LightStream vs. PNC Bank: Which offers better auto loans?

LightStream and PNC Bank are excellent options when comparing auto loans. Both provide new auto loans and options to refinance. Working with an online lender like Lightstream means you can secure financing from the comfort of your home, while PNC Bank may ask you to come in person but can boast more support.

This makes LightStream best for fast funding and PNC Bank a good fit if you want a one-on-one experience. Either way, you will need to carefully compare the differences to get the best rates on your auto loan.

LightStream vs. PNC Bank at a glance

LightStream auto loans

Best for borrowers with a strong credit history

Bankrate’s view

Unlike PNC Bank, LightStream offers its borrowers unsecured loans to purchase a vehicle. This means that the lender does not communicate with the vehicle’s seller and instead gives the money directly to the borrower. This expedites the process, leading to quicker funding.

The unsecured loan structure means slightly higher rates for borrowers. With typical auto loans, your vehicle is used as collateral, which protects the lender against losses. Without that added security, LightStream enforces higher-than-average minimum auto loan rates of 7.24 percent. For someone with a FICO score over 780, the current average auto loan rate for a new car is 5.64 percent.

LightStream’s lengthy loan terms may help lower your monthly payment even with higher rates. However, you will likely pay more in interest with a longer loan term, even if your monthly payments seem more affordable.

Pros

• Range of loan terms: LightStream offers loan terms of up to 84 months, giving you more flexibility than PNC Bank.
• No refinance restrictions: Since your loan is not secured by the vehicle, LightStream does not set any restrictions on vehicle age or mileage to refinance.
• Rate Beat program: If you get approved for a better interest rate on a different unsecured loan, LightStream will lower its offer by 0.10 percent.

Cons

• High minimum interest rate: LightStream’s starting APR of 7.24 percent is on the higher end for an auto loan.
• No prequalification: The prequalification process gives you a firm idea of expected rates without a hard credit check, a perk LightStream does not offer.
• High minimum loan amount: Borrowers must finance at least $5,000 when working with LightStream.

PNC Bank auto loans

Best for buying from a dealership

Bankrate’s view

Headquartered in Pittsburgh, Pennsylvania, PNC Bank is one of the largest financial institutions in the country. Like many banks, it offers auto loans and vehicle financing both online and in person. It stands up against LightStream for its car-buying service and competitive rates.

PNC offers secured auto loans, which typically translates to a lower APR. While it doesn’t provide a set range, PNC does have its rates listed on its website.

According to its option to check current rates, a new car from a dealership has an APR starting at 6.69 percent. Other auto loan options — such as loans with longer terms or from a private seller — tend to have higher starting rates, sometimes higher than the maximum rate LightStream offers.

Pros

• Total Auto program: The PNC Total Auto program assists borrowers in shopping and financing their next vehicle.
• Account-holder discounts: Those with a PNC account who sign off on automatic payments can benefit from a 0.25 percent APR discount.
• Large footprint: PNC has about 2,600 branches in 29 states. However, you must live in one of those states to qualify.

Cons

• Refinancing restrictions: Vehicles must be under eight years old and have under 80,000 miles to refinance. Most lenders set the thresholds higher — at 10 years and 100,000 miles.
• Funding delivered via check: Unlike many lenders that send funding via direct deposit, PNC funding is mailed as a check.
• Dealership requirement: Borrowers getting a check-ready loan must work with one of the PNC’s franchise dealers.

How to choose between LightStream and PNC Bank

LightStream and PNC Bank are solid options for purchasing a new or used vehicle, refinancing or buying out your leased vehicle.

Neither lender allows you to prequalify for a loan. So, while you can estimate your monthly payment using the rates listed online, you won’t get a complete look at your loan cost until you apply.

Beyond interest rates, consider what experience you most prefer. If you feel comfortable navigating finances online and are confident in what loan term fits your needs, LightStream is a good route. If you are more hesitant about financing and need extra support, PNC Bank will provide a much better experience.

Choose LightStream for fast funding

Fast funding is a perk when buying a vehicle, especially if you want to take advantage of a private sale or used car deal. But a quick payment timeline is even more important when refinancing.

Many borrowers choose to refinance an auto loan if the monthly payment is too steep. Fast funding could help you avoid missing a payment. LightStream funds are available as soon as the day you apply, and all paperwork can be signed electronically, taking you one step closer to an improved loan.

LightStream sends your payment directly to your account, while PNC Bank will overnight you a check or let you pick up the check at a branch. To avoid excess paper — and waiting — Lightstream is the better option.

Choose PNC Bank for in-person support

While the ease of online funding is helpful for the tech-savvy borrower, many prefer the comfort of in-person support. PNC Bank has branches nationwide where you can apply, adjust your terms or ask questions about your loan.

PNC also boasts the best of both worlds regarding customer service. Borrowers can begin their application online and head to a brick-and-mortar location if additional help is required. Customer care consultants are available daily on the bank app or site for simple questions.

Compare more lenders before applying

PNC Bank will be better if you already have an existing account and want to keep all your banking in one place. LightStream is better if you want a quicker, online-only experience.

Neither allows you to prequalify, however. Take the time to compare more lenders to see what terms you could qualify for.