Where to find the best rates on a longer auto loan?

[El Dusty]

For anyone considering financing or re-financing I wanted to leave my reviews on my experience with service & Lenders I used.

When I originally purchased my Runner my previous vehicle had become pretty unreliable, expensive to maintain and a new job opened the door for me getting a 2015 after three years of drooling over the 5th gens. Without great credit or any existing auto credit score I took a relatively high finance rate knowing I would refinance down the road. Carmax actually gave me more than what I expected for my 08' pathfinder and transported my 2015 SR5 with 8k miles from PA to CO for free with no obligation to buy. I agreed to finance with them originally. It was seamless and a really great experience besides them pushing their service/additional warranty packages.

14 months later I started looking at re-fi options and ended up using Clearlane (one of the online financing search engines) Within the day I had an application to a small credit union that gave me a much better rate at the time (mid 2017) and more savings if I enrolled for autopayments. They connected me with Matadors Credit Union in CA and had the loan payment to carmax / title transferred within a few weeks. They have been easy to work with although their online portal is a bit dated. I would highly recommend both Clearlane and Matadors as potential interest savings for anyone considering it.

 

[Catch22]

For new and used, Credit unions are the way to go for the best rates. Right now rates are historically low so many of you should consider a refi. You can save a lot of money (especially if you shorten the term) and it’s not that hard to do if your credit is equal or better than when you got your loan initially. Contrary to popular belief you also don’t need to wait 6 months from the date of purchase to refinance, just make sure your credit score is at its best before re applying.

You can google the best going rates for the term (length) you are looking for with the unions in your area and simply call the bank with the good rates and ask to be qualified for a refinance. You don’t need to be a member before starting a loan with a credit union. Credit unions prefer newer cars for low rate refinancing I think 2016 and under 100K miles was what they told me when I just refinanced my 18 4Runner with 39K

The lowest rates I saw when I just refinanced was 1.80 (new car 60 month) the rates on new are always the lowest.

I got my refinanced loan from a,
72 month @ 3.4% (2 months ago BOFA) to a,
65 month @ 2.2% (last week @ Nusenda FCU)

My payment stayed the same, but dropped about 6 months of payments and I’ll pay 1500 less interest over the loan life. My credit score was the same at both times. My girlfriend did the exact same thing with her car so I had to copy her since rates are so good now.

So long story short if you go a with little shorter loan at a credit union you can save a lot with the same credit score.

 

[Jsch222]

For new and used, Credit unions are the way to go for the best rates. Right now rates are historically low so many of you should consider a refi. You can save a lot of money (especially if you shorten the term) and it’s not that hard to do if your credit is equal or better than when you got your loan initially. Contrary to popular belief you also don’t need to wait 6 months from the date of purchase to refinance, just make sure your credit score is at its best before re applying.

You can google the best going rates for the term (length) you are looking for with the unions in your area and simply call the bank with the good rates and ask to be qualified for a refinance. You don’t need to be a member before starting a loan with a credit union. Credit unions prefer newer cars for low rate refinancing I think 2016 and under 100K miles was what they told me when I just refinanced my 18 4Runner with 39K

The lowest rates I saw when I just refinanced was 1.80 (new car 60 month) the rates on new are always the lowest.

I got my refinanced loan from a,
72 month @ 3.4% (2 months ago BOFA) to a,
65 month @ 2.2% (last week @ Nusenda FCU)

My payment stayed the same, but dropped about 6 months of payments and I’ll pay 1500 less interest over the loan life. My credit score was the same at both times. My girlfriend did the exact same thing with her car so I had to copy her since rates are so good now.

So long story short if you go a with little shorter loan at a credit union you can save a lot with the same credit score.

I'd encourage people to go into the transaction having already spoken to a bank/credit union. The dealers finance department makes a ton of $. My last two cars we went into the dealer with rates at 2.3% for 60 or 72 months - both times the dealer could not match. I can nearly guarantee that if you paid 3.4% - the dealer got your rate at 2.4% and made a point on the loan. This is not uncommon.

 

[s13koop]

I shopped around and found DCU out of Boston (I'm in Houston)
1.99% on used 2010 Trail which is unheard of. Needed to get in touch with them twice and actually got a person both times. Super helpful

 

[ElectroBoy]

As others have noted, credit unions offer the best rates on auto loans. And every other banking service you can think of. Here’s a plug for the one I use, Star One Credit Union. If you live in the SF Bay Area in these counties you can join:

Individuals who live, regularly work in, or attend school in Santa Clara County, California
As of 02/26/2020, individuals who live, regularly work in, or attend school in Alameda County, Merced County, Monterey County, San Benito County, San Joaquin County, San Mateo County, Santa Cruz County, and Stanislaus County, California.

Or if you’re an employee of dozens of corporate partners (see list at link below).

To apply for membership, maintain a $50 balance in your Savings Account, and your membership is active.

There are no membership fees.

Who Can Join Star One Credit Union?

Auto loan info:
Our Best New Car Loan Rate: 2.60% APR - Star One Credit Union, California

 

[Mudballz]

Mom and Dad :hatsoff beg

 

[LandCruiser]

I have financed most of my cars through credit unions, except the wife's JGC which needed to be financed through Chrysler Capital to get all the discounts.

Golden 1 in CA is pretty good.

I also used Travis in CA and Westerra in CO.

And contrary to popular belief, dealers don't give a donkey's nutsack if you show up and offer to pay the entire purchase price with cash.

 

[jhguth]

And contrary to popular belief, dealers don't give a donkey's nutsack if you show up and offer to pay the entire purchase price with cash.

eh disagree, they often do care because they want to sell you financing

i always wait until all negotiations are done before telling them I'm not using their financing

 

[LandCruiser]

eh disagree, they often do care because they want to sell you financing

i always wait until all negotiations are done before telling them I'm not using their financing

That's what I meant, they don't care if you can pay for the entire vehicle. If anything they want you to finance with one of their partners for 60-72 months.

 

[2021nightshade4x4]

PenFed gave me 5.14% over 84 months and overnighted me a check, having middle 600s FICO Auto 8. Good enough I suppose, finance manager didn’t even ASK for my SSN to try for anything else… LOL

They don’t require you to have a prior relationship, just start a savings with $5.00 at time of application.


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[josephp732]

Purchased my 2021 TRD ORP about a month ago, 1.99% 72 months. Went through the Toyota dealer who got the rate from Bank of America.

 

[ToryBlaker]

correct try local credit unions and banks, i've always had better luck with credit unions for the best rates.

I totally agree with our on this, I highly recommend.

 

[AdrianVall]

Suncoast Credit Unions have always given me the best rates.

I'm currently at 3% for 84 months.

 

[osugsxr]

rates are pretty good at 84 months and with the residual value of a 4runner it can make sense do 60/72/84 . I usually stay around 36 month or less

 

[Lexington]

I have 1.65% for 72 months through my credit union. You might have to go back and forth between them and the dealer, it's their "beat the dealer" rate.

Yes I have about the same rates for my vehicle. Over the years I’ve found that the Credit Unions always had the best deal. But the current inflation increase may end those cheap rates soon.

 

[John in NC]

Don't all 5th gen buyers pay cash! And have an Audi in the garage?

Joking of course

 

[2021nightshade4x4]

Don't all 5th gen buyers pay cash! And have an Audi in the garage?

Joking of course

Jesus if you watch enough YouTube and TikTok you’d sure think so!


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[mbm112]

Can anybody enlighten me? I'm currently at 4% for 48 months. I wonder if I'm being mugged? After reading the thread, I've seen many better conditions than mine. What are these companies taking into consideration when performing loans with various interests?

How’s your credit and history? Who’s the bank? There are so many pieces to your story that we can’t really apply a blanket statement or reasoning.

As a former finance manager, I have seen some banks put a higher buy rate on 36 and 48 months. As a consumer, it seems counterintuitive, but remember a bank seeks to make money on these loans. So they’ll put a higher rate in exchange for the shorter term, in short the bank always gets their money.

Either that or the dealer added a point or two to the buy rate and you accepted it.


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[Lexington]

Can anybody enlighten me? I'm currently at 4% for 48 months. I wonder if I'm being mugged? After reading the thread, I've seen many better conditions than mine. What are these companies taking into consideration when performing loans with various interests?

I would say your credit score usually is the biggest factor. Next is who you borrow the money from. Dealers are usually the worst unless they are desperate to make a sale. Rates between banks can vary a lot. The big banks usually charge more than smaller banks. I’ve found Credit Unions almost always have the best rates. Did you shop around? How much have you already paid off? If you already paid 20% banks may give you a better deal if you try to refine the loan because it’s a lower risk to them. But even if you just bought it shop around anyway because there is a good chance that your car is worth more now than what you paid and that works in your favor especially if you have a popular car.

 

[TRDHULK]

Lightstream