Purchasing a car is a difficult decision, especially if you’re getting an auto loan. Your credit score, the amount borrowed and the length of your term determine your total loan cost, and it’s important to find a loan that suits your needs. We researched the best car loans in Denver to help find the best rates and lowest cost for your vehicle purchase.
Many companies provide car loans — it’s a good idea to check with more than one lender before choosing one. Know your budget, the interest rates you qualify for and the various term lengths offered by lenders.
Car loans are available from:
Most banks, credit unions and online lenders in Denver offer loan pre-approval, which allows you to arrange financing before shopping for a new car. Getting a pre-approval for a loan can be a great benefit that lets you:
Set a budget before shopping
Compare several loan offers
Negotiate for a vehicle as a cash buyer
Shop for cars at multiple dealerships
Applying for loans with two or three lenders creates competition for your business and lets you choose the loan with the most favorable terms.
What credit score is needed for a car loan in Denver?
Your credit score is a critical factor in qualifying for loans and receiving a low annual percentage rate (APR). New car rates in Denver run from 2 to 5 percent for car buyers with excellent credit. Denver residents with bad credit receive rates that are generally between 12 to 18 percent.
A down payment can significantly increase your chance to be approved while lowering your APR. Sometimes lenders set a maximum loan amount, so a down payment helps if the amount you need is higher than what the lender approves. A more significant down payment also reduces your monthly payments and the length of your loan.
What loan terms are available in Denver?
Most car loans last between 36 and 60 months, though some lenders offer loans with terms up to 84 months. Extended loan terms lower your monthly payments but increase the overall cost of the loan because of additional accrued interest.
What additionals fees and expenses can I expect?
Expect a few additional fees from your lender or the car dealership, including documentation fees. You also need to pay title and registration fees, state sales tax and insurance costs. Make sure your loan amount is high enough to cover the cost of the car as well as additional upfront costs.
How do I qualify for a car loan with bad credit?
Many online lenders specialize in working with Denver residents who have bad credit or no credit history. Making a more substantial down payment helps you qualify for a loan, but expect to pay a higher APR. If you’re working to improve your credit score and can wait to purchase a vehicle, you can save thousands of dollars.
Having a friend or relative with strong credit co-sign the loan lets you use their credit for a better APR, but your co-signer is responsible for the loan if you default. Most lenders let you refinance your loan after six months to a year if your credit improves and you qualify for a better APR.
LightStream is the online, consumer-lending division of SunTrust Bank. LightStream offers low, fixed-rate auto loans and guarantees to beat any qualifying rate offered by a competitor. The company provides loans for new and used cars as well as refinancing options. Denver customers appreciate the website’s easy-to-use interface.
Auto Approve provides auto loan refinancing to help Denver residents lower their interest rates and monthly car payments. Auto Approve works with loan consultants and is part of a network of banks, finance companies and credit unions. Denver customers say the company’s representatives are friendly and knowledgeable.
LendingTree is an online loan broker that connects customers with lenders, banks and other financial partners to provide rate comparisons. The company offers online tools and resources, including lender reviews and loan calculators. Reviews from Denver praise the site for its straightforward comparison tools and multiple options.
myAutoloan.com is an online-based auto financing company that matches you with lenders. MyAutoloan.com provides new and used car loans, lease buyout loans and refinancing options. The company sends you up to four loan offers within minutes. Denver customers say the company helped them find a better rate on their car loan.
Capital One provides auto financing for new and used cars. The bank also offers an Auto Navigator feature that helps car buyers find vehicles for sale at dealerships that accept pre-qualification from Capital One. The company’s website has a variety of tools and features. Denver car buyers appreciated the simple application process.