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Find the Best Car Loans in Detroit, MI

Picking out a new car is exciting. Navigating through auto loan options is not. In the Motor City, choosing the right car loan is part of the equation to ensure a great buying experience. We researched the best car loans in Detroit to reduce the stress of buying a new vehicle.

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Auto Approve
Overall satisfaction rating
  • Individual loan consultants
  • Online loan calculator
  • Application approval in minutes
  • Available in Detroit

Helps people find refinancing loans and lease buyouts. Lets you add a vehicle warranty or gap insurance. Simple online application with no fees. Immediate loan decisions. Loan offers valid for 30 days. APRs as low as 5.24%.

Get a Quote (866) 563-8595 Read More
Overall satisfaction rating
  • Read lender reviews from other consumers
  • Compare rates from multiple lenders
  • Available in Detroit
  • Use the online auto loan calculator

Online marketplace for secured and unsecured loans. Free to compare rates and quotes from lenders for mortgages, car loans, personal loans and more. Minimum credit score requirements vary. Available nationwide.

Services available in
Detroit, MI
(800) 555-8733
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Overall satisfaction rating
  • Quick, easy online application
  • Fast money delivery
  • No prepayment penalties
  • Available in Detroit

Loan amounts from $1,000 to $40,000. Select from three- to five-year terms. APRs from 9.57% to 35.99%. Minimum credit score varies. Origination fee up to 8%. No prepayment fee.

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  • Online payment available
  • Lenders that fit your needs
  • Available in Detroit
  • Interest rate calculator online
Services available in
Detroit, MI
(214) 540-3350
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Capital One
  • Check your loan status online
  • Available in Detroit
  • Over 12,000 eligible dealers
  • Auto loan calculators available
Services available in
Detroit, MI
(800) 689-1789
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One Detroit Credit Union
  • M, T: 9am - 5pm
  • W: 10am - 5pm
  • Th, F: 9am - 5pm
  • Closed Sat and Sun
630 Howard St.
Detroit, MI 48226
(313) 965-8640
Michigan First Credit Union
  • M-Th: 8:30am - 5pm
  • F: 8:30am - 6pm
  • Closed Sat and Sun
  • michiganfirst.com
27000 Evergreen Rd.
Lathrup Village, MI 48076
(800) 664-3828
Diversified Members Credit Union
  • M-Th: 8:30am - 4:30pm
  • F: 8:30am - 6pm
  • Sat: 9am - 1pm
  • Closed Sun
1480 E. Jefferson Ave.
Detroit, MI 48207
(313) 568-5000
Direct Financial Credit Union
  • M-W, F: 8:30am - 4:30pm
  • Th: 8am - 5pm
  • Closed Sat and Sun
  • directfinancial.com
500 Lafayette E.
Detroit, MI 48226
(800) 966-8200

How to get an auto loan in Detroit

Detroit skyline

Detroit residents have plenty of auto loan options available. They’re available from banks, credit unions, dealerships and online lenders. Many people wait to arrange financing until after they choose a car, but getting a car loan before shopping has multiple advantages:

  • Sets a budget before shopping
  • Protects from dealer markups
  • Improves negotiation position
  • Makes it easier to avoid up-sales
  • Helps you get a better rate

By getting pre-approved from two to three lenders, you’ll be able to compare offers and choose one that works best for you.

Comparing auto loans in Detroit

Lenders in Detroit have different requirements to qualify for loans. In addition to credit score requirements, most lenders require long-term employment or consistent, dependable income. A hefty down payment or including a co-signer on your loan are options for improving your chance of being approved if you have poor credit.

Your credit score is the most significant factor in determining your annual percentage rate (APR). Detroit residents with excellent credit qualify for APRs between 3 and 5 percent, while those with poor credit receive loans with APRs in the low-to-mid teens.

Just a few points in the APR can make a significant difference. The table below shows the likely APR and monthly payments for a 60-month (five-year), $20,000 car loan based on credit score.

Monthly payments on a five-year loan for $20,000

Credit range Sample APR Monthly payment
720-850 3.60 $364.73
690-719 4.95 $376.97
660-689 7.02 $396.21
620-659 9.72 $422.19
590-619 14.06 $465.99
500-589 15.24 $478.32

Most car loans in Detroit are between three and seven years. Taking out longer loans lowers your monthly payments but increases the total cost of the loan because of additional accrued interest. The chart below shows the interest accrued on a $20,000 loan over multiple terms and with different APRs.

Interest accrued on $20,000 car loan

Sample APR 60-month 72-month 84-month
3.60 $1,883.88 $2,267.57 $2,655.56
4.95 $2,618.00 $3,157.72 $3,705.52
7.02 $3,772.76 $4,564.40 $5,372.13
9.72 $5,331.44 $6,474.33 $7,647.54
14.06 $7,959.24 $9718.55 $11,538.93
15.24 $8,699.31 $10,636.82 $12,645.18

The best way to get a low APR is to shop around and compare your best offers.

Fees and additional charges when purchasing a car in Detroit

When shopping for cars in Detroit, make sure your loan amount covers both the purchase price and any additional costs associated with the purchase, such as vehicle registration, car insurance and title transfer. Other possible charges and fees include:

  • Gap insurance: If you owe more on your vehicle than its value, gap insurance covers the difference. Lenders cannot require you to purchase gap insurance, but they can add it to your loan without notifying you.
  • Origination fees: Lenders charge origination fees to cover the cost of processing the loan. These can sometimes be negotiated down.
  • Document preparation fees: The dealership generally charges document fees to pay for preparing the car’s paperwork. In Michigan, document preparation fees are limited to 5 percent of the cash value of the vehicle, up to $210.
  • Finance markups: When you finance through a dealer, they can add a finance markup of up to 4 percent. For example, if you’re approved for an interest rate of 6.5 percent, the dealer can increase its profit by charging a markup rate of 8 percent.
  • Prepayment penalties: Paying off your loan early saves money on accrued interest, but lenders may charge you a penalty for doing so.

The Consumer Financial Protection Bureau offers handy tips and worksheets for finding the best auto loan and understanding which fines and fees are negotiable.

Michigan offers protections for consumers buying a used car through the state’s Auto Lemon Law and the ability to purchase the complete title and registration history for a vehicle for only $11.

Car Loans Reviews

Auto Approve

Auto Approve is perfect for anyone who has an existing auto loan with high rates or unfavorable terms. Auto Approve offers low-rate refinancing loans and a quick, simple and no-cost application process. Detroit residents praise the smooth process and say the company is willing to work with people with less-than-perfect credit.

Auto Approve Get a Quote (866) 563-8595


LendingTree lets you submit a single application for your loan. The company collects the best offers and lets you compare them. LendingTree also has lender reviews, a car deals database and insurance quotes. Detroit customers say the process is efficient and easy, but some warn it resulted in hard credit checks without their approval.



LendingClub saves borrowers nationwide an average of $80 per month when they use it to refinance their old auto loans. To qualify, you must have between $5,000 and $55,000 and at least 24 months of payments left on your loan, among other factors. Likewise, your vehicle has to be for personal use, have under 120,000 miles and be less than 11 years old.

LendingClub Get a Quote


This lender offers new and used auto loans, refinancing, a two-minute offer form, up to four offers at once and money in your account in as little as 24 hours. Detroit borrowers report great service, smooth refinancing transitions and agents who take the necessary time to make sure you understand the offers and the process.


Capital One

In addition to pre-approval, traditional loans and refinancing, Capital One has a great website, virtual services and educational materials. The company has a database of vehicles and dealers so you can find a car from the comfort of your home. Detroit customers say the company has competitive rates for those with good credit.

Capital One