One’s Auto Navigator program offers one of the best online experiences for car shoppers. Borrowers can prequalify without impacting their credit score and get personalized offers quickly, enabling them to shop with confidence at partnered dealerships.

5. Best for Low Rates: Bank of America

Key Features:

• APRs as low as 2.29%
• Discounts for existing customers and Preferred Rewards members
• Flexible loan amounts and terms

Pros:

• Very low-interest rates for qualified applicants
• Special discounts reduce overall cost
• Nationwide availability

Cons:

• Requires good to excellent credit for best rates
• Limited to Bank of America customers for additional discounts

Bank of America shines in the category of low interest rates, offering some of the most competitive APRs available. With added benefits for existing customers and Preferred Rewards members, Bank of America ensures that qualified borrowers can get the most competitive rates possible.

6. Best for New Cars: Chase Auto

Key Features:

• Low APRs on new car loans starting from 2.49%
• Pre-approval option with instant decisions
• Access to a vast network of dealerships

Pros:

• Competitive APRs for new cars
• Easy pre-approval process
• Strong dealer relationships

Cons:

• Not suitable for refinancing
• Limited to new car purchases

Chase Auto particularly shines when it comes to financing new cars. Buyers benefit from competitive rates, widespread dealership access, and a simple pre-approval process that makes securing financing straightforward.

7. Best for Used Cars: PNC Bank

Key Features:

• APRs starting at 3.19% for used cars
• Wide range of loan amounts
• No prepayment penalties

Pros:

• Competitive rates for used car loans
• No hidden fees or penalties
• National network availability

Cons:

• Rates may be higher compared to new car loans
• Physical branches required for some services

PNC Bank offers excellent conditions for those looking to purchase used vehicles. With competitive rates and easy application processes, PNC ensures that borrowers find a good deal on their used car loans.

FAQs

Q: What is an auto loan?
A: An auto loan is a type of secured loan used to purchase a vehicle, using the car as collateral.

Q: Can I get an auto loan with bad credit?
A: Yes, some lenders specialize in offering auto loans to individuals with bad credit, though interest rates may be higher.

Q: How can I get the lowest interest rate on an auto loan?
A: To secure the lowest rates, maintain a strong credit score, compare offers from multiple lenders, and consider making a larger down payment.

Q: Is it better to get financing through a dealer or a bank?
A: It depends on the terms offered. While dealers might offer convenient options, banks often provide more competitive rates.

Q: What documents are required for an auto loan application?
A: Typically, you’ll need identification, proof of income, employment information, and details about the vehicle being purchased.

Q: Can I refinance my current auto loan?
A: Yes, refinancing your auto loan is possible and can lower your interest rate, reduce your monthly payment, or change the loan term.

Q: What is the difference between pre-qualification and pre-approval for an auto loan?
A: Pre-qualification gives an estimate of what you might qualify for based on a soft credit inquiry, while pre-approval involves a more thorough review of your finances and a hard credit check.

In conclusion, the best auto loans of 2023 have been recognized for their exceptional offerings, customer service, and flexible terms. Whether you’re looking for low rates, an easy online experience, or options for bad credit, these award-winning lenders provide solutions to meet your needs.