Which Bank Gives Better Auto Loans, LightStream or PNC Bank?

When comparing auto loan options, LightStream and PNC Bank both stand out. LightStream offers the convenience of securing financing online, allowing you to handle everything from home, which is ideal for fast funding. PNC Bank, on the other hand, may require an in-person visit but provides more personalized support and a one-on-one experience.

Choosing between them depends on whether you prefer the speed and convenience of an online lender like LightStream or the personal touch and support of PNC Bank. Either way, it’s important to compare their rates and terms carefully to find the best deal for your auto loan.

LightStream vs. PNC Bank at a glance

LightStream auto loans

Unlike PNC Bank, LightStream offers unsecured auto loans, meaning the lender provides the funds directly to the borrower without involving the vehicle’s seller. This process speeds up funding but results in slightly higher interest rates.

Because LightStream loans are unsecured, they lack the protection that comes with using the vehicle as collateral. Consequently, LightStream’s minimum auto loan rates start at 7.24 percent, which is higher than the average rate of 5.64 percent for borrowers with a FICO score over 780.

Despite the higher rates, LightStream’s longer loan terms—up to 84 months—can reduce monthly payments. However, be aware that you may end up paying more in interest over the life of the loan.

Pros:

• Flexible Loan Terms: LightStream offers terms up to 84 months, providing more flexibility than PNC Bank.
• No Refinance Restrictions: There are no limitations on vehicle age or mileage for refinancing.
• Rate Beat Program: If you secure a lower rate elsewhere, LightStream will offer to beat it by 0.10 percent.

Cons:

• High Minimum Interest Rate: The starting APR of 7.24 percent is relatively high for auto loans.
• No Prequalification: LightStream does not offer prequalification, so you won’t know your rate without a hard credit check.
• High Minimum Loan Amount: The minimum loan amount with LightStream is $5,000.

PNC Bank auto loans

Based in Pittsburgh, Pennsylvania, PNC Bank is one of the largest financial institutions in the U.S., offering auto loans and vehicle financing both online and in person. Compared to LightStream, PNC Bank is competitive in terms of rates and provides additional car-buying services.

PNC offers secured auto loans, which generally results in a lower APR. While specific rates can vary, PNC lists its current rates on its website. For new cars purchased from a dealership, the APR starts at 6.69 percent. Rates for other types of auto loans, such as those for longer terms or private sellers, can be higher, sometimes exceeding LightStream’s maximum rate.

Pros:

• Total Auto Program: PNC’s Total Auto program helps borrowers with both shopping for and financing their next vehicle.
• Account-Holder Discounts: PNC account holders who set up automatic payments can receive a 0.25 percent APR discount.
• Extensive Branch Network: With approximately 2,600 branches across 29 states, PNC offers widespread access—though eligibility is limited to those living in these states.

Cons:

• Refinancing Restrictions: Vehicles must be under eight years old and have less than 80,000 miles to qualify for refinancing, which is stricter compared to many lenders’ thresholds.
• Funding via Check: PNC delivers loan funding by check rather than direct deposit.
• Dealership Requirement: To obtain a check-ready loan, borrowers must work with one of PNC’s approved franchise dealers.

How to choose between LightStream and PNC Bank

LightStream and PNC Bank are both strong choices for purchasing a new or used vehicle, refinancing, or buying out a leased vehicle.

Neither lender offers a prequalification process, so while you can get a general idea of your potential monthly payments from their online rates, you won’t know the exact loan terms until you apply.

Consider your preferences when choosing between them. If you’re comfortable handling financial transactions online and have a clear idea of the loan term you need, LightStream is a solid option. On the other hand, if you prefer more personalized support and a hands-on approach to financing, PNC Bank might offer a better experience.

Choose LightStream for fast funding

Fast funding is a significant advantage when buying a vehicle, especially for taking advantage of private sales or used car deals. It’s even more crucial when refinancing an auto loan to lower a steep monthly payment. Quick access to funds can help prevent missed payments.

LightStream offers rapid funding, with money available as soon as the day you apply and the option to sign all paperwork electronically. This streamlined process helps expedite your loan improvement.

In contrast, PNC Bank provides funding by mailing you a check overnight or allowing you to pick it up at a branch. To avoid unnecessary delays and paperwork, LightStream is the more efficient choice.

Choose PNC Bank for in-person support

For borrowers who appreciate a blend of convenience and personal interaction, PNC Bank offers a strong advantage. With branches located nationwide, you can start your loan application online and then visit a physical location if you need further assistance or wish to adjust your terms.

PNC also provides comprehensive customer support. You can initiate your application online and access help through their app or website for straightforward inquiries. If you prefer face-to-face interaction, PNC’s branch network is ready to assist you.

Compare more lenders before applying

If you prefer to consolidate your banking with one institution, PNC Bank is a great choice, especially if you already hold an account with them. On the other hand, LightStream is ideal if you value a fast, online-only process.

Keep in mind that neither lender offers prequalification. It’s wise to explore additional lenders to find the best terms you can qualify for.