Auto Loans in the United States are a thriving industry with over two trillion in outstanding loan debts as of 2024. You and I know that the prices of cars are becoming very expensive as the average loan balance was nearly $30,000 last year. We also know that getting an auto loan on a new or used car is a lot easier now than ever before. However, this can be a confusing process to navigate, no matter how many times you have done it before.
Secure Bank Car loan process goes beyond selecting the right lender and the navigation of the financial process. You just have to find a car and negotiate the price. Even with all that, you have to keep an eye on your credit score, and then work to get the best rate of your loan.
THE AUTO LOAN PROCESS
A car loan like any other loan always starts with an application to a bank or a lender. Just like getting a mortgage, we strongly suggest you check your credit score and get the preapproval you need before ever heading to a dealership. However, knowing where you stand in terms of your credit score/credit history ahead of time. This will put you in a stronger position, to negotiate when you walk into the auto shop to see the auto dealer about the type of car you want to buy. This process allows the dealer to explain how much the cars are selling, and how many cars you can afford before anything.
The moment you have applied for a loan on a car or through the preapproval process, you will be given an approval or a denial with a reason. If the loan is approved, the dealer will propose the interest rate, loan term, monthly payment, and other requirements like a down payment. You have to decide to borrow through a dealership and have a car already picked out, the process is nearly complete as you will sign the paperwork, make a down payment, and drive off your car. If you have completed the preapproval process, you will still need to select a car. By selecting a car, you need to negotiate the price with the dealer. But when you have a loan approved already it will save you some hassles in the finance back office.
Learn More: HOW TO GET LOANS FOR CAR ACCIDENT
WHERE SHOULD I GET MY AUTO LOAN?
Secure Bank Car Loan For Online Lenders
You and I know that applying for and obtaining a loan online has never been easier. Organizations such as MyAutoLoan, LightStream, and a lot of others do offer loans online that can be approved and funded within 24hrs. Thereby making it a lot easier for you to buy a car without stepping your foot into the bank.
Banks For Secure Bank Loan
Banks are very popular when it comes to obtaining various kinds of loans including auto loans. They offer auto financing and several lending products to accommodate various kinds of customers.
Several community banks run loan special or offer a promotional rate. That is, to attracts customers which make them attractive
Credit unions are nonprofit and they are more customer /member-centric than the banks in many ways. When you choose a credit union, you are sure to obtain better customer service. They also offer available financial education programs, and sometimes lower rates.
Many dealers especially franchised new car dealers, offer in-house financing. Although they may be seen as the ones offering the financing but is coming from the bank that provides the financing. A great example is Chrysler Financing, which is run by Standard Bank.
AUTO LOANS FROM ONLINE LENDERS
When we talk about auto loans, Lightstream is typically an example of an online division of Suntrust Bank. They offers quick loan decisions and funding, as quickly as 24 hours after approval. The site can deliver great rates and wonderful service. But their lending offering is best for those with good credit. The bank issues funds and advises customers to pay for their new vehicle as if it were a cash transaction which makes it much easier to shop and select a vehicle.
PROS AND CONS
- Quick decision and loan funding
- Enables cash purchasing for a car.
- The all-online operation makes it easier to apply and get approved
- Excellent choice if you had a credit
- The best rates are reserved for top-tier customers
- Minimum credit score eliminates all but the best borrowers
- No-pre-approval –application requires a hard credit check
MyAutoLoans is known as a marketplace that submits a borrower application to several lenders at once to find the best rate or most likely approval. The site offers services for loans, refinancing, lease buyouts, and more and can deliver approval in as little as 30 seconds. Borrowers are presented with multiple loan offers from one application, which can make it quick and easy to shop around.
That said, the company loans are restricted to an $8000 minimum, so you won’t be able to finance a cheap car with MyAutoLoans. Additionally, customers in Alaska and Hawaii are out of luck as the company does not offer lending services in those two states.
PROS AND CONS
- Fast approvals
- Ability to compare offers
- Discounts available
- Offers loans for people with a variety of credit backgrounds.
- May be overwhelming to receive so much information at once.
- Not open to borrowers in all states
- Customer support is not as strong as others.
AUTO LOANS FROM BANKS
Capital One for secure bank car loan has grown into one of the most prominent and popular auto loan providers in the country. Its Auto Navigator tool offers an easy–to–use append interface that makes it simple to understand the process of taking and receiving funds and a new vehicle. Capital One works directly with a network of dealers, so you are limited on where you can shop. The good news is that the bank’s app shows cars that fit your pre-approval and payment requirements, so you will be able to find the right model for you.
PROS AND CONS
- Excellent append interface
- Easy to understand payments and loan parameters
- A huge network of approved dealership
- You can only shop with ban dealers
- Pre-approval only applies to select dealers, making it difficult to negotiate.
- Not an option for dealers in all states.
SANTANDER For Secure Bank Car Loan
Santander Auto Loans is a division of Santander Bank in Spain. Though it does not offer re-financing, buyouts, or loans to cover auto purchases from private parties, Santander does the dirty work for Chrysler as their in-house financing arm. If you are buying a new Chrysler, Dodge, Jeep, Ram, or other related vehicle there is a great chance that your loan will be offered by Santander. Despite its age, the bank doesn’t have the best track record with its customers, who have frequently complained of unresponsive or unhelpful service representatives.
PROS AND CONS
- Offers loans to borrowers with less-than-perfect credit
- Simple application
- Can be used with Vroom or through Chrysler
- Spotty customer review
- Some view lending services
- Interest rate higher than the competition.
BANK OF AMERICA
Bank of America was the country’s largest bank for a long time but has been surpassed by JPMorgan Chase & Co. That said B is large enough that it can offer extremely competitive rates that its rivals cannot, and its catalog of loan products is more extensive than many other banks. Borrowers are not required to pay a fee for paying off their loan early, and the bank may offer interest rate discounts if borrowers meet specific criteria. On the downside, B of A’s discount programs heavily favor customers with large account balances and the bank has a minimum loan amount that is higher than others.
PROS AND CONS
- Discounts available for some Bank of America customers
- Several loan options are available
- No ability to prequalify
- Discount only available to major B of A customers ($20,000 or more account balance
- Eligible dealerships are all franchise stores.
Other banks offer secure bank car loans and they are as follows,
U.S. Bank and Wells Fargo.