Auto Loans

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Take advantage of your car's equity with a cash out refinance.

  • 95 Years in Business
  • Over 10 million customers served
  • 93% Customer Satisfaction Rate*
* Based on a 3rd party survey of customers that recently closed loans with OneMain.

Auto loans
from $1,500 to $25,000

1. Apply

Our online application is easy and secure

2. Sign

Once approved, sign your loan documents

3. Done!

Receive your personal loan funds from your local branch

OneMain has made my recent car purchase a reality. With great customer service and an easy application process, this is by far the best car buying experience I've ever had. +

Roberto A.

I need a new vehicle that had four wheel drive so I could get to work at the coal mine I work at. I really wasn't making enough to pay a ton on a vehicle so I heard about OneMain. I went to them and they gave me a good loan to help me get things started. +

Beau A.

+ These customer testimonials reflect individuals’ personal experiences, so you may not have the same results.

Find the right auto loan product for you.

Purchase Finance

Use a OneMain auto loan to buy a new or used vehicle.

Refinance Balance Only

Refinance the current balance on your auto loan with OneMain.

Cash Out Refinance

Refinance your current auto loan and borrow additional funds.

Auto Loans 101

What things should you consider when shopping for an auto loan?

There are three basic components to negotiate on every auto loan:

Term length: The term length is the amount of time it takes to completely repay the loan with interest.

In general, longer term lengths correspond to higher interest rates.

Despite the higher rates, longer loan terms usually have lower monthly payments.

Interest rate: Interest rates represent the amount of interest you have to pay over a specified period of time. Interest rates for auto loans can vary widely, depending on your credit score and other factors. A higher credit score may help you obtain a lower interest rate.

However, lower interest rates do not necessarily reflect lower monthly payments, because the monthly payment amount also depends on the repayment term length.

It is important to review the interest rate carefully. Some auto loan interest rates start with low for the first year, then spike after the special introductory period ends.

If your credit score is lower, you may not qualify for the best interest rate. However, if you can improve your score, you may consider an auto refinance loan for a better rate in the future.

Down payment: The down payment is the percentage of the vehicle price that is paid to the dealer up front.

Down payments can be as low as zero percent. However, the usual recommended down payment is 20 percent. This is because cars rapidly lose value – typically decreasing in value by about 20 percent during the first year of ownership.

A down payment of at least 20 percent may also help prevent an auto loan from going upside down.

What does being “upside down” on an auto loan mean? When a car is worth less than the debt owed on it, the car is said to be “upside down.” A vehicle that is upside down is harder to trade in or refinance than a vehicle that is not upside down.

The above information ("Content") is intended for general information purposes and is not specifically tailored to OneMain or its products. This Content is not a substitute for a consultation and review of your individual financial needs by a certified financial planner. The Content is not intended as legal advice and should not be used as a substitute for the advice of competent legal counsel.

What do lenders consider before offering a loan?

In addition to credit history and credit score, auto loan lenders also use the following ratios when determining the terms of an auto loan.

Debt–to-income ratio (DTI): the debt-to-income ratio tells lenders how much additional debt you can take on given your current income and financial obligations.

The ratio is calculated by dividing total monthly debt by the borrower's gross monthly income (your income before taxes and fees).

Total monthly debt


Gross monthly income

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Debt-to-income ratio

Total monthly debt includes credit card payments, installment loan payments, student loans, and housing expenses, such as mortgage payments or rent. Expenses like food, utilities, and entertainment are not included.

Many lenders prefer customers with a DTI of less than 36 percent. For borrowers with DTIs above that level, interest rates tend to be much higher.

Payment-to-income ratio (PTI): the payment-to-income ratio is calculated by dividing the expected monthly payment on the car by monthly gross income.

Monthly payment


Gross monthly income

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Payment-to-income ratio

Like the DTI, lenders use this ratio to determine how capable a borrower is of repaying the loan, given the borrower’s current income level. Ideally, your PTI should not be higher than 10 percent.

Loan–to-value ratio (LTV): the loan-to-value ratio is calculated by dividing the loan amount by the value of the vehicle at the time of purchase.

Loan amount


Venicle

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Loan-to-value ratio

The lender decides whether to use the manufacturer's suggested retail price (MSRP), Kelley Blue Book, or the National Automobile Dealers Association (NADA) handbook in order to determine the value of the car.

Ideally, the loan-to-value ratio should be small. Making a large down payment will greatly lower the ratio.

Because a car rapidly loses it value, having a smaller LTV will prevent you from owing more than your car is worth.

However, initial LTVs of more than 100 percent are not uncommon. The funds can be used to pay additional costs such as sales tax or manufacturer fees. Depending on the loan terms, a car may be upside down for just a short period if the debt is reduced faster than the car loses its value.

The above information ("Content") is intended for general information purposes and is not specifically tailored to OneMain or its products. This Content is not a substitute for a consultation and review of your individual financial needs by a certified financial planner. The Content is not intended as legal advice and should not be used as a substitute for the advice of competent legal counsel.

What are direct and indirect auto loans?

There are two types of financing options for cars:

Direct loan: Banks or other financial institutions (such as a credit union or personal loan company) provide direct loans. Some of the characteristics of a direct loan include:

  • The financial institution, rather than a car dealership, determines the loan amount and interest rate.
  • The lender gives the borrower a voucher or blank check valued at the loan amount upon approval. This provides the buyer with flexibility if they have not decided which car to purchase.
  • There is greater control for the buyer throughout the purchase process. The buyer already has secured a financing option before going to the dealership and may be less vulnerable to price manipulation by the car salesperson.

Indirect loan: An indirect auto loan is one that you get through the dealer, who arranges the deal with a financial institution on your behalf. Characteristics of indirect loans include:

  • The dealer attempts to find a loan for you once you select a vehicle.
  • The dealer is in charge of the loan search and application process, which may make things more convenient for the buyer.
  • You may get access to dealer offers, such as cash rebates.

Some buyers who plan to use indirect financing also get approval for a direct loan. That way, the buyer can rely on the direct loan if the terms offered by the dealership ultimately turn out to be unfavorable.

The above information ("Content") is intended for general information purposes and is not specifically tailored to OneMain or its products. This Content is not a substitute for a consultation and review of your individual financial needs by a certified financial planner. The Content is not intended as legal advice and should not be used as a substitute for the advice of competent legal counsel.

What is auto refinancing?

Auto refinancing is the replacement of an existing auto loan with a loan with different terms, often with the goal of lower interest rates or lower monthly payments. If your credit score has improved since your initial purchase, you may qualify for a loan with better terms.

However, the terms of the loan do not need to be negotiated solely with the original lender. Many auto refinance loans come from separate financial institutions, such as banks, credit unions, or consumer lending companies.

Car refinance loans often have some fees, with the most common being the title transfer fee. This is a charge for transferring the title of the vehicle from the initial creditor to the new loan provider.

Why refinance?

A car refinance loan is most advantageous when the new loan terms offer a lower interest rate without extending the length of the repayment period.

If you have improved your credit score since the original purchase, a refinance loan with a lower rate can save you thousands of dollars in the long term.

Some lenders also offer cash-out refinance loans. Essentially, this is an auto refinance loan and a personal loan combined. A portion of the funds is used to pay off the original loan, while the rest can be used for any other purpose. In order to qualify for a cash-out refinance loan, you typically must not owe more on the car than it is worth.

When to refinance

Typically, it is better to refinance sooner rather than later. Because of how payments and interest work, your first few loan payments are mostly applied toward the interest. With high interest rates and long repayment lengths, you will not reduce the principal balance of your auto loan very much in the first months after the purchase.

Therefore, if you raised your credit score soon after the purchase of a car, you may consider an auto refinance loan to save money.

In addition, because cars lose value relatively quickly, securing an auto refinance loan is easier when the car has been purchased recently.

For example, if you have an outstanding principal balance of $10,000 on your auto loan, and the car is only worth $8,000, it would be difficult to find a lending institution that would extend the full $10,000 to refinance your existing auto loan, even with a high interest rate. Even if the bank sells the car, it would likely still be unable to recoup the loss.

The above information ("Content") is intended for general information purposes and is not specifically tailored to OneMain or its products. This Content is not a substitute for a consultation and review of your individual financial needs by a certified financial planner. The Content is not intended as legal advice and should not be used as a substitute for the advice of competent legal counsel.