Trustedcompanyreviews.com offers free content, reviews and ratings for consumers to read, aimed at helping them compare their options. We may receive advertising compensation from companies featured on our website, influencing the positioning and sequence in which brands (and/or their products) are displayed, as well as affecting the assigned ratings. Please note that the inclusion of company listings on this page does not constitute an endorsement. We do not feature all available providers in the market. With the exception of what is explicitly outlined in our Terms of Service, we disclaim all representations and warranties regarding the information presented on this page. The details, including pricing, displayed on this site may undergo changes at any time.
Best Used Auto Loan
New car buyers are often limited to dealer or automaker financing, but used cars don’t usually come with those restrictions. That opens the door to an almost countless number of used car lenders, many of which offer convenient online applications and account servicing.
Used car loans typically come with higher interest rates than new car loans, and you can run into credit score trouble if you run multiple applications with hard score pulls. The good news is that several lenders offer great rates, solid customer service, a range of used vehicle loan products, and prequalifying that won’t impact your credit score, which makes the buying process much less stressful.
Why trust Trusted Company Reviews
- Comprehensive review rating system.
- We work closely with consumers and experts to create editorial ratings.
Trusted Company Reviews #1 Pick for 2025
- Flexible repayment options
- Borrow up to 125% of a vehicle’s value
- Nationwide availability
Why we love it 💖
PenFed combines competitive rates, flexible loan structures, and nationwide credit union service, making it one of the most versatile options for used car financing.
Our Highest Rated Used Auto Loan Companies
- Credit union service on a national scale
- Loans of up to $150,000 are available
- PenFed’s rates are generally very competitive
- Offers refinancing
- Borrowers must also be credit union members
- Best rates are available by using its car-buying services
- Branches are available almost everywhere
- 30-day rate lock guarantee
- No application or early payoff fees
- Loans start $7,500
- Many auto loans are funded on the same business day
- Loan terms between 48 and 72 months
- Discounts available
- $5,000 minimum loan amount
- 670 minimum credit score
- Pays $100 if borrowers complete a survey within 30 days of loan closing
- Lightstream’s unsecured loans give buyers a choice of almost any vehicle
- Loan terms between 24 and 84 months
- No dealership visit required
- Competitive refinancing rates
- Online applications
- Loan funds in as little as 24 hours in most cases
- No hard credit check or personal information to get loan rates
- Many positive customer reviews
- Prequalification with no credit score hit
- Refinancing available up to $75,000
- Capital One Auto Navigator shows rates and terms for each vehicle
- Borrowers are limited to participating dealers
- $4,000 minimum loan amount
- Loan terms between 36 and 72 months
Financing a Used Car Purchase
Most buyers rely on financing to get behind the wheel, and used car shoppers are no exception. Unlike new car loans, which are often tied to the automaker, used car loans open the door to a wider range of lenders. Keep in mind, though, that annual percentage rates (APRs) tend to run higher for older vehicles, since lenders view them as a greater risk.
Why Shopping Around Matters
While you may be able to finance through the dealership you’re working with, comparing offers from multiple lenders can save you money. Outside financing often comes with better rates, longer terms, or borrower discounts. Many lenders also provide incentives, such as autopay savings, that can make your loan cheaper over time. Doing your homework before you buy is one of the easiest ways to lower your costs.
The Importance of Trusting Your Lender
Finding the right loan goes beyond interest rates. Trust is key. Be sure to read customer reviews and review the fine print before you sign. If you’re unsure about loan terms, payoff amounts, or the application process, reach out to the lender’s customer service team. Their job is to answer your questions, and taking advantage of that support helps ensure you understand exactly what you’re getting into.
Which Is the Best Company for Used Auto Loans?
The best lender for a used auto loan depends on your situation and financial goals. If you’re looking for the lowest rates and strong customer service, a credit union like PenFed may be the right choice. Lightstream works well for borrowers with excellent credit who want unsecured financing, while Capital One makes online shopping and prequalification simple. Bank of America offers nationwide branch support and refinancing options, and Upgrade specializes in refinancing with fast approvals. In the end, the best lender is the one that balances rates, terms, and service in a way that fits your needs.
| Lender | Average Rate | Terms | Maximum Loan Amount | Discounts? |
| PenFed CU | 3.89% | 36–84 months | $150,000 | Yes |
| Upgrade | 7.99% | 24–84 months | N/A | No |
| Lightstream | 6.49% (with autopay) | 24–84 months | $100,000 | Yes – autopay, $100 survey incentive |
| Capital One | ~6% (est.) | 36–72 months | $75,000 | Yes |
| Bank of America | 5.74% | 48–72 months | $85,000 | Yes – account holder discounts |
PenFed
Best Overall
Trusted Company Reviews Rating Score for PenFed: 9.1
Review
PenFed is a credit union, but it offers nationwide service and competitive rates its smaller counterparts can’t. It has flexible loan terms and payment options, and well qualified borrowers may be able to access loans for up to 125% of the vehicle’s value.
About
PenFed, also known as Pentagon Federal Credit Union, is a Virginia-based credit union with more than 90 years in business. It has grown to almost three million members and has a range of lending products available.
Features and Benefits
- PenFed offers credit union services and benefits on a national scale.
- Loans for up to 125% of vehicle value
- Range of loan terms available
- Very competitive rates
- Flexible loan terms are available
- Car-buying services provided by Truecar
- Refinancing is available at higher rates
Why We Chose
We chose PenFed because of its excellent customer service, helpful benefits, and wide range of loan products. The ability to borrow up to 125% of the vehicle’s value is great, and PenFed’s flexible terms make it easier to repay the loan amount on time.
Pros and Cons
Pros
- Extremely competitive rates
- Up to 125% loans available
- Longer loan terms make repayment easier
Cons
- Only PenFed members can qualify for loans
- PenFed does not publish its credit score policies
| Average Rate | Terms | Maximum Loan Amount | Discounts? |
| 3.89% | 36-84 months | $150,000 | Yes |
Bank of America
Best for: Nationwide in-person service
Trusted Company Reviews Rating Score for Bank of America: 8.6
Review
Bank of America is one of the country’s largest lenders, offering a range of financial products for car buyers and others. Its rates and terms are generally competitive, but some of the bank’s discounts are only available to account holders with money in the bank.
About
Charlotte, NC-based Bank of America has been in business for almost eight decades, and it has grown into the second largest bank in the country, behind JPMorgan Chase. It offers a wide range of lending products for autos, including refinancing.
Features and Benefits
Bank of America’s size gives it the ability to offer competitive products and services.
- 30-day rate-lock guarantee
- Online application and loan servicing
- Branch locations across the country
- Customer support available Monday through Friday
- Discounts available
- Loans for private party sales are no longer available
Why We Chose
We chose Bank of America for its expansive network of physical branches, reasonable rates, and strong customer service. Its 30-day rate lock guarantee makes it easier to shop for a car, and it operates across all 50 states.
Pros and Cons
Pros
- Rate lock guarantee
- Multiple discounts available
- Easy prequalification and application process
Cons
- Best discounts reserved for bank customers with high account balances
- Loans for private sales not available
- BofA’s age and mileage limits are more restrictive than others
| Average Rate | Terms | Maximum Loan Amount | Discounts? |
| 5.74% | 48-72 months | $85,000 | Yes |
Lightstream
Best for: Unsecured buying options
Trusted Company Reviews Rating Score for company name: 8.5
Review
Lightstream is owned by Truist Bank, giving it strong financial backing and a wide reach across the country. It is known for personal and auto loans, and it offers a refined, easy-to-use online application. Its unsecured auto loans give buyers the ability to start the shopping process with a set approved financing amount, and the funds are deposited into the buyer’s account, letting them choose where and how they buy. That convenience comes with stricter credit score requirements, and Lightstream’s minimum loan amount makes it not the best choice for cheap used cars under $5,000.
About
Lightstream is a well-known lender in the used and collector car spaces, offering a range of financing products for well-qualified buyers. While it has only been in operation since 2012, Lightstream operates as part of Truist Bank, giving it deep pockets and a national footprint, though many buyers rave about its excellent, personal customer service. Its loans are unique in the industry, in that they are unsecured and do not limit the borrower to a specific vehicle or type of vehicle.
Features and Benefits
- There’s a lot to like about Lightstream, but its online-first services may not be suitable for everyone.
- Fast funding available, sometimes on the same day
- Competitive rates and terms
- No appraisal or restrictions on age or mileage
- Loans from $5,000 to $100,000 available
- Highly rated customer service
Why We Chose
Lightstream made the list for its strong customer service and unique unsecured loan structure, which makes buying a car extremely easy. It also offers competitive interest rates, and its used car loans extend up to $100,000, giving well-qualified buyers a wide range of vehicles to choose from.
Pros and Cons
Pros
- Some loans can be funded on the same day as approval
- Unsecured loan with no mileage or age limits
- 0.50% rate discount available for autopay customers
- Quick and easy loan application process
Cons
- Rates are only available after a hard credit pull
- High minimum credit score requirement
- $5,000 minimum loan amount
| Average Rate | Terms | Maximum Loan Amount | Discounts? |
| 6.49% (with autopay discount) | 24-84 months | $100,000 | Yes, autopay, other |
Upgrade
Best for: Refinancing
Trusted Company Reviews Rating Score for Upgrade: 8.4
Review
Upgrade only offers refinancing, but it sports a good number of great customer reviews. It also has a fast, easy application process, and potential borrowers can check rates without a hard credit score hit. It offers a range of terms, and its rates are generally considered reasonable.
About
Upgrade is an A+ rated, BBB-accredited business based in San Francisco, California. It offers personal loans and auto refinancing, and its website contains a range of financial education materials.
Features and Benefits
- There’s a lot to like about Upgrade, but not everyone has the best experience.
- No hard credit check to get a rate
- Refinancing only
- Fast application and approval
- Stront customer service ratings
- Application and approval happen all online
- Multiple term lengths available
Why We Chose
We chose Upgrade for its solid refinancing options and strong customer service reviews. Its application and loan approval processes are fast, and many people have access to the funds in as little as a day.
Pros and Cons
Pros
- Reasonable refinance rates
- Strong customer reviews
- Rate check without a hard credit inquiry
Cons
- Only offers refinancing
- Some customers had difficulty with the company’s problem resolution process
| Average Rate | Terms | Maximum Loan Amount | Discounts? |
| 7.99% | 24 to 84 months | N/A | N/A |
Capital One
Best for: Easy online shopping
Trusted Company Reviews Rating Score for company name: 8.3
Review
Capital One is well known for its credit cards, but its Auto Navigator program is a great way to finance a new or used vehicle. It offers a refined online shopping experience that gives buyers interest rate and term information up front, making the process much more transparent and convenient. The bank also has refinancing products, though there are several limitations on the vehicle and loan. Finally, while Capital One is easily one of the larger lenders on this list, its loans are only available in the contiguous United States, leaving buyers in Alaska and Hawaii looking for another option.
About
Capital One hasn’t been around as long as other banks, but it has grown into one of the nation’s most recognizable financial brands. It offers lending products across several industries, including mortgages, auto loans, personal loans, and more. Its used loans are unique, in that they are tied to the bank’s used car shopping service, which offers loan payment and term information for each vehicle listed.
Features and Benefits
Capital One rapidly grew into one of the most popular banks in the country, giving it the ability to offer a wide range of services and products.
- Robust online car shopping service
- Capital One offers competitive interest rates
- Multiple terms and payment options available
- Car loans available up to $75,000
- Financing is only available for vehicles purchased through Capital One Auto Navigator service
- Easy prequalification requires no hard credit hit
Why We Chose
We chose Capital One for its convenience and wide availability. Its Auto Navigator tool makes car shopping easier, but some might be turned off by the fact that its financing is only available for vehicles purchased through the service.
Pros and Cons
Pros
- No hard credit pull for prequalification
- Loans available for up to $75,000
- Capital One’s tech tools are among the best in the industry
Cons
- Borrowers must use Capital One’s car-buying service
- Not available in Alaska or Hawaii
| Average Rate | Terms | Maximum Loan Amount | Discounts? |
| (estimated) ~6% | 36-72 months | $75,000 | Yes |
Frequently Asked Questions
These are some of the most common questions surrounding used auto loans.
In most cases, zero-percent financing is only available for new vehicles. It’s often possible to find incentives and discounts for used models, but you likely won’t see no-interest financing for used cars.
Interest rates can vary wildly between borrowers, making it difficult to nail down a “good rate.” That said, the borrower’s credit score plays a significant role in determining their loan rates, with higher scores yielding better rates.
In general, it’s a good idea to put 10% down on a used car loan, which will help reduce your monthly payments and keep interest rates reasonable. Paying more or less is fine, however, keep in mind that paying more up front is one of the best ways to save money on car loans.
Conclusion
Used auto loans give buyers more flexibility than new car financing, since they aren’t tied to automakers or dealers. While rates tend to be higher for used cars than for new ones, many lenders offer competitive options, strong customer service, and perks such as prequalification, refinancing, and online shopping tools.
PenFed Credit Union leads the pack for low rates and flexibility, while Lightstream, Bank of America, Capital One, and Upgrade each bring unique benefits that can fit different borrower needs. Choosing the right lender depends on your goals, whether that means you’re looking for low rates, excellent service, or refinancing to save money.