The Best Used Car Loans

Oportun provides personal loans, credit cards, and a savings account app called Digit. You can qualify online for a loan, even with bad credit or a limited credit history. The U.S. Department of the Treasury certified Oportun as a Community Development Financial Institution (CDFI).¹

Oportun services personal loans in only 12 states: Arizona, California, Florida, Idaho, Illinois, Missouri, New Jersey, New Mexico, Nevada, Texas, Utah, and Wisconsin. Its positive reputation from the Better Business Bureau (BBB) and easy prequalification process place Oportun at the top of our list for used car loans.

Alternatives to Credit History

Credit history is just one of many factors Oportun uses to assess loan eligibility. In addition to or in place of your credit, Oportun considers these factors:

• Annual income
• Monthly debt
• Ability to pay
• Employment history

Oportun can even approve you if you went through bankruptcy in the past. To apply for a personal loan, you need a government-issued ID, proof of address, proof of income, employer information, and a list of your recurring monthly debt payments.

Secured Personal Loans

Oportun provides the option for a secured personal loan against your car title for car owners in Arizona, California, Florida, New Jersey, and Texas. Securing your loan with your car title gets you more money — $2,525 to $18,500 — compared with an unsecured personal loan. Secured loans also typically offer lower APRs than personal loans do. Your car title will be collateral against the loan, but your car will stay with you and you will continue driving as usual while you make loan payments.

Community Focus

Oportun is a federally certified CDFI, which means its primary mission is to promote community development. You can take advantage of free financial coaching, job assistance, and financial support from Oportun and its partnerships with other organizations.

In 2021, Oportun extended a $2 million low-interest loan to the Opportunity Finance Network to be used to make loans to other CDFIs and promote responsible lending to low- and moderate-income communities.²

MyAutoloan is a direct-to-consumer, internet-based financing marketplace. Its one-page application is fast, easy, and secure. With multiple offers, you can choose the terms that are right for you — for example, shorter loan terms to pay off your loan faster.

MyAutoloan offers loan amounts of $8,000 and above to finance or refinance a used car. The company’s reputation, ease of use, and interest rates put it near the top of our list for used car owners looking for loans.

Multiple Lender Matches

After completing a two-minute application, you will receive up to four offers. Compare the loan terms, APRs, and fees to choose the one that’s right for you. Having competing offers is also a great bargaining tool to get the rate you want. Most lenders provide online certification or check within 24 hours to buy the used car you want or refinance your current loan.

As of Feb. 4, 2023, the lowest used car auto rate available from myAutoloan was 2.94 percent. Note that used car loans typically have higher interest rates than new car loans because used cars can be riskier to finance due to the car service and accident histories.

Stellar Reputation

The BBB awarded myAutoloan an A+ rating for its accreditation and business practices.³ In addition, myAutoloan’s Trustpilot review score is 4.1 out of 5 stars. Some negative reviews noted that myAutoloan shares your information with lenders that may contact you personally, which is not ideal if you care about data privacy. On the other hand, many 5-star reviews note the ease of the application process and the benefits of multiple offers.

If you prefer working with a larger, centralized banking institution, we recommend financing your loan through Bank of America (BoA). Members of Bank of America’s Preferred Rewards program receive the most out of BoA loans because they qualify for interest rate discounts. Unfortunately, if your vehicle’s value is less than $6,000, BoA will not consider you for a used car loan.

One-Minute Approval Process

Bank of America’s easy and fast process requires you to provide personal info and your desired loan terms online for the loan approval in 60 seconds. After approval, you’ll have 30 days to think about the offered amount without losing the interest rate locked in at the time of your offer.

Bank of America Preferred Rewards

Bank of America’s Preferred Rewards program applies to bank clients and investing clients with Merrill. Your tier benefits depend on your three-month combined average daily banking or investing balance.

Other benefits for Gold tier members and up include a 25 percent rewards bonus on your Bank of America credit cards, no banking fees, and interest rate discounts on home equity and on auto loans.

Private-Party Car Loans

Bank of America offers refinancing loans, lease buyouts, and private-party loans. Private-party loans apply when you purchase a vehicle from another individual. You can apply for a private-party loan online or by visiting a Bank of America financial center. Private-party loans have the following requirements:

• The seller(s) must be the same as the registered owner(s) listed on the vehicle title.
• You must purchase the vehicle directly from the seller/owner, not on consignment.

Auto Approve provides resources and assistance, specifically with refinancing options such as auto lease purchasing. The company has an A+ rating from the BBB and 4.7 out of 5 stars on Trustpilot, the second-highest customer rating on our list. If you want personalized service with an online loan provider, Auto Approve is a solid option.

Refinancing Options

Auto Approve offers two ways to refinance a used vehicle loan:

• Traditional refinancing: Take out a new loan to cover your existing loan, pay it off, and pay a new loan with a lower APR. If your credit has improved, interest rates have decreased, or your financial situation has changed, it may be time to refinance.
• Auto lease purchase: If you love your leased vehicle, Auto Approve provides an option to help you buy out the lease in full.

Vehicle Protection Plan

You can add an extended warranty to your auto loan with Auto Approve to ensure you get the most out of your used vehicle. This offering includes the following benefits to protect your car against wear and tear:

• Direct payment to any Automotive Service Excellence-certified mechanic in the U.S.
• 24/7 roadside assistance
• Rental car reimbursement of up to $50 per day
• Courtesy towing
• Protection against surprise breakdowns and the cost of parts

Auto Approve builds its vehicle protection plan into your loan, so you pay a single monthly payment.

Easy Approval Process

You need minimal information to get loan approval at Auto Approve. To get a lower rate, you must provide simple documentation, like a driver’s license and proof of insurance. Your application should be approved in seconds, after which a loan consultant will work with you to submit your application to one of the company’s preferred lending partners.

Formerly known as Ally Clearlane, Ally auto loans are the best options for people with bad credit or limited credit histories. Ally’s easy online preapproval process doesn’t require a hard credit pull (though the company will do one with the final loan application). Once Ally prequalifies you, you’ll choose from lease terms between 36 and 75 months. Ally offers refinancing, lease buyouts, and personal and business vehicle financing options.

Ally Customer Service

Ally is a digital-native banking institution, so its online tools are robust. They include the following features:

• Account management to check payment status, balance, and statements
• Monthly or one-time payment scheduling from your checking or savings account
• The Ally Auto mobile app for on-the-go access to your account
• 24/7 online chat
• Secure email

Ally Premier Protection

Ally offers a suite of products under its Premier Protection service warranty plan that extends protection to your vehicle through your loan term. Pricing is based on the type of vehicle and service contract. The chart below details which parts of your vehicle Ally protects through its extended warranty tiers.