When shopping for financing to purchase or refinance a car, online lenders like LightStream and traditional banks such as PNC emerge as top contenders. Weighing the pros and cons around rates, fees, eligibility, and application processes becomes key. This guide compares what both lenders offer to help identify the best auto loan provider for your needs.
Introducing LightStream and PNC
Lightstream and PNC constitute two well-known lending names providing consumer access to financing for buying and refinancing vehicles. Here is some background on each company:
LightStream
- Online division of Truist Bank launched in 2004
- Specializes solely in unsecured installment lending
- Headquartered in Charlotte, NC
- No physical branch locations
- All applications and support online/phone
PNC Bank
- Brick-and-mortar bank holding company founded in 1852
- Traditional banking products also include wealth management
- Headquartered in Pittsburgh, PA
- Operates over 2,600 branch locations across 29 states
- Combination of online and in-person service
Now that you understand the structures behind both companies, we can dive deeper into contrasting their actual auto lending offerings.
READ ALSO: How to Get the Best Auto Loan Rate and Save Thousands
New and Used Car Loans
Both lenders allow borrowers to finance purchasing either new or used vehicles with some small differences:
Loan Amounts
Lightstream – $5,000 minimum up to $100,000 maximum
PNC – $7,500 to $100,000
PNC Bank enforces higher minimum borrowing requirements. But those with great credit can access up to six-figure amounts from LightStream for large purchases.
Interest Rates and Terms
| Lender | Rates | Terms |
| Lightstream | 7.49%-16.19% | 24-84 months |
| PNC | 6.84%-18.14% | 12-72 months |
PNC edges out Lightstream slightly on rate minimums but cannot match the lengthy borrowing terms. Both incentivize autopay enrollment dropping rates by 0.5% and 0.25% respectively.
Disbursement Methods
Lightstream issues funds directly into approved applicant bank accounts electronically. Meanwhile, PNC Bank sends loan proceeds via checks, either mailed or picked up in-branch.
Car Refinancing Loans
Refinancing existing car loans under better terms represents another common borrowing need both lenders accommodate:
Refinancing Requirements
Lightstream – None regarding age, mileage, etc.
PNC – Car 8 years old or less and under 80,000 miles
Because Lightstream finances vehicles via unsecured lending, no restrictions exist on what kinds of automobiles get approved. PNC ties loans directly to cars as collateral – imposing mileage and age limits in the process.
Documentation Needed
Lightstream – Bank account access for direct deposit
PNC – Recent pay stub + W-2 tax forms
Unsecured lending equates less required paperwork for Lightstream applicants during the application process. PNC’s secured loans mandate deeper financial verification.
Getting Started and Applying
With basics on what loan offerings both providers put forward explained, now examine what initial steps and application procedures involve:
Pre-qualification Ability
No prequalification pathway exists with Lightstream currently. Prequalification helps give estimates on potential approval chances and rates beforehand.
PNC Bank does provide a soft-pull prequalification tool signaling likely eligibility and terms.
Documentation Required
Lightstream – Pay stubs, W-2s, bank statements
PNC – Tax returns, debt balances, employer address
PNC’s secured lending lean means their documentation requests dig deeper into applicant finances and employment.
Application Platforms
Lightstream – 100% online application
PNC – Choice of online, in-branch, over phone
Those desiring a purely digital application process fit best with Lightstream. PNC allows starting online but visiting physical branches for assistance an option too.
Disbursement Timelines
Both send approved loan funding quickly:
- Lightstream – As soon as same-day
- PNC – Within 1-2 business days
So whether applying digitally or in-person, access to financing emerges rapidly from both companies following approvals.
How to Choose LightStream or PNC
With those comparisons in mind, consider a few final recommendations on which lender likely serves specific financing situations better:
Choosing LightStream
- Seeking unsecured loan options
- Wanting over 60-month repayment term lengths
- Valuing fast electronic direct deposits
- No nearby PNC Bank branch locations
Choosing PNC Bank
- Prefer secured car collateralized lending
- Desire pre-qualification assessment
- Need under 80k miles and under 8 years old to refinance
- Have an existing PNC checking/savings account
Neither lender gets considered higher or lower quality overall – just each better suits certain auto financing applicant preferences over the other.
READ ALSO: How to Get Car Insurance Quotes: A 4-Step Guide
To Recap
LightStream and PNC Bank constitute two reputable lenders providing quality auto financing products to prequalified consumers. LightStream works better catering those wanting unsecured options with flexible terms and purely digital processes. PNC offers well-rounded borrowing with the added benefit of physical locations for hands-on help.
No one-size-fits-all lending solution gets recommended universally. Compare personalized rates and weigh the pros and cons most critical where you sit before jumping applications. Empower yourself financially by knowing what kind of loans deserve your business.
Frequently Asked Questions
Further clarify differences between Lightsteam and PNC answering additional questions:
Does credit score impact rates offered at Lightstream or PNC?
Yes. Those with exceptional scores access the lowest rate ranges from each. Subprime borrowers see upper ceilings advertised. Checking your exact rates prequalification or preapproval becomes vital.
What fees might get charged on car loans?
Lightstream issues no lender fees. PNC does not specify exact costs but typical bank loan origination fees apply unless you join their “Delivered Rewards” program. Read fine print!
Can lease buyouts or classic/antique car loans get financed?
Lightstream approves lending money towards buying out leased vehicles or financing modern classic and antique automobile purchases. PNC focuses solely on routine passenger vehicles under 8 years old.
What customer support avenues exist for borrowers?
Lightstream – Phone and email available. PNC – Phone, email, online chat, and in-person branch assistance.
Can co-borrowers jointly apply for added approval odds?
Yes. Both lenders allow submitting applications along with another co-borrower to combine incomes and credit histories if needed to meet eligibility requirements. Having a co-signer alternatively improves the chances for authorization as well.
In another related article, How to Get an Auto Loan Online: A Complete Guide
