Investopedia is dedicated to helping you find the right auto lender for your personal financial situation. Our full-time research and editorial teams conducted comprehensive research into the auto loan industry, focusing on 16 lenders. Each lender was evaluated on 63 criteria in five categories: cost of loans, loan terms, borrowing requirements, customer experience, and additional features.
Our editors and researchers independently evaluate all recommended products and services. If you click on the links we provide, we may receive compensation. Our advertising partnerships are not a factor in how we evaluate products, though they may affect the order of products you see listed in our articles.
How We Research Auto Lenders
We chose a selection of 16 banks and credit unions to review, based on the results of our research into the auto loan industry. That included an analysis of consumer interest and a competitive analysis. Lenders were evaluated based on whether they provide new, used, or refinance loans, and loan aggregators were omitted from the research process. The research and data collection process occurred from November 2024 into February 2025.
Data Collection and Scoring
We developed a quantitative model to objectively score auto lenders in five key categories; 62 criteria were collected for each lender, and one criterion was calculated. 35 of those criteria were given weights to score and rank those lenders. Information was collected by Investopedia from company websites, media representatives, and customer support. Some of the research criteria were aggregated into combined factors (customer review rating, for example). The unweighted criteria were collected for background to help inform our reviews and recommendations.
Each company was scored using our “Investopedia’s Rating” scale of 0.00 to 5.00.
- All data points were scored on a 0.00 to 1.00 scale.
- Binary criteria were scored on a scale of 0 or 1.
- Continuous criteria were scored so that the minimum data value was re-scaled to 0.00 and the maximum value was re-scaled to 1.00.
- Aggregated criteria scores were calculated based on scores of individual criteria, and the results were re-scored on a continuous scale.
- Any data point that was not disclosed by a company was given a score of 0.
Auto Lender Evaluation Categories
Our evaluation categories were weighted as follows. These categories consist of 63 criteria for each of the 16 companies, resulting in 1,008 data points that make up our rubric.
| Category | Weight | Number of Criteria |
|---|---|---|
| Cost of Loans | 34.00% | 12 |
| Loan Terms | 28.00% | 13 |
| Borrowing Requirements | 22.00% | 14 |
| Customer Experience | 10.00% | 11 |
| Additional Features | 6.00% | 13 |
| Total | 100.00% | 63 |
The weights and resulting lender scores were used to determine our picks for the best auto loans.
Cost of Loans
We researched the costs of new, used, and refinance loans. This category consisted of the following criteria with the accompanying weights.
| Criterion | Weight |
|---|---|
| Autopay Discount | 2.00% |
| New Minimum Fixed APR | 1.50% |
| New Maximum Fixed APR | 6.50% |
| Used Minimum Fixed APR | 2.00% |
| Used Maximum Fixed APR | 8.00% |
| Refinance Minimum Fixed APR | 2.00% |
| Refinance Maximum Fixed APR | 8.00% |
| Maximum Origination Fee | 2.00% |
| Maximum Late Payment Fee | 2.00% |
| Total | 34.00% |
Autopay Discount
Autopay discounts usually provide a small percentage off the APR of a car loan, like 0.25% or 0.50%. We scored this on a continuous scale from 0 to 1, awarding more points to lenders with larger autopay discounts. This criterion was weighted at 2.00% of the overall score.
New Minimum Fixed APR
Rate shopping is an important part of buying or refinancing a car. We scored minimum fixed APRs on a continuous scale from 0 to 1, with lower minimum APRs getting the higher score. This criterion was weighted at 1.50% of the total score; minimum APRs were given lower weights than maximum APRs because fewer people would qualify for the best rates.
New Maximum Fixed APR
We scored maximum fixed APRs for new car loans on a continuous scale from 0 to 1, with higher APRs earning higher scores. Higher APRs earned higher scores because lenders with higher maximum APRs may be more willing to lend to people with less-than-great credit. This criterion was weighted at 6.50% of the total score.
Used Minimum Fixed APR
We treated used car loan APRs as more important than new car loan APRs because the used car market is generally larger and the majority of auto loans are used car loans. Minimum fixed APRs for used car loans were scored on a continuous scale, with lower APRs earning better scores. This factor was weighted at 2.00% of the overall score, because relatively few people with qualify for the best possible rate.
Used Maximum Fixed APR
Maximum fixed APRs for used car loans were scored on a continuous scale, with higher APRs earning better scores. This factor was weighted at 8.00% of the overall score, as it’s related to the ability of many people to obtain a loan.
Refinance Minimum Fixed APR
Minimum fixed APRs for refinance loans were scored on a continuous scale, with lower APRs earning higher scores. This criterion was weighted at 2.00% of the total score, because most people won’t qualify for the lowest rate.
Refinance Maximum Fixed APR
Maximum fixed APRs for refinance loans were scored on a continuous scale, with higher APRs earning better scores to reflect the increased accessibility of lenders with higher maximum APRs. This criterion was given a weight of 8.00% of the total score.
Maximum Origination Fee
Most lenders included in our research don’t charge an origination fee, but a few do. This criterion was scored on a binary scale; lenders that don’t charge an origination fee scored 1, and lenders that do charge such a fee scored 0. This criterion was weighted at 2.00% of the overall score.
Maximum Late Payment Fee
Most (but not all) auto lenders included in our research charge late fees, while some don’t disclose if they do or not. This criterion was scored on a binary scale, based on whether or not the lender discloses its late payment fee terms; lenders that do disclose their terms scored 1, and lenders that do not scored 0. This criterion accounted for 2.00% of the total score.
Loan Terms
Loan terms refers to how fast you get the loan, the loan amounts, the repayment terms (how long you have to repay the loan), and how much you can borrow. The following criteria were included in this category.
| Criterion | Weight |
|---|---|
| Minimum Days to Receive Loan | 2.00% |
| New Minimum Loan Amount | 1.50% |
| New Maximum Loan Amount | 2.50% |
| New Minimum Repayment Terms | 0.50% |
| New Maximum Repayment Terms | 1.50% |
| Used Minimum Loan Amount | 2.50% |
| Used Maximum Loan Amount | 3.50% |
| Used Minimum Repayment Terms | 1.50% |
| Used Maximum Repayment Terms | 2.50% |
| Refinance Minimum Loan Amount | 2.50% |
| Refinance Maximum Loan Amount | 3.50% |
| Refinance Minimum Repayment Terms | 1.50% |
| Refinance Maximum Repayment Terms | 2.50% |
| Total | 28.00% |
Minimum Days to Receive Loan
Car shopping can take some time, but sometimes you may need to get a loan quickly to close on a car deal. Some lenders can deliver the funds as soon as the same day. We scored this factor on a continuous criterion, giving higher scores to lenders with faster loan disbursal. This criterion was given a weight of 2.00% in the total score.
New Minimum Loan Amount
The amount you can borrow plays a role in the vehicle you can buy. Look for a lender that can accommodate your vehicle of choice so you can get the exact loan amount you need, whether you want to buy an expensive car or a cheap car. We scored minimum loan amounts for new car loans on a continuous scale, with lower loan amounts scoring higher because this indicates a wider range of possible loan amounts. This criterion amounted to 1.50% of the total score.
New Maximum Loan Amount
Maximum loan amounts for new car loans were scored on a continuous scale from 0 to 1, with higher loan amounts scoring higher because this indicates a wider range of possible loan amounts. This criterion was weighted at 2.50% of the total score.
New Minimum Repayment Terms
The time you have to repay a loan affects your monthly payment amount and the total amount you end up paying—longer terms mean a smaller monthly payment but a higher overall cost. It’s helpful when a lender offers a wide range of terms to suit your needs. We scored minimum repayment terms for new car loans on a continuous scale from 0 to 1, with lower minimum terms earning better scores. This criterion was given a weight of 0.50% in the overall score.
New Maximum Repayment Terms
We scored maximum repayment terms for new car loans on a continuous scale, giving better scores to lenders with higher maximum terms. This criterion was weighted at 1.50% of the total score.
Used Minimum Loan Amount
We scored minimum loan amounts for used car loans on a continuous scale from 0 to 1, with lower minimum amounts earning better scores. Used loan terms were weighted higher than new loan terms; this criterion was weighted at 2.50% of the overall score.
Used Maximum Loan Amount
Maximum loan amounts for used car loans were scored on a continuous scale, with higher maximum amounts earning better scores. This factor was given a weight of 3.50% in the overall score.
Used Minimum Repayment Terms
We scored minimum repayment terms for used car loans on a continuous scale, from 0 to 1. Lower minimum repayment terms were given higher scores, as they reflect a wider range of options. This criterion was given a weight of 1.50%.
Used Maximum Repayment Terms
Maximum repayment terms for used car loans were scored on a continuous scale, from 0 to 1. Longer repayment terms were given better scores. This criterion was given a weight of 2.50%.
Refinance Minimum Loan Amount
If you’ve been paying off a loan and federal rates drop, or your credit score improves, it might make sense to refinance. Getting a lower APR can save you hundreds of dollars over the course of a loan, but you need to find a lender that can match your remaining loan balance. If you have a low remaining balance, that may be hard to do. We scored this criterion on a continuous scale, from 0 to 1. Lenders with lower minimum amounts for refinance loans scored higher. This criterion was given a weight of 2.50%.
Refinance Maximum Loan Amount
It’s also important to find a lender that can match a high loan balance, if necessary. Maximum loan amounts for refinance loans were scored on a continuous scale, from 0 to 1; higher maximum loan amounts were given better scores. This criterion was given a weight of 3.50% in the total score.
Refinance Minimum Repayment Terms
Minimum repayment terms for refinance loans were scored on a continuous basis, from 0 to 1. Lower minimum term options were given higher scores. This criterion was weighted at 1.50% of the total score.
Refinance Maximum Repayment Terms
We scored maximum repayment terms on a continuous scale, with higher maximum terms getting higher scores to reflect the value of flexibility in repayment options. This criterion was weighted at 2.50% of the overall score.
Borrowing Requirements
Lenders set different borrowing requirements for their loans, although they don’t always disclose much of this information. When it comes to auto loans, you may need to meet certain credit and income requirements as the borrower, and the vehicle may need to meet certain requirements itself, like age and mileage. The following criteria were scored and weighted in our review of auto lenders.
| Criterion | Weight |
|---|---|
| List of States Available | 2.00% |
| Membership Requirement | 8.00% |
| Joint Application/ Co-Borrowers/ Co-Signer | 2.00% |
| Minimum Recommended Credit Score to Qualify | 2.00% |
| Minimum Income Requirement | 2.00% |
| Loan-to-Value Ratio | 2.00% |
| Maximum Accepted Mileage | 2.00% |
| Maximum Accepted Age | 2.00% |
| Total | 22.00% |
List of States Available
Lenders that serve more people in more states end up with more experience, which may translate into a better service. Most lenders in our research are available nationwide. We scored state availability on a continuous scale, with more state availability earning a higher score. This factor accounted for 2.00% of the total score.
Membership Requirement
Banks don’t usually have special requirements to open an account, but credit unions typically do have membership requirements, like living in certain areas, working in certain jobs, or being a part of certain organizations. You can often join these organizations and gain membership eligibility at credit unions for $15 or less. You may have to open a savings account with a small amount of money if you want to take out a loan from a credit union, as well. This criterion was scored on a binary scale; lenders with no membership requirement were given a score of 1, and lenders with a requirement were given a score of 0. This criterion accounted for 8.00% of the total score.
Joint Application/ Co-Borrowers/ Co-Signer
It can be tough to find a loan if you don’t have the best credit. Applying with a co-borrower or co-signer who does have good credit can increase your odds of approval. There are some differences between co-borrowers and co-signers, but in each case they share liability for the debt. We scored this factor on a binary scale; lenders that allow you to apply with another person in any way earned 1 point, and lenders that do not earned 0 points. This criterion accounted for 2.00% of the total score.
Minimum Recommended Credit Score to Qualify
It can be helpful to know a lender’s borrower requirements when shopping for a loan, but most lenders don’t disclose these details publicly. Still, some do. We scored this criterion on a binary scale, based on whether or not lenders are transparent about this requirement: Lenders that reveal their minimum recommended credit requirement were given a score of 1, and lenders that do not received a 0. This criterion was given a weight of 2.00% in the overall score.
Minimum Income Requirement
Lenders occasionally reveal their minimum income requirements, although most do not. We scored this criterion based on whether or not lenders reveal this information. Lenders that are transparent with this requirement were given a score of 1, and lenders that are not were given a score of 0. This criterion was given a weight of 2.00% in the overall score.
Loan-to-Value Ratio
Loan-to-value (LTV) ratio refers to the amount of the loan compared to the value of the vehicle. A maximum LTV ratio of 120% means you can borrow up to 120% of the value of the vehicle. You may want to borrow more than the vehicle’s worth to help pay for the extra fees that can come with buying a car, but this can put you at risk of being upside-down on your loan. We scored this criterion on a binary scale; lenders that are transparent about their maximum LTV ratio scored 1, and lenders that aren’t scored 0. This criterion was given a weight of 2.00% of the overall score.
Maximum Accepted Mileage
If you want to buy a used car, you’ll have to find a lender that accommodates the vehicle’s age. Different lenders have different maximum accepted mileages; some are as low as 100,000, others are 150,000, and some lenders have no limit. This criterion was scored on a continuous scale; lenders with higher maximum mileage scored better. This criterion was given a weight of 2.00% in the total score.
Maximum Accepted Age
When shopping for a used car loan, the age limit is as important as the mileage limit. Some lenders have maximum age limits as low as 6 years, while others allow 10 or 20 years or have no limit. We scored maximum accepted age on a continuous scale, giving better scores to lenders with higher maximum ages. This criterion accounted for 2.00% of the full score.
Customer Experience
Investopedia researched the following criteria to understand the experience of the average borrower. Certain criteria, noted below, were combined into an overall customer satisfaction rating that took into account customer ratings and the number of ratings.
| Criterion | Weight |
|---|---|
| Customer Service Availability | 2.00% |
| App Store Rating | Included in Overall Customer Satisfaction Score |
| App Store Review Ct. | Included in Overall Customer Satisfaction Score |
| Google Play Rating | Included in Overall Customer Satisfaction Score |
| Google Play Review Ct. | Included in Overall Customer Satisfaction Score |
| Trustpilot Rating | Included in Overall Customer Satisfaction Score |
| Trustpilot Review Ct. | Included in Overall Customer Satisfaction Score |
| Overall Customer Satisfaction Score | 8.00% |
| Total | 10.00% |
Customer Service Availability
You may not need to talk to someone when applying for an auto loan online, but in some cases you may have a question—and if something goes wrong, it’s important to speak to someone as soon as possible to ensure a smooth car buying process. We researched the number of hours per week that lenders are available for phone customer support. This criterion was scored on a continuous scale, from 0 to 1, with more phone availability earning higher scores. This criterion was given a weight of 2.00% in the overall score.
Overall Customer Satisfaction Score
Investopedia’s overall customer satisfaction score comes from combining data points from a number of sources. It looks at customer satisfaction ratings and the number of raters in each case, making accommodations for scores with different numbers of raters. The following criteria were aggregated into this overall customer satisfaction score:
- App Store Rating
- App Store Review Count
- Google Play Rating
- Google Play Review Count
- Trustpilot Rating
- Trustpilot Review Count
This overall satisfaction criterion was scored on a continuous scale, giving higher scores to lenders with higher customer satisfaction. This factor was given a weight of 8.00% in the overall score.
Additional Features
Auto lenders may provide a number of features with their loans, along with a car-buying service, specialty loan types, warranties, and more. The following additional features were weighted to score auto lenders.
| Criterion | Weight |
|---|---|
| Car-Buying Service | 2.00% |
| Cash-Out Refinancing | 2.00% |
| Private-Party Vehicle Purchases | 2.00% |
| Total | 6.00% |
Car-Buying Service
Some auto lenders offer car-buying services to help you find a vehicle, making the process simpler by wrapping up the shopping, buying, and financing in one package. We scored this criterion on a binary scale; lenders that offer a car-buying service got a score of 1, and lenders that don’t got a score of 0. This criterion was given a weight of 2.00%.
Cash-Out Refinancing
Cash-out refinancing allows you to borrow more money than your vehicle is worth, receiving the extra amount as cash. Most lenders in our research did not offer this option, but a handful did. We scored this criterion on a binary scale; lenders that offer cash-out refinancing scored 1, and lenders that don’t scored 0. This factor was given a weight of 2.00% in the overall score.
Private-Party Vehicle Purchases
When you get a new or used car loan, some lenders require you to buy a car from a dealership. But others don’t have that limitation—they allow you to buy cars from independent sellers as well, who are known as private parties. Around half of the lenders in our research allow you to buy vehicles from private parties. This was scored on a binary scale; lenders that allow private-party vehicle purchases were given a score of 1, and lenders that don’t were given a score of 0. This criterion was given a weight of 2.00% of the overall score.
Criteria Collected But Not Weighted
The following criteria were collected but not weighted. Some were collected for background or editorial purposes, to inform our company reviews. In other cases, criteria were not weighted because all of their data points across companies were identical.
Costs of Loan
- Minimum Origination Fee
- Minimum Late Payment Fee
- Prepayment Fee
Borrowing Requirements
- Loan Purpose (New, Used, Refinance)
- Type of Institution
- Online-Only Institution
- Minimum Credit History
- Maximum Debt-to-Income Ratio
- Bankruptcy Restrictions
Customer Experience
Additional Features
- Pre-Qualification Available
- Restrictions on Loan Use
- Better Rates With Partners
- Pays Your Creditor
- Discounts Available
- Auto Purchase/Refinance Rebate/Promotion
- Partner Dealerships
- Warranty Availability
- Lease Buyout Loan
- First-Time Car Buyer Program
Meet the Team
Isaac Braun
Research Manager
Isaac Braun is the full-time Research Manager for Investopedia. He has analyzed data for over a decade, with over five years in the digital media landscape, and he holds a degree in communication and culture from The Media School at Indiana University – Bloomington. Isaac believes it is paramount to provide the most accurate data-driven product recommendations to help readers make educated decisions.
Sana Siddiqui
Research Analyst
Sana Siddiqui is a full-time Research Analyst at Investopedia with over 10 years of experience focusing on financial products and services. She has a bachelor’s in communications from Southern New Hampshire University. Sana’s expertise in lending and underwriting gives her broad insight into the business practices of the financial industry.
Brendan Harkness
Senior Editor, Financial Products and Services
Brendan is currently a full-time senior editor of financial products and services at Investopedia. He has a decade of experience researching, writing, and editing content for financial and business publications about banking, credit and debt, auto loans, credit cards, and more. Previously, he was a managing editor at Credit Card Insider.
:max_bytes(150000):strip_icc()/Primary-Image-auto-loan-review-methodology-7552736-8ff88e3f9b5548ad9d96c5add4de14b2.jpg?w=1200&resize=1200,0&ssl=1&description=How+We+Review+and+Rate+Auto+Lenders){kind=link}