Buying a car is a significant investment, and it’s essential to get the best car financing options in California to ensure the lowest interest rate possible. This guide provides all the information you need to make an informed decision.
To get the best car financing options in California, start by knowing the type of vehicle you want and comparing the different types of financing available. Many banks and third-party lenders offer car financing, but not all have the same rates and terms.
Auto Loan Qualification Criteria
All lenders look at your ability to repay the loan, and the essential tool to determine that is the credit score. It’s crucial to improve your credit score to qualify for car financing. Other qualification criteria include documentation and downpayment requirements.
Preview of the Best Car Financing Options in California
Bank of America: Best for Buyouts
- Bank of America offers a variety of auto financing options at competitive rates, including discounts for existing customers. BOA offers auto loans between $7,500 and $150,000 for terms ranging from 12 to 75 months. However, BOA only finances vehicles less than ten years old with mileage, not exceeding 125,000 miles.
PenFed Credit Union: Best Overall
- PenFed Credit Union is membership-based with flexible entry requirements. Its APR is 0.99% for new vehicles and 1.99% for used cars. The loan has a 36 to 84 months repayment period, and loan amounts range between $500 and $100,000. PenFed finances up to 110% of the value of the car for both old and new vehicles.
Consumers Credit Union (CCU): Best Credit Union for Loans
- CCU has no minimum and maximum loan amounts up to 84 months. Discounts of up to 0.5% are available if you use their autopay.
LightStream: Best for Good Credit Scores and Online Lending
- LightStream provides online car financing to clients with excellent credit scores. You can apply for loans within the range of $5,000 to 100,000. Its lease buyout ranges between 3.49% and 10.24%.
Capital One: Best for Bad Credit Scores
- Capital one caters to borrowers with credit scores as low as 500. Capital one offers loans beginning from $7,500 for used vehicles repayable between 24 months to a maximum of 84 months.
Chase Auto: Best for Used Cars
- Chase Auto presents easy financing for used cars and provides car buying and management options. You can apply for car loans between $4000 and $ 600,000 with no downpayment requirements. As an existing Chase client, you qualify for discounts of 0.25%.
Final Word
When looking for the best car financing options in California, the loan’s interest rate and monthly payments are crucial factors. Most car buyers would agree that the best car financing options in California provide loans with low-interest rates and manageable monthly payments.
