Find Car Loans Online and Compare Interest Rates

Compare and Save When Financing a Vehicle

Where you can find the best low interest car loans online.

You have several options other than financing a car with the dealership. One of the most accessible and convenient alternatives is obtaining a low-interest car loan online.

Several financial institutions allow you to compare shop auto loans right from your computer or mobile device. Below I will show you how to find free auto loan quotes online.

Why You Should Get a Pre-approved Car Loan First

A common misconception many car buyers have is that they believe they must finance a car through the dealership they buy the car. This is not true! You have many outside finance sources available to you.

Banks and credit unions provide individuals with auto loans, but if you want the lowest interest rates available, you should apply for an auto loan online.

Most online lenders have no fees and very little overhead; this provides you maximum savings.

Some of these free sites will even shop around for multiple lenders and present you with various possibilities.

These companies will supply you with a free, no-obligation auto loan quote. The quotes contain valuable information about financing your next new or used car. Once you have the best quote in hand, you can use it to save more money when dealing with a dealer’s finance department.

Acquiring a pre-approved car loan through an outside financing source is a huge step you can take in saving you hundreds, if not thousands, of dollars before buying your next new or used car. Having a pre-approved car loan in hand before visiting a car dealership will act as your “golden parachute.” When it comes time to negotiate interest rate (APR) and finance terms with a finance manager, you will have the upper hand.

If you don’t like the interest rate, terms, and conditions of what the finance manager offers you, you can fall back and use your pre-approved car loan to buy the car.

Savvy vehicle purchasers have begun utilizing the internet to research new car pricing and auto loan offers. Competition is the secret to receiving the best car loan interest rates.

Can you rely on a car dealer to find the best interest rate and payment?

FALSE – Car dealers are in business to make money. They get kickbacks for selling you at a higher interest rate, extended warranties, and additional financial products such as GAP or credit life and disability insurance. Read my tips on why you should get a pre-approved car loan online before contacting a car dealership.

Before applying for any loan, review your credit report and score from a reputable company such as MyFreeScoreNow first.

This will let you know what’s on your credit bureau and keep you from becoming a victim of any costly car dealer scams.

Benefits of Using an Online Auto Lender

There are several benefits to applying for a pre-approved car loan from an online lending institution.

Some of these benefits are:

  • Save a lot of time and can be completed securely from your computer, phone, or tablet.
  • Online lenders provide lower rates because of the online competition and lower operational and administrative expenses (overhead).
  • Interest rates usually are much lower than what a car dealer, bank, or credit union will offer.
  • You can lock in your rate for 30 to 60 days so you can take your time to find the right car for your and your family’s needs.
  • A pre-approved auto loan from an online lender will give you more leverage when negotiating a better interest rate with a car dealership.
  • You can compare shop rates and terms and pick which loan best fits your needs.
  • With new car financing, you will not have to worry about haggling over interest rates or becoming a victim of the spot delivery scam or any other finance scams.
  • There are no pre-payment penalties, application fees, added points, or hidden fees.
  • Loan approvals typically take anywhere from a few minutes to about an hour during regular business hours.

How to Increase Your Chance of Approval for a Car Loan

There are several tips to help increase your chances of being approved for an online car loan. These tips can be applied when applying for any credit or car loan.

Tips to help you get approved for a car loan:

  • A monthly income of at least $1,600 ($1,500 for some lenders).
  • Have two years of residence history and at least six months of record at the most recent address.
  • Have at least six months of employment history or one-year employment history within the same industry.
  • Pay down credit cards and other loan balances under half of the maximum limit. This will decrease your debt to income ratio and raise your credit score.
  • Close any open unused credit cards or open lines of credit. This will also raise your credit score quickly.
  • Establish good credit history before applying for a car loan.
  • Be able to put a minimum of 20-25% down towards purchasing a car. This shows skin-in-the-game to the lender and will minimize your chances of having negative equity in your vehicle.
  • Keep your budgeted car payment under 20% of your total gross monthly income. If you make $2,500 monthly, keep your payment under $500.

Online Auto Loan Sites I Recommend

You have no obligation to buy or commit to anything with the online auto loan companies I recommend. You can get pre-approved and have your car loan in place within minutes of submitting your application, and the interest rates are some of the lowest available.

These online finance companies make it convenient for you to take advantage of their services and get low APR auto loans while sitting at your computer in the comfort of your home. Take your time and compare each to determine which loan best fits your current needs.

If you have some bumps in your credit history or know you have below-average credit, check out my article on how to still get pre-approved for an online bad credit auto loan.

Recommended Online Auto Loan Sites

Compare auto loans online a myAutoloan. MyAutoloan will shop for the best loan rates for you. You submit one free, no-obligation car loan quote through their secure website, and within seconds you’ll receive up to 4 loan offers from their auto lending partners. You can select the one that provides you with the most benefits and savings.
  • New car auto finance loans
  • Free, no-obligation online auto finance rate quotes
  • Used car financing
  • Prime and mid-range finance lenders
  • Private party or person-to-person loans
  • Auto refinance loans
How myAutoloan works: Submit your information through myAutoloan’s secure website. Once you receive your free, no-obligation car loan quotes, compare and choose the one that best suits your needs. The lender you choose will give you further instructions on using your pre-approved car loan.

Compare Loan Offers Now >>

Apply for a bad credit auto loan online at AutoCreditExpress. Auto Credit Express was founded on June 1, 1999. They are one of the leading bad credit auto loan providers in the US and Canada. If you have bad credit, no credit, or have been turned down for an auto loan because of a low credit rating in the past, chances are AutoCreditExpress can help.
  • Free, no-obligation auto finance quotes
  • Minimum monthly income of $1,500.00
  • First-time buyer’s auto finance loans
  • Bad credit auto finance loans are available
  • Thousands of partners to get you approved
  • No money-down loans are available to those who qualify.
How Auto Credit Express works: Please submit your information through their secure website for a free, no-obligation car loan rate quote by filling out their 3-minute application. Once approved, you can use your approval at one of their thousands of authorized dealer partners. Pick out the vehicle you want and complete your purchase.

Apply with Auto Credit Express >>

All Online Car Buying Tools

My Experience With Pre-approved Auto Loans

I’ve signed up thousands of people during my career in the finance department. When someone already had a pre-approved car loan in place, there were certain things I did and certain things I didn’t.

Below are some of my personal experiences dealing with car buyers with pre-approved auto loans already in place.

  • The only way I will get their financing is if I can beat their current interest rate or lower their payment without extending their car loan term.
  • I know that the customer’s lender or consumer site has most likely coached them and told them to stay away from dealer financing like the plague.
  • I know the customer is set on using their outside financing source, and I have to get them approved for a car loan with a lower interest rate and then try to convince them to switch over to dealer financing.
  • I tend to work harder to get a lower interest rate for the customer. I don’t get paid or hit bonuses when I sign someone up with their pre-approved financing.
  • I can try to confuse, manipulate, or trick the customer into going with the dealership’s financing and risk possibly losing the whole car deal and my job.
  • If a customer insists on using their pre-approved car loan, I can’t get them a better rate or term. I will get them signed up quickly and professionally to get to my next victim, um, I mean customer.
  • I will win some, and I will lose some.

Associated car dealer scams that unethical car dealers may attempt during the finance process of buying a car:

About the author
Carlton Wolf is the author and founder of Auto Cheat Sheet.My name is Carlton Wolf, and I’ve been in the car business since 1994, both retail and wholesale. I created the Auto Cheat Sheet to better educate buyers about the deceptive sales practices used by many dealerships throughout the country. Please understand that not all car dealers are dishonest. However, you never know who you’ll be dealing with, though. I’m willing to share my knowledge and experience with anyone who listens. Keep in mind that I’m a car guy, not a writer.