How to Get an Instant Auto Loan
Buying a new car is exciting, but there’s nothing worse than being stuck at the dealership for hours. Although there are tires to kick, prices to negotiate and mountains of paperwork to sign, getting an auto loan doesn’t have to take your entire weekend.
Instant auto loans expedite the auto financing process, which can take hours or even days. Here’s how to get a hassle-free instant auto loan.
What is a same-day or instant auto loan?
A same-day or instant auto loan is a loan that can be approved in less than an hour, as long as you meet certain criteria. Then, you should receive funds the same day that the lender approves you.
Many times, an instant auto loan is actually a preapproved car loan. These aren’t car loans exactly. Instead, it’s an offer based on a hard credit pull. You can think of it almost as a redeemable certificate.
After you’re preapproved, you’ll fill out a formal application when you get to the car lot (or online, in some cases). Approval should only take a few minutes at this point. If approved, the lender will usually send the money directly to the dealer or to your bank account by direct deposit.
Where to get an instant auto loan
Not all banks, credit unions and online lenders offer instant auto loans. Here are some that do.
| Lender | Starting APR* | Loan terms | Loan amounts | Possible time to funding | |
|---|---|---|---|---|---|
 | 5.54% | 48 to 72 months | From $7,500 | 60 seconds for approval; instant funding | |
 | 5.59% | 24 to 84 months | From $4,000 | Minutes for prequalification; immediate funding once approved at dealer | |
 | 4.99% | 12-84 months | $250-$500,000 | Same-day approval; funding within a half an hour of approval | |
 | 6.94% (with autopay) | 24-84 months** | $5,000-$100,000 | Approval decisions happen “shortly, within business hours”; then, same-day funding |
*Please note that the information in this table applies to new car loans, not used.
**Loan term disclosure: Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $25,000 loan at 7.49% APR with a term of 3 years would result in 36 monthly payments of $777.54. © 2024 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Why we like it: This big bank offers customer service via live chat — but if you prefer working face-to-face, you can also visit a branch. You also don’t need to be a Bank of America member to get an auto loan.
What to know: You can only use a Bank of America auto loan at official franchise dealers (like your local Toyota or Ford dealer) and some independent dealers (CarMax, Carvana and Enterprise Car Sales).
What to do next: Read our expert Bank of America auto loan review.
Why we like it: Capital One‘s Auto Navigator tool can help you shop for a car and get preapproved in one easy step. Capital One is also a solid choice whether you have good or bad credit. Rates are competitive for excellent credit, but it accepts credit scores as low as 500.
What to know: You can only use a Capital One auto loan to buy from a partner dealer, and you must go to the dealer to finalize the loan. Capital One also partners with other lenders, so the offers you see on Auto Navigator may or may not come from Capital One itself.
What to do next: Read our expert Capital One auto loan review.
Why we like it: Consumers Credit Union (CCU) is all about freedom of choice. You can borrow as little as $250 or as much as $500,000 and buy from any dealer. It also lets you skip up to two car payments each year.
What to know: CCU doesn’t require perfect credit to get a car loan, but your score must be at least 620. And since it’s a credit union, you have to become a member to get a loan. Although this is an extra step, it typically takes just a few minutes to apply online. (Everyone is welcome to join.)
What to do next: Read our expert Consumers Credit Union auto loan review.
Why we like it: LightStream auto loans don’t use your car as collateral like a traditional auto loan does. It doesn’t care what car you’re buying, so you don’t need to have a specific vehicle in mind yet to get a loan. LightStream also deposits your loan funds directly into your account when many lenders send your loan to the dealer.
What to know: LightStream requires good to excellent credit to qualify. It also tends to carry higher rates than traditional auto loans. Since it doesn’t use collateral, it can’t repossess your car if you fall behind on your payments. When a loan is riskier for a lender, it charges higher rates.
What to do next: Read our expert LightStream auto loan review.
How to compare auto loans with LendingTree
Getting an instant auto loan can be a great way to buy a car with less headache. But even if you’re in a hurry, set aside some time to shop around. Auto loans are like car insurance — you can’t be sure you’re getting the best rate unless you check with a few companies.
- Check your credit. Don’t worry — using LendingTree won’t hurt your credit. But we do need an idea of your score in order to personalize your loan offers. Get your credit score for free with LendingTree Spring.
- Compare rates. When you use LendingTree, you’re tapping into the nation’s biggest network of lenders, all for free. Answer a few questions. Get up to five offers. Save big.
- Get financed. Some of our lenders offer same-day auto loans, but not all. Be sure the lender you choose can give you money when you need it. When you’re ready to formally apply, we’ll be there every step of the way.
Tips for getting an instant auto loan with bad credit
Getting an instant bad credit auto loan can be hard. Many lenders require at least good credit to get a car loan, let alone to be approved instantly. When someone has bad credit, the lender usually has more to review on their credit report, tacking on extra time.
You can boost your chances of approval for an instant auto loan by using the strategies below:
Offer a bigger down payment
How much you offer as a car down payment can make or break approval. A down payment on a new car should be at least 20%, while a used car should be 10%. If you can afford more, even better.
A big down payment takes some of the lender’s risk and puts it onto you. If your car gets repossessed, you lose your down payment, too. The less risky you are for the lender, the more likely it is it will approve you.
Choose a cheaper car and a shorter loan term
This tip also boils down to reducing the lender’s risk. A cheaper car shrinks your loan amount. And the shorter your loan term (or, the amount of time you have to pay off your car), the less opportunity you have to fall behind.
Add a co-borrower
Adding a cosigner or co-borrower to your auto loan can help you get approved if the person you’re adding has excellent credit. If you don’t pay your loan back, the lender can go after your cosigner or co-borrower as well as you.
At the same time, including a second person to your loan might slow down the approval process. The lender will have two credit profiles to review, not just one.
You might be able to get an instant car loan at a buy here, pay here car lot. Still, avoid them unless you have no other choice. Buy here, pay here cars typically have very high interest rates. It might seem worth it now, but you might end up stuck owing more than what the car is worth.
Pros and cons of instant auto loans
Pros
- Negotiating power: Your instant auto loan will show the dealer exactly how much you can afford (opening the door to haggling).
- Less stress: You can get off the lot more quickly if you line up financing in advance.
- Can avoid upsells: You’ll know how much you can afford before going to the dealership, making it easier to turn down unnecessary add-ons.
Cons
- Bad credit could lengthen the application process: The lender has more to review, so the approval may not be “instant.”
- Fewer loan options: Not all lenders offer instant auto loans.
- Might find a scam: If you have bad credit and a lender offers you an instant auto loan, you might be facing a scammer (or at least, a loan with super high rates).
How to get a good deal on an instant auto loan
Improve your credit
A LendingTree study found that raising your credit score from fair to very good could save you more than $39,000 in loan interest over the life of your loans and credit accounts. Fair credit runs from 580 to 669, and very good from 740 to 799. Improving your credit isn’t easy, but even small changes like setting up autopay so you always make on-time payments can help.
Determine the car’s value
Overpaying for your car can have a snowball effect.
Imagine that a car is valued at $30,000, but the dealership has it “on sale” for $35,000. LendingTree’s auto loan calculator shows that this $5,000 markup could raise your monthly auto loan payment by an eye-popping $120 (assuming a 48-month term at 7% interest) and cost you almost $750 in extra interest charges.
Paying over the sticker price could also lead you to extend your loan term to get a lower monthly payment. Although this could provide some budgetary breathing room, you’ll pay more interest over the life of the loan.
If you’re also trading in your vehicle, determining your car’s value is especially important to avoid leaving money on the table. Kelley Blue Book and Edmunds both offer free valuation tools to help you understand the market value of your car based on factors like make, model, mileage and condition.
Negotiate the deal
Negotiating car prices — you either love it or you hate it. Negotiating with the dealer is usually necessary to get the best deal on your car. The more expensive the car, the more you’ll need to borrow, which will lead to more interest and maybe a longer loan term.
Watch for tacked-on dealer fees and extras like unnecessary warranties and appearance packages. Some dealers may offer these at the end of the car-buying process, when you’re tired and more likely to agree.
Consider alternatives
If you can’t get an instant auto loan, you may have other options, including:
Personal loans
In some cases, you can use a personal loan to buy a car. Personal loans can be harder to qualify for than auto loans, and rates will probably be higher. But personal loans don’t require a down payment, which might make higher rates worth it for some. As with auto lenders, be sure to compare personal loan lenders before signing on the dotted line.
Dealership loans
There are a few types of auto loans. One of those includes dealership financing. With a dealership loan, the dealer submits loan applications to their network of lenders on your behalf.
Some people prefer the convenience of dealership loans. But if the dealer does the shopping for you, you probably won’t get to review every offer. There’s no guarantee they’ll choose the one with the best financing terms for you.
Frequently asked questions
If you’re in a hurry to get a car loan, pay attention to both approval time (or how long it takes the bank to accept or deny your application) and its time to funding (how long it takes to send your loan after it approves you).
That said, your credit score isn’t the only thing lenders look at. Your payment history, how much debt you already have, how much you make per year and even how long you’ve lived at your address come into play.
If you’re having a hard time getting approved, consider adding a second person to your loan, making a bigger down payment or choosing a cheaper car.
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