Overview of LightStream Auto Loans
LightStream offers unsecured personal loans that can be used for financing vehicle purchases, making it a bit different than a traditional auto lender.
Key info about LightStream auto loans:
- Loan amounts from $5,000 up to $100,000
- Terms ranging from 24 to 84 months (2 to 7 years)
- Minimum APRs starting at 7.49% with autopay discount
- Funding available as soon as the same day
As their loans are unsecured by the car itself, LightStream’s rates tend to start higher than typical secured auto loan rates. But they provide outstanding speed in application and funding.
Pros of Getting an Auto Loan with LightStream
Here are some of the biggest selling points of using LightStream for your next auto loan:
Extremely Fast Funding
LightStream is unmatched when it comes to fast funding timelines. Approved loans can hit your bank account the exact same day you apply in most cases.
Flexible Terms Up to 84 Months
Stretching your repayment timeline up to 7 years helps keep monthly payments affordable even when financing larger amounts.
Rate Beat Program
If approved elsewhere at a lower rate, LightStream will beat competing offers by 0.10% – ensuring you get their lowest rate.
No Fees or Prepayment Penalties
Zero fees for origination, application, or paying your loan off early provide nice cost savings.
READ ALSO: RateGenius Auto Loans in 2024: Refinancing Review
Cons of LightStream Auto Loans to Consider
However, there are also some potential limitations to weigh:
Rates Start Higher Than Average
Due to their unsecured nature, interest rates begin above typical auto loan averages, even for those with great credit.
High Minimum Loan Amounts
The $5,000 minimum loan won’t work for very low-budget used car buyers or those with small remaining loan balances.
No Phone Customer Service
Questions and support requests can only be handled through online chat or messaging, which some may find inconvenient.
How LightStream Compares to Other Auto Lenders
LightStream is quite different than traditional auto financing companies. But here is how it stacks up to a couple key rivals specifically:
Compared to Credit Direct:
- Credit Direct serves fewer states but has lower minimum loan sizes
- Only LightStream offers lease buyouts and refinancing options
Compared to PNC Bank:
- PNC Bank provides an extensive branch network that LightStream lacks
- But LightStream offers better rates for non-perfect credit applicants
So while not flawless, LightStream fills an interesting niche with their unsecured setup and super fast funding capabilities.
What We Like About LightStream Auto Loans
Here’s a closer look at some of LightStream’s best features:
Streamlined Online Experience
The 100% digital application experience is fast and simple through desktop or mobile.
Deposits Made as Soon as The Same Day
Once approved, your money can be sent to your bank within just a few hours in most cases.
0.50% Rate Discount For Autopay
Opting into automated payments from your bank account scores a nice interest rate reduction.
Multiple Loan Purpose Options
Beyond just purchase financing, loans work for refinancing, lease buyouts and more.
Rate Beat Guarantee
If you find a better rate elsewhere, LightStream will beat competing offers by 0.10%.
What We Don’t Like About LightStream
To provide full transparency, here are disadvantages to note as well:
No Phone Support Offered
Communicating issues over chat or email may feel slow versus phone conversations.
High 7.49% Minimum APR
Approved rates don’t go much below average for unsecured personal loans.
Hard Credit Check Required to Apply
No prequalification means each application causes an inquiry.
Limited to Online Interactions
Those who prefer to apply or chat in person won’t find that here.
LightStream’s Eligibility and Qualification Factors
LightStream doesn’t publish precise credit score requirements or approval odds. But here is what they evaluate in applications:
- Your credit history length
- Mix of credit types in your profile
- Payment history and track record
- Debt-to-income ratios
- Proof of income and ability to repay
Generally you’ll need good to excellent credit (scores above 670) for the best rates LightStream offers. They also like to see long credit history and responsible use of financing.
Types of Auto Loans Offered by LightStream
The flexibility of LightStream’s unsecured personal loans allow you to use financing for:
New Car Purchases
- Amounts from $5,000 to $100,000
- Terms from 24 to 84 months
Used Car Purchases
- Amounts from $5,000 to $100,000
- Terms from 24 to 84 months
Refinancing Existing Loans
- Amounts from $5,000 to $100,000
- Terms from 24 to 84 months
Lease Buyout Financing
- Amounts from $5,000 to $100,000
- Terms from 24 to 84 months
LightStream also finances private party sales, classic cars, RVs, boats, motorcycles, and more.
Interest Rates Offered by LightStream
Specific rates you qualify for depend on creditworthiness, requested loan amount, and term length.
But in general, here are the rate ranges currently advertised:
New Cars
- Fixed rates from 7.49% to 15.94% APR with autopay discount
- As low as 4.99% APR for 2021/2022 models
Used Cars
- Fixed rates from 7.49% to 15.94% APR with autopay discount
- As low as 6.49% for 2021/2022 models
Refinancing
- Fixed rates from 7.49% to 16.19% APR with autopay discount
Lease Buyouts
- Fixed rates from 7.74% to 16.19% APR with autopay discount
Rates are fixed for the full repayment term once your loan closes.
How to Apply for an Auto Loan with LightStream
Here are the steps to get financing from LightStream:
- Check Loan Options: Review loan types and details on LightStream’s website to choose what works best.
- Complete Application: Fill out the online application form providing personal, income, and employment verification details.
- Get a Decision: LightStream evaluates your credit and eligibility to make a near instant loan decision.
- Accept Your Offer: Review loan documents online and electronically sign to accept the loan.
- Receive Your Funds: Approved funds get wired the same day directly into your bank account in most cases.
Once approved, borrowers have 30 days to accept the loan offer before it expires.
READ ALSO: CarMax: 2024 Auto Loan Review
Fees, Penalties, and Fine Print to Know
One nice perk from LightStream is they do not charge borrowers any specific loan fees, including:
- $0 origination fees
- $0 application fees
- $0 prepayment penalties
But like any lender, you need to avoid the penalties that come with late payments, which damage your credit. Carefully review repayment terms before signing your loan.
How to Get Support From LightStream
Contact options for customer assistance include:
Online Form Submissions
- Get support 24/7 by completing inquiry forms
Email Support
- Email questions to customercare@lightstream.com
Chat Online
- Chat live with a support rep Monday-Saturday
Phone support is unfortunately not available. But online and email options provide decent customer care access.
To Recap: Who Are LightStream Loans Best For?
In summary, LightStream unsecured installment loans shine for borrowers meeting the right criteria, such as:
Those in Urgent Need of Quick Funds
The swift approval and funding timelines help when you just need cash deposited ASAP.
Financing Borrowers or Older Used Cars
Loan minimums as low as $5,000 allow covering cheaper or older vehicle purchases.
Drivers Planning Lengthy Repayment Strategies
Terms up to 84 months stretch budgets in smaller more digestible payment amounts.
While they may not beat every credit union rate, LightStream does fill a special niche no traditional lender can match. Their unique unsecured approach paired with near instant funding makes them tough to beat for speed and convenience.
Frequently Asked Questions About LightStream Auto Financing
Below find answers to some commonly asked questions regarding LightStream auto loans.
Can I buy a car from a private party with LightStream financing?
Yes, LightStream’s unsecured personal loans can be used the same way toward private party auto purchases. Simply have the seller provide their bank/routing details during the application process.
Do I need a down payment to get funded?
No down payment is required in most cases. But borrowers with higher credit and income amounts tend to qualify for better rates and terms from LightStream. Putting some cash down if possible is wise.
How long after approval until I get loan funds deposited?
LightStream prides itself on same day funding in most situations if your application is submitted and signed within business hours. At longest, deposits take 1-3 days after completing your loan acceptance.
Is there any benefit to linking the loan to my car?
No direct benefit as LightStream loans are unsecured without any car lien. But ensuring you have sufficient auto insurance coverage before driving the car off the lot is highly recommended no matter what.
More About LightStream’s Parent Company Truist
Headquartered in Charlotte, North Carolina, Truist Financial Corporation was formed in 2019 after the merger of SunTrust and BB&T. It now ranks as one of the largest commercial banking organizations in the US.
Truist conducts lending and servicing activities under multiple brands like LightStream, SunTrust, and BB&T. Experienced auto borrowers may recall taking loans with SunTrust, but today Truist directs auto lending toward its LightStream brand and unsecured installment loan offerings.
With assets exceeding half a trillion dollars as of late 2022, Truist remains well-capitalized and positioned to satisfy funding demand across both consumer and commercial lending markets. Expect them to continue growing the unique LightStream products that set them apart from traditional financing approaches.
In another related article, Gravity Lending 2024 Auto Loan Review: Rates, Terms & Requirements
