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Find the Best Auto Loan Companies in Boston

When shopping for a new (or new-to-you) vehicle, most people need an auto loan; and with Massachusetts having an average car loan balance of $4,020, you may also be looking to refinance your current car loan. Aside from credit scores and loan amounts, there are several auto loan considerations to keep in mind. Boston.com has partnered with ConsumerAffairs to create this guide by comparing several Boston auto loan companies, including their loan types, terms and special features, to choose the five best lenders in Boston.

This content was created by a Boston.com partner. The editorial department of Boston.com had no role in writing, production, or display. Boston.com may be compensated for publishing this content and/or receive a commission on purchases of products or services described within the post.

Compare Auto Loan Companies in Boston

Comparing auto loans in Boston

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When looking for an auto loan, there are important factors to consider, starting with the auto loan type. Boston lenders offer loans for new and used vehicles, with different stipulations and terms for both. Additionally, you may be able to refinance your current Boston auto loan. This could help lower current monthly payments and lock in a lower interest rate.

Once you’ve decided what type of auto loan you need, you can start shopping around for a lender. Your credit score and desired term length are factors to consider. Some lenders offer financing for poor or no credit. Others may have certain credit requirements to qualify. Lending terms will vary based on your credit circumstances, but many offer longer terms for new vehicle purchases than used ones. There are some third-party companies that compare interest rates between several companies. This can help narrow down your search for a Boston lender.

Applying for car loans in Boston

When you’re ready to apply for an auto loan, there are some requirements and documentation you will need. Thankfully, most lenders offer an online application to help speed up the process. Many online applications include quick prequalification and pre-approval.

  • Prequalification: Prequalification can give you an idea of what you may be approved for. It is not a formal application, so you’ll still have to be approved. But, with basic financial information, lenders can give you an estimate of what may be loaned to you. Prequalification is typically a soft inquiry into your credit, which doesn’t affect your credit score.
  • Pre-approval Pre-approval is usually a lender-initiated, hard inquiry into your credit and can affect your credit score. Pre-approval is still an estimate and doesn’t guarantee auto loan financing. You’ll still go through an official application process.
  • Some lenders use pre-approval and prequalification interchangeably, so be sure to ask the lender you’re working with which option is being used.

    Once you’ve gotten pre-approval or prequalification, you’ll need to provide some documentation verifying your identity and financial situation. This includes:

  • Proof of identity: Driver’s license, identification card, passport, U.S. visa or other government-issued ID
  • Proof of income: Pay stubs, bank statements or W-2s
  • Credit and banking history: Social security number, name, address and date of birth for pulling credit
  • Proof of residence: Utility bills, mortgage statements, lease agreements, credit card or bank statements, property tax bill, homeowners or renters policy
  • Vehicle information: Purchase price, vehicle identification number (VIN), year, make and model
  • Current vehicle registration (trade-in): Title and registration
  • Proof of insurance: Have auto insurance set up before purchasing a vehicle
  • Down payment method: Cash, personal check, cashier’s check, debit card, credit card, pre-approved loan, personal loan
  • Many lenders will have online portals to upload documentation, which helps expedite the loan process. Above all, keep in mind your credit score and budget so you aren’t tempted to overpay during the car shopping process.

    Boston auto loan rates

    Term New car Used car
    36 months 0.40 to 4.50 percent 0.40 to 4.75 percent
    48 months 0.40 percent to 4.38 percent 0.40 to 5.09 percent
    60 months 0.40 to 4.75 percent 0.40 to 4.24 percent
    72 months 0.50 to 4.88 percent 0.50 to 4.75 percent
    *All rates accurate at the time of publishing

    Boston auto loans FAQ

    Can I get an auto loan with bad credit?
    Yes, there are lenders that offer special financing options for those with no or bad credit. Consider credit repair before taking out an auto loan to get a better interest rate.
    Is it better to finance a car through a bank or the dealership?
    Financing with a bank directly can help you get lower interest rates. But working with a dealership offers an all-in-one buying experience. Each has its own set of benefits.
    Can I get an auto loan for a private sale?
    Yes. You can get a loan when buying from a private individual.
    What is the average car payment in Boston?
    The average car payment for Massachusetts is $526 for new cars and $328 for used cars.

    Boston car loan company information

    Auto Credit Express

    Auto Credit Express (ACE) offers auto loan lender and dealer connections and specializes in rebuilding credit. It offers lender connections for all credit types, including bad, low or no credit and offers military auto loan connections. It helps with approvals with zero or $500 down. Additionally, ACE helps you determine if leasing or buying a vehicle is better. An online loan request form takes around three minutes to fill out. ACE serves Boston, other U.S. states and Canada.

    Auto Credit Express Learn More


    LendingTree is an online loan marketplace, meaning it shows you personalized auto loan offers from multiple lenders. It displays a breakdown of interest rates and terms for comparison. It also shows the starting APR interest rate, terms, loan amounts and what loan is best for. LendingTree hosts an online auto loan calculator and estimating tool and offers connections for auto loans and auto refinancing.


    Bank of America

    Bank of America offers auto loans and auto refinancing services. Fixed rates are as low as 5.04 percent for new cars and 5.14 percent for used on a 60-month term. Bank of America offers a 30-day rate lock after applying, and you can quickly apply online. You can search for authorized auto dealers that work with Bank of America financing before you go to the dealership. Members can qualify for rate discounts ranging from 0.35 to 0.50 percent. Bank of America has many branch locations throughout Boston.

    Bank of America


    Mass Auto Loans specializes in Boston bad credit auto loans. It works with a network of auto lenders and dealerships to offer poor and no-credit loans. It is a direct lender, so you can be approved before going to a dealership to purchase a vehicle. Financing rates start at 2.49 percent. Mass Auto Loans offers guaranteed loan approval. Auto loans cap at $30,000.


    City of Boston Credit Union

    City of Boston Credit Union serves Middlesex, Norfolk and Suffolk Counties. For new auto loans, interest rates start at 3.50 percent. Term options are available for up to 84 months on new vehicles and 60 months on used vehicles. Loan caps are $100,000 for new vehicles and $75,000 for used vehicles. Guaranteed Asset Protection (GAP) insurance coverage is available. GAP insurance is beneficial if the car is deemed a total loss and you still owe on the loan. City of Boston Credit Union offers pre-approval. It has nine Boston locations with its administrative offices at 455 West Broadway, South Boston, MA 02127.

    City of Boston Credit Union