Auto loan finance recommendations

[2quiker]

Looking for a new car but was wondering what financial institution people are using with the best interest rates?
I know there is a big mortgage refi but I don't see anything for auto loans.

Thanks.

[mervinj7]

Looking for a new car but was wondering what financial institution people are using with the best interest rates?
I know there is a big mortgage refi but I don't see anything for auto loans.

Thanks.

Last time, I got an auto loan, I used my local credit union. Rates were lower than the dealer at the time.

[TropikThunder]

Looking for a new car but was wondering what financial institution people are using with the best interest rates?
I know there is a big mortgage refi but I don't see anything for auto loans.

Thanks.

Sorry, this is Bogleheads. You’re only allowed to buy a gently used base Camry or Accord, and you can only do that every 10-15 years.

I’ve found the best finance rate is actually through the dealer a lot of the time since it’s part of the overall negotiation. For example, Mazda has a 0% up to 60 months special, Honda has 0.9% for 24 months, etc.

[whodidntante]

Some manufacturers are offering 0% loans on top of incentives. All things being equal, it would make sense to accept that offer.

My current auto loan was 1.89% for five years at a credit union. It wouldn't be too hard to find a similar deal today.

If you want to save money, though, focus on how much you're paying for the car. I drove hoopties purchased from private parties for most of my life, purchasing my first new car four years ago. You'll never drive that cheap and you can get some pretty nice cars like that. I might go back to my roots after this one.

[UnLearnYourself]

DCU has as low as 2.49%

[2quiker]

DCU has as low as 2.49%

Do you have any experience with them?

[2quiker]

Some manufacturers are offering 0% loans on top of incentives. All things being equal, it would make sense to accept that offer.

My current auto loan was 1.89% for five years at a credit union. It wouldn't be too hard to find a similar deal today.

If you want to save money, though, focus on how much you're paying for the car. I drove hoopties purchased from private parties for most of my life, purchasing my first new car four years ago. You'll never drive that cheap and you can get some pretty nice cars like that. I might go back to my roots after this one.

Damn 1.89% really. None of the credit unions here have anything below 3%

[jbuzolich]

Seems like any car company I've looked at in recent months is offering 0% financing. Subaru 0% for 63 months offered so far in May and June.

[whodidntante]

Some manufacturers are offering 0% loans on top of incentives. All things being equal, it would make sense to accept that offer.

My current auto loan was 1.89% for five years at a credit union. It wouldn't be too hard to find a similar deal today.

If you want to save money, though, focus on how much you're paying for the car. I drove hoopties purchased from private parties for most of my life, purchasing my first new car four years ago. You'll never drive that cheap and you can get some pretty nice cars like that. I might go back to my roots after this one.

Damn 1.89% really. None of the credit unions here have anything below 3%

It's possible that rates are lower where I live, but you can absolutely beat 3% no matter where you are. The first national credit union I checked, Penfed, has 2.14% for 3 years.

[UnLearnYourself]

DCU has as low as 2.49%

Do you have any experience with them?

Yes I have my loan with them. Good reputable credit union in MA.

[Perkunas]

Most lenders offer better rates for a "new" car vs a "used" car. What make/year are you looking to buy?

Some dealerships are offering 0% financing if you're buying a brand new vehicle.

If you're buying a used vehicle from a dealership, the dealer financing might still be as good/better than anything you'll find from a bank/CU. Used auto loan interest rates are not that great right now considering how low mortgage rates have dropped.

MyConsumer's Credit Union has some good rates if you open a checking account with them, somewhere around 2.69% for up to 60 months. My wife financed a car through MyConsumer's back in 2018 at 1.99% and since that time mortgage rates have dropped considerably but auto loan rates seem to have increased.

[jello_nailer]

I'm paying off a Lightstream 0.99% car loan.
It was so cheap I had to grab it. Want to pay it off but it's free money. Try them, not sure what rates are now.

[02nz]

Financially it makes sense to take 0% financing if there's not a cash incentive offered in lieu of it. But it sounds like you need the financing to be able to afford the car, which means you really can't afford the car.

[peetsperk]

We’re weird, but we don’t borrow money to purchase a depreciating asset. Sorry.

[whodidntante]

We’re weird, but we don’t borrow money to purchase a depreciating asset. Sorry.

Is that because you prefer paying a higher rate to borrow money to purchase an asset that only depreciates sometimes, and then saving up lots of cash while carrying that more expensive debt, then paying it all towards the car instead of the more expensive debt? And if things go wrong, that you would you rather lose your house than your car?

[RocketShipTech]

We’re weird, but we don’t borrow money to purchase a depreciating asset. Sorry.

You’re right, that is weird.

[fishnhunt]

All of the major car brand dealers are offering 0% financing right now for new vehicles. Local car dealers in my area were offering 0% 36 month financing on all used cars for two weeks at the end of May. DW and I were planning on buying a SUV this summer, plan was to pay cash for something around $13k. We decided to spend $19.5k and bought one slightly used with much lower miles due to the 0% financing.

[jbmitt]

We refinanced our 2020 model year vehicle with PenFed. I was happy with the process. It looks like they also offer a new car purchasing program with TrueCar that can further reduce their rates.

[wfrobinette]

I'm paying of a Lightstream 0.99% car loan.
It was so cheap I had to grab it. Want to pay it off but it's free money. Try them, not sure what rates are now.

Lightstream is great. Plus you hold the title.

[jello_nailer]

Correct I forgot about that, no liens.
It's basically a signature loan. I can't imagine how the "honor system" works when you simply tell them what the loan is for and there are different rates for different uses. Seems like you could simply lie to get the lowest rate and use the "car loan" for that "home improvement loan".