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Charles Schwab auto loan alternatives
Compare other lenders with competitive rates, high loan amounts and more.
Charles Schwab has little involvement in the lending market, but you still have options when you’re looking to finance a car. There are several other banks out there that offer auto loans, as well as a slew of online lenders.
Why doesn’t Charles Schwab offer auto loans?
Charles Schwab’s main focus is on banking and investing, so its loan options are few. And what it does have are secured by your investment portfolio — not ideal for financing a car.
3 alternatives to Charles Schwab auto loans
If you’re looking for an auto loan specifically from a bank, Bank of America and Capital One may be able to help. And if you want to see what sorts of rates and terms you might qualify for, LendingTree is a good place to compare multiple lenders at once.
Best for financing an expensive car: Bank of America
Bank of America offers auto loans up to $100,000 for both new and used cars from a dealership or a private seller — rare for a bank. Its APRs start low at just 3.54%, and you could also knock up to 0.5% off your rate with a qualifying Bank of America account.
If you’re prequalified for an auto loan through Bank of America, you have 30 days to shop. And if you already have a car loan that you’re paying off, Bank of America also offers refinancing that may be able to help you score better rates or terms.
- How much you can borrow.
- APRs. Starting from 3.54%
- Terms. Varies
- Eligibility requirements. Ages 18+, US citizen or permanent resident, buying eligible vehicle
Best for competitive APRs: Capital One
Capital One also offers competitive financing for both new and used cars as well as refinancing for existing auto loans. While you’re limited to borrowing just $40,000, its APRs start slightly lower than Bank of America’s at just 3.24% (As low as) for new cars.
Like many other lenders, you’ll have 30 days to shop after you get prequalified. But keep in mind you’ll be limited to purchasing a car through one of the 12,000 dealers in its network. You can find one by using Capital One’s Auto Navigator tool on its website.
- How much you can borrow.
- APRs. 3.24% (As low as)
- Terms. 3 to 6 years
- Eligibility requirements. Valid street address, existing Capital One account in good standing, buying 2009 model or newer with less than 120,000 miles
Best for comparing options: LendingTree
LendingTree allows you to compare offers from multiple car loan providers by filling out just one online form — saving you time and giving you an idea of what rates and terms you may be eligible for. The lenders in its network offer both new and used auto loans, as well as refinancing and lease buyouts, with low starting rates and terms of up to 7 years.
Like Bank of America, you can purchase a car from both a dealership or private seller. However, former customers have complained about fielding phone calls and emails from its network of lenders — even after taking out a loan.
- How much you can borrow. Varies by lender
- APRs. 3.09%
- Terms. 1 to 7 years
- Eligibility requirements. 18+ years old, good to excellent credit, US citizen
Does Charles Schwab offer similar loans?
Not really. While Charles Schwab offers two secured lines of credit that are backed by your investment portfolio, this might not be the best option for purchasing a car. Especially if you’d rather use your car as collateral rather than your stocks, bonds and other investments.
Compare more auto loan providers
Charles Schwab may not offer auto loans, but that doesn’t mean you’re out of luck. Whether you’re interested in buying an expensive car or securing a competitive rate — or both — there are other banks and car loan providers that may be able to help.
You can compare other lenders and read more about how financing works with our guide to car loans.
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