If you’re considering buying a car through Amazon Autos, you may be wondering how the online car-buying process works, and how to get the best financing deal. Amazon Autos works with a network of participating lenders, but you don’t have to assume the first financing offer you see is your best option.
When you’re financing a car, comparing loan offers can help you find a lower interest rate and better terms. Here’s how the Amazon Autos process works, plus what toknow before financingyour next car, wherever you chooseto buy.
How buying acar through AmazonAutos works
Amazon Autos is an online car-buying marketplace, not a lender. Shoppers can browse vehicles, compare dealer-set prices, apply for financing through participating lenders and complete much of the purchase process online.
Amazon Autos currently supports financing through lenders including Ally, Chase, Ford Motor Credit, Santander and Wells Fargo. After submitting a credit application, eligible shoppers can review financing options during checkout and electronically sign their paperwork.
Amazon doesn’t set vehicle prices; dealers do. Once the purchase is complete, you’ll pick up the vehicle at the dealership.
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Where to shop around
Amazon Autos lets shoppers compare financing offers from participating lenders, but that doesn’t mean you should stop there. Comparing rates and loan terms from multiple lenders can help you find a better deal.
One way to shop around is to get prequalified with an outside lender before completing your purchase.That gives you a rate and loan terms to compare with the financing offers you receive through Amazon Autos. If the outside lender offers a better deal, you can use that as a benchmark when deciding how to finance your car.
Amazon Autos can make buying a car more convenient, but convenience isn’t necessarily the same as getting the lowest financing rate. It’s worth getting quotes from other lenders before you commit.
For example, Consumers Credit Union offers competitive rates with no origination fee. Amazon Autos doesn’t charge a vehicle-order fee, although dealers may charge their own fees.
Tenet is another option to consider, particularly if you’re buying an EV. It specializes in EV financing and doesn’t charge fees.
If you prefer to compare multiple offers with one application, myAutoloan is another option. It connects borrowers with up to four prequalified offers and finances both new and used cars.
Consumers Credit Union Auto Loan
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APR
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Loan type
New and used cars, auto refinancing, RVs, boats, classic cars, powersports vehicles
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Loan amounts
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Terms
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Minimum credit score
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Fees
No origination fee. $30 late fee after 10-day grace period
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Availability
Financing available nationwide. Membership in CCU requires a one-time $5 fee to the Consumers Cooperative Association and a $5 deposit into a savings account.
Pros
- Low rates for qualified borrowers
- Custom terms between 1 and 90 months available
- No restrictions on car age or mileage
- Financing up to 125% of the vehicle value
- Qualified buyers can push first payment back up to 60 days
Cons
- You must bundle automatic payments and use car-buying service to unlock the lowest rates
- No prequalification with a soft credit check.
Tenet Auto Loans
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Annual Percentage Rate (APR)
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Loan type
New and used EVs, refinancing, lease buyouts
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Loan amounts
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Terms
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Minimum credit score
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Fees
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Availability
Tenet currently only operates in 31 states and Washington, D.C.
Pros
- Rates are the same for new and used vehicles
- Funding available in one or two days
- Borrowers can finance the purchase and installation of a home charger
Cons
- Only finances EVs
- Not available in all states
- $15,000 minimum financing
- Restrictions on vehicle mileage and age
- Open to borrowers with fair credit (minimum 600 score)
- Quickly connects buyers to loan offers in minutes
- No early payoff fees
- Prequalification available
- Provides multiple offers
- Fully online application available
- Co-borrowers and co-signers allowed
- Not available in all states
- Limited customer service
FAQs
Where can you get a car loan?
There are three common ways of financing a car: dealer financing, traditional banks and online lenders. Dealer financing is where the dealer acts as the middleman to help you secure a loan for your purchase. Traditional banks and credit unions also offer car loans directly, and this is a good way to continue a relationship with an institution you’re already banking with. Online lenders can include neo banks and online marketplaces that match you to lenders that fit your needs.
What’s a good rate on a car loan?
Auto loan rates are influenced by the benchmark rate set by the Federal Reserve. Having a high credit score and healthy finances will help give you the best chance at qualifying for a low rate.
What credit score do you need for a car loan?
To get the most favorable financing terms when buying a car, you’ll need a credit score of at least 670, which is considered “good” credit. However, exact requirements vary by lender so it’s not impossible to get approved for a car loan even with bad credit.
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