Sure! Here’s a detailed guide on which banks give a 100% car loan in the USA, including all the key info you need to know before applying. Whether you’re buying a new or used vehicle and want to finance the entire purchase price, these banks and credit unions can help.
What Is a 100% Car Loan?
A 100% car loan allows you to finance the full cost of the vehicle—meaning you don’t have to make a down payment. Some lenders even offer 110% or 125% financing, which includes additional costs like taxes, registration, extended warranties, and other fees.
While convenient, these loans typically require good credit, steady income, and favorable debt-to-income ratios. Borrowers with strong profiles may benefit from competitive interest rates, but for those with lower credit scores, 100% financing may come with higher interest and stricter loan terms.
1. Bank of America – Best for All-In-One Financing
Bank of America is one of the few traditional banks that offers up to 110% financing on new and used cars. This means you can borrow not only the full price of the vehicle but also roll in extra costs like sales tax, registration fees, and even optional service contracts.
Their interest rates are among the most competitive in the industry, especially for borrowers with credit scores above 700. BoA also provides a seamless online loan application process, preapproval within minutes, and special rate discounts for existing customers. Their terms range from 12 to 75 months, and they partner with a broad network of franchised dealers.
2. Capital One – Best for Prequalification with No Impact on Credit
Capital One offers 100% financing through its Auto Navigator platform, which lets you get prequalified online without affecting your credit score. While not all borrowers will qualify for full financing, many with credit scores of 600 or higher do.
Capital One partners with a wide network of dealerships and provides transparency in terms of monthly payments, APRs, and loan lengths before you even step into a showroom. This is especially useful for first-time buyers or people who are still building credit. Their flexible terms and user-friendly tools make Capital One a top choice for full financing.
3. Navy Federal Credit Union – Best for Military Members and Families
Navy Federal is known for offering up to 125% financing, making it one of the most generous lenders in terms of loan-to-value ratio. This is especially beneficial for buyers who want to cover not just the car cost, but also registration, taxes, and insurance in the loan.
Eligible members include active-duty military, veterans, Department of Defense employees, and their families. Navy Federal’s APRs are highly competitive—often below the national average—and they offer terms up to 96 months. For those who qualify, Navy Federal is one of the best options for hassle-free, 100%+ car loans.
4. PenFed Credit Union – Best for High Loan-to-Value Financing
PenFed Credit Union also offers up to 125% financing on car loans, including both new and used vehicles. Membership is open to anyone willing to open a savings account with a $5 deposit. PenFed provides low APRs for qualified borrowers, along with flexible repayment terms that range from 36 to 84 months.
Their auto loans can be used for cars purchased from dealers, private parties, or even lease buyouts. PenFed is ideal for buyers looking to finance the entire cost of a vehicle plus additional expenses, and their online tools make application and preapproval simple and fast.
5. LightStream (Truist) – Best for Excellent Credit Borrowers
LightStream, a division of Truist Bank, offers unsecured car loans that can effectively cover 100% of the car’s cost. These loans don’t require you to use the car as collateral, making them different from traditional auto loans. To qualify, borrowers typically need excellent credit (usually 700+), stable income, and a strong credit history.
LightStream offers same-day funding, flexible terms from 24 to 84 months, and a Rate Beat Program, where they’ll beat any competitor’s rate by 0.10%. If you want flexibility, speed, and no restrictions on vehicle type or seller, LightStream is one of the best high-credit options available.
FAQs
Q1: Is it harder to qualify for a 100% car loan?
Yes. Since there’s no down payment, the lender assumes more risk. To qualify, you’ll generally need good to excellent credit, proof of stable income, and a low debt-to-income ratio. Lenders also check the vehicle’s value closely to avoid overfinancing.
Q2: Can I get a 100% car loan with bad credit?
It’s difficult, but not impossible. Some subprime lenders or Buy Here, Pay Here dealerships may offer full financing, but interest rates are much higher. Improving your credit or finding a co-signer can increase your chances.
Q3: What are the downsides of a 100% car loan?
Financing 100% (or more) means you start the loan underwater—you owe more than the car is worth. If the car is totaled or depreciates quickly, you could be stuck with a balance higher than its value. It also results in higher monthly payments and more interest paid over time.
Q4: Are there benefits to making a down payment anyway?
Absolutely. Even a small down payment reduces your loan amount, lowers your monthly payment, and could help you qualify for a better interest rate. It also protects you from negative equity.
Conclusion
If you’re looking for a 100% car loan in the U.S., you have several solid options depending on your financial profile. Banks like Bank of America and Capital One offer full financing with easy online tools. Credit unions like Navy Federal and PenFed go a step further, offering up to 125% financing—ideal if you need help covering taxes or fees. And if you have excellent credit, LightStream provides unmatched flexibility with unsecured loans.
While full financing can be tempting, it’s important to understand the long-term costs and make sure the monthly payments fit your budget. If possible, consider making a small down payment to reduce interest and avoid negative equity.