Whether you need a vehicle to get to and from work or you’re ready to purchase your dream sports car, an auto loan is often necessary. Because multiple companies offer car loans with different terms, the application process can be overwhelming. Our partners at ConsumerAffairs researched the best car loans in Phoenix to get the car you want in your driveway.
Car loans are easy to find in Phoenix through banks, credit unions, car dealerships and online lenders. Your eligibility and financing terms are determined by several factors, including your credit score, your income and the cost of the vehicle you are purchasing.
Getting pre-approved for a loan has multiple benefits, including:
Setting a budget
Understanding what terms lenders are willing to offer
Creating a better negotiating position with the dealer
Saving time and hassle at the dealership
Comparing car loans in Phoenix
Lenders primarily base the rates and terms of your car loan on your credit score. The average credit score for Phoenix residents purchasing a new vehicle is around 714, and the average score for people buying a used vehicle is 655. Phoenix residents with excellent credit typically receive loans with an annual percentage rate (APR) between 2 and 3 percent, while those with poor credit receive loans with APRs between 10 and 18 percent.
Lenders may also require specific documentation, including:
Proof of income: Lenders generally have you prove your income through pay stubs or W-2 tax forms.
Proof of insurance: Before taking out a loan for an auto purchase, many lenders require you to have insurance that covers the vehicle.
Proof of identity: This is often done by providing a signed photo ID.
While the APR affects the total cost of your loan, pay attention to loan terms as well. Loans with longer terms have a lower monthly payment but cost more overall. Typical car loan terms in Phoenix range from 24 months to 72 months or longer.
Borrowers in Phoenix with poor credit may need to put down a more substantial down payment. Paying more upfront reduces the total amount of your loan, resulting in lower monthly payments or a reduced loan term.
Buying a car comes with additional costs, so check for fees when comparing loans and make sure you leave enough money for:
Loan fees, including origination fees and documentation fees
Title and registration fees
Take advantage of the loan calculators offered by many online banks and lenders to work out your monthly payment. Always shop around to find the best car loan rate at comfortable terms. Good research leads to a good buying experience.
LightStream is a division of SunTrust Bank. The company deposits the full loan amount into your bank account once approved, allowing you to negotiate and purchase your vehicle as a cash buyer. LightStream also guarantees to beat qualified offers from competitors. Phoenix customers appreciate the quick online application.
Auto Approve specializes in car loan refinancing and helps reduce your monthly payments by finding loans with lower interest rates. You can get a quote in minutes on the company’s website. Reviews from Phoenix recommend the company for its friendly customer service and quick communication.
LendingTree is a free online service that helps consumers compare car loans from multiple lenders. The company’s website also boasts several free resources, such as loan calculators, auto insurance rates and lender reviews. Customers from Phoenix appreciate the user-friendly interface, but some people report lenders pulling credit reports without authorization.
myAutoloan.com lets you quickly review up to four different car loan offers from participating lenders. This company can help you obtain a car loan for both new and used vehicles, and it refinances existing car loans. Phoenix customers say service was quick and that they were pleased with the terms and rates of their loans.
Capital One pre-qualifies customers for a car loan in just minutes without affecting their credit score. The bank offers loans for new and used vehicles. You can also quickly view inventory from more than 12,000 participating dealers that will work with your pre-approval. Reviews from Phoenix customers recommend the company for its useful online tools.