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Best Car Loans in Tucson, AZ

Aug. 26, 2019, 5:03 p.m.

Whether you’re buying a new car or opting for one with some miles on it, an auto loan lets you purchase one that costs more than you can afford by paying with cash. To ensure you’re getting a good deal, our partners at ConsumerAffairs researched the best car loans in Tucson to help find the lowest rates and most favorable terms.

Everyone deserves to make thoughtful, informed purchase decisions. The local guides provided on this website are free for consumers. KGUN 9 may receive compensation from our partners. Learn more.

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#1
RECOMMENDED
LightStream

Loans for practically anything!

#1 MOST POPULAR
LightStream
LightStream
Features
  • Apply online
  • Loans from $5,000 - $100,000
  • Deposits funds directly to your account
  • Available in Tucson
Read More
Location
Services available in
Tucson, AZ
No phone available
#2
Auto Approve
Auto Approve
Features
  • Individual loan consultants
  • Online loan calculator
  • Apply online
  • Available in Tucson
Read More
Location
Services available in
Tucson, AZ
(844) 946-7334
#3
LendingTree
LendingTree
Features
  • Read lender reviews from other consumers
  • Compare rates from multiple lenders
  • Available in Tucson
  • Online auto loan calculator
Read More
Location
Services available in
Tucson, AZ
(800) 555-8733
#4
myAutoloan.com
myAutoloan.com
Features
  • Online payment available
  • Find your perfect lender
  • Available in Tucson
  • Interest rate calculator online
Read More
Location
Services available in
Tucson, AZ
(214) 540-3350
#5
Capital One
Capital One
Features
  • Check your loan status online
  • Available in Tucson
  • Over 12,000 eligible dealers
  • Auto loan calculators available
Read More
Location
Services available in
Tucson, AZ
(800) 689-1789
#6
First Credit Union
First Credit Union
Features
  • Free use of AutoSmart tool
  • APR as low as 3.84%
  • Finance at the dealership with the CUDL program
  • Auto insurance, extended warranty, debt protection & GAP offered
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Location
340 S. Stone Ave.
Tucson, AZ 85701
(800) 732-6986
#7
Pyramid Federal Credit Union
Pyramid Federal Credit Union
Features
  • Extended service, credit life & disability contracts
  • GAP insurance offered
  • Flexible terms
  • Spanish-speaking representativese
Read More
Location
4491 N. Oracle Rd.
Tucson, AZ 85705
(520) 795-7950
SunWest Federal Credit Union
SunWest Federal Credit Union
Features
  • M-Th: 8:30am - 5:30pm
  • F: 8:30am - 6pm
  • Sat: 9am - 1pm
  • Closed Sun
  • mysunwest.com/Vehicle-Loans
Location
3615 N. Campbell Ave.
Tucson, AZ 85719
(602) 866-1129
Tucson Old Pueblo Credit Union
Tucson Old Pueblo Credit Union
Features
  • M-Th: 9am - 5pm
  • F: 9am - 6pm
  • Sat: 9am - 1pm
  • Closed Sun
  • topcu.org/loans/vehicle-loans
Location
2500 E. 22nd St.
Tucson, AZ 85713
(520) 881-6262
Hughes Federal Credit Union
Hughes Federal Credit Union
Features
  • M-Th: 9am - 5pm
  • F: 9am - 6pm
  • Sat: 9am - 1pm
  • Closed Sun
  • hughesfcu.org
Location
7970 N. Thornydale Rd.
Tucson, AZ 85741
(520) 794-8341
Vantage West Credit Union
Vantage West Credit Union
Features
  • M-Th: 9am - 5pm
  • F: 9am - 6pm
  • Sat: 9am - 1pm
  • Closed Sun
  • vantagewest.org/personal/buying-a-car
Location
801 E. Speedway Blvd.
Tucson, AZ 85719
(800) 888-7882
OneAZ Credit Union
OneAZ Credit Union
Features
  • M: 9am - 6pm
  • T-Th: 9am - 5pm
  • F: 9am - 6pm
  • Closed Sat and Sun
  • oneazcu.com/personal/loans/auto
Location
777 S. Alvernon Way
Tucson, AZ 85711
(844) 663-2928

How to get an auto loan in Tucson

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You have many options if you’re looking for an auto loan in Tucson. Car manufacturers, dealerships, banks, credit unions and online lenders all offer financing for purchasing vehicles. Although various lenders offer different terms and interest rates, most have the same basic qualifications to apply:

  • Proof of income: Having a steady source of income is essential and assures lenders that you can afford to pay back what you borrow. Pay stubs or bank statements are generally sufficient; however, some lenders call your employer for verification.
  • Proof of residence: Many lenders like to see proof of where you live. Besides showing stability, it also gives them an address where they can contact you if you miss a payment or default on your loan. A utility bill in your name generally confirms your address.
  • Proof of identity: If you’re working with a lender for the first time, you’ll need to provide proof of your identity to protect against fraud. Most state or government-issued photo IDs should be adequate.

Getting pre-approved for a car loan in Tucson

There are many benefits to shopping for a loan before stepping into a dealership. Being pre-approved for an auto loan means a lending institution has agreed to loan you money for a car before purchasing one.

Benefits to getting pre-approved for a loan:

  • Allows you to compare rates and terms: Setting aside time to apply for loans before shopping lets you see offers from multiple lenders and accept the one with the best rate. You may even be able to use offers to negotiate with companies and let them compete for your business.
  • Sets a budget for shopping: By getting pre-approved for a loan, you know the amount you can afford before shopping for a car. Knowing your budget lets you narrow your search.
  • Lets you negotiate for the car by total price: Many dealerships in Tucson negotiate with monthly payments amounts, which means you may end up paying more for the vehicle by taking out a longer loan with lower monthly payments. Negotiating for the total cost of the car often results in a better deal.
  • Reduces the stress of the car-buying experience: Negotiating with the dealer on a price of a car can be stressful, and arranging financing at the same time can make the experience overwhelming. Getting an auto loan before buying a car lets you separate the two decisions instead of doing them at the same time.

Qualifying for auto loans in Tucson

Your credit score is a vital factor when qualifying for a car loan. A good score is relative and depends on the scoring system used by the lending institution. The average credit score for borrowers purchasing a new car is 714, and the average for used car buyers is 655. The better your credit score, the lower your car loan rate is. The annual percentage rate (APR) for loans in Tucson ranges from 2.6 to 18.98 percent.

Comparing car loans in Tucson

When comparing loan offers, the most important thing to look at is the total cost of the loan. A low-interest loan that is paid off over an extended term could be much more expensive than a short-term loan at a slightly higher interest rate. Things that affect the total cost of the loan are:

  • APR: The loan’s APR is the interest of the loan plus any additional fees charged by the lending institution. Even a few points difference in the APR of a loan can add thousands of dollars over the term of the loan.
  • Loan terms: Car loans are typically paid off over a term of two to eight years. The average new auto loan is around 65 months, while the average used car loan is much shorter. Longer terms result in lower monthly payments but a higher total loan cost.
  • Down payment: Although borrowers in Tucson with bad credit may need to make a more substantial down payment, most car buyers can choose the amount they pay upfront. Making a more substantial down payment reduces the total cost of the car loan and may qualify you for lower interest rates.
  • Additional fees and costs: Don’t be surprised by additional expenses like documentation and origination fees. Some lenders may also charge a fee for paying off the loan before the end of the predetermined term. While not part of the loan, be sure to budget in costs that add to the total price of your car purchase, including insurance premiums and registration fees.
  • Getting a car loan with bad credit in Tucson

    While it’s more difficult to qualify for a car loan with bad credit, many online lenders specialize in working with borrowers who have difficulty getting loans from traditional lending institutions. If possible, taking the time to save up for a more substantial down payment improves your chance of being approved for a loan. You can also use this time to improve your credit score.

    If you’re unable to wait for your purchase, ask a relative or friend with strong credit to co-sign your loan. This lets you use their credit score to qualify and secure a better interest rate, but your co-signer is liable if you default on the loan.

LightStream

LightStream

A division of SunTrust Bank, LightStream offers low interest rates backed by their Rate Beat Program. The company’s flexible loan amounts allow you to receive the most competitive loan rate. Customers from Tucson appreciate the company’s easy application process, but some people complain about the company’s disappointing customer service and unfair credit decisions.

Auto Approve

Auto Approve

Auto Approve specializes in refinancing and assigns a personalized loan consultant to each of its customers to walk them through the process from start to finish. From cars and trucks to boats and ATVs, Auto Approve helps pay off your high-interest loan. Customers from Tucson praise the easy process and helpful agents.

LendingTree

LendingTree

LendingTree helps its customers compare auto loan rates and loan terms from multiple lenders for free. Customers can use helpful tools such as an online calculator to estimate car payments and what they can afford. Tucson car buyers appreciate the quick loan process and friendly customer service.

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myAutoloan.com

myAutoloan.com

myAutoloan.com allows customers to compare up to four offers in minutes after submitting an online request. Helpful tools such as an interest rate chart and payment calculator assist Tucson residents in the loan comparison process. Reviews from Tucson borrowers recommend the company for its excellent service and quick application process.

Capital One

Capital One

Capital One offers new and used auto financing, allowing customers to see if they pre-qualify without impacting their credit score. The company also provides auto refinancing. Handy online tools enable Tucson customers to estimate monthly payments on loan amounts to find what works best for them.

First Credit Union

First Credit Union

First Credit Union boasts flexible terms and competitive rates. The company offers new and used auto loans, refinancing and private party loans. Customers from Tucson appreciate the number of loan options but say trying to make payments or request policies that pertain to their loan is a frustrating experience.

Pyramid Federal Credit Union

Pyramid Federal Credit Union

With branches across Tucson, Pyramid Federal Credit Union offers flexible terms, gap insurance and extended service contracts. Borrowers can apply for an auto loan in minutes using the company’s online application. Customers from Tucson praise the company’s competitive interest rates, friendly staff and exceptional customer service.

Our partners independently research and analyze the companies mentioned in our guides and work with subject matter experts to add valuable information that helps consumers make smart purchase decisions. Our partners will not include companies on these guides that do not meet specific quality standards. The compensation we receive from our partners may impact how and where companies appear on our site, including the order in which they appear.

Our partners independently research companies, and use editorial discretion to award companies with special recognition (i.e. Best Value) based on their staff’s judgement or subject matter expert’s judgement. Our partners do this to help you identify companies that will meet your specific buying needs, and do not receive compensation for these designations.