What are your picks for the best auto loan companies?

[Cristen Wyght]

I've been planning on buying a car for a few months now and i want to find the best car loan rates. I am not sitting on a nice pile of cash, that's why for me the best auto loans are the ones with the lowest rates. I want to compare interest rates from outside sources (banks, credit unions, online auto-loan companies) and get pre-approved for the best loan I can find before I head to the dealer. What are your picks for the best auto loan companies?

[disneysteve]

I've been planning on buying a car for a few months now and i want to find the best car loan rates. I am not sitting on a nice pile of cash, that's why for me the best auto loans are the ones with the lowest rates. I want to compare interest rates from outside sources (banks, credit unions, online auto-loan companies) and get pre-approved for the best loan I can find before I head to the dealer. What are your picks for the best auto loan companies?

That depends on various factors like where you live (not all lenders operate in all states), your credit score, etc. Take a look at bankrate.com. That's a good place to start. Also check with local banks and credit unions. Your local paper may list that info.

[disneysteve]

A couple of other comments.

If you will be buying from a dealer, they will often match the best offer you get elsewhere in order to keep your business in house. I've had that happen with both of my last car purchases. It never hurts to ask.

The other point I always make in car conversations is to remind people of the car loan rule of thumb: the loan should have a payment of no more than 10% of your monthly income for no more than 36 months.

[Jluke]

I like 0%, 0.9% or 1.9% special financing offers that are offered by the manufacturers - like Honda, Toyota, etc...

usually offers are available on new or certified pre-owned vehicles.

[TexasHusker]

Aside from the special incentives offered by the manufacturers, credit unions always win in the "low rates" game.

If you can score a substantial cash discount or rebate in lieu of the special financing, you are often better off taking that and THEN financing with your credit union.

[cooliemae]

My personal favorite is PenFed, but I don't know if you would eligible to join, which is a question for all credit unions.

We financed our last car with them for 1.49/60months! Right now they're at 1.99/48months, which still ain't bad.

[kork13]

My personal favorite is PenFed, but I don't know if you would eligible to join, which is a question for all credit unions.

We financed our last car with them for 1.49/60months! Right now they're at 1.99/48months, which still ain't bad.

Ditto. They're in the stone age when it comes to all the paperwork, but their rates are exceptional and customer service has always been great for us.

[commoncentsmike]

My personal favorite is PenFed, but I don't know if you would eligible to join, which is a question for all credit unions.

We financed our last car with them for 1.49/60months! Right now they're at 1.99/48months, which still ain't bad.

Even if you can't get a PenFed rate (which is crazy low) I'd still second the credit union route.

[greenskeeper]

I prefer the bank of M E (pay cash)

[disneysteve]

I prefer the bank of M E (pay cash)

True, but when you can borrow for 0% or 1 or 2%, I'm fine taking out a short loan. I paid of my car in 12 months. I took a little longer for my wife's van but our daughter was in college by then.

I'm not pulling money out of investments making 7% or more to avoid a car loan at 3% or less.

[greenskeeper]

True, but when you can borrow for 0% or 1 or 2%, I'm fine taking out a short loan. I paid of my car in 12 months. I took a little longer for my wife's van but our daughter was in college by then.

I'm not pulling money out of investments making 7% or more to avoid a car loan at 3% or less.

your not going to get 0-2% on a used vehicle (which is by far the best value when buying a vehicle)

I'd never touch investments for large purchases, that's why a I have dedicated money market account for that.

There is nothing I need that badly to finance aside from a house.

[bjl584]

I've done well simply financing through the dealership over the years.

[LeannMerletta]

I like 0%, 0.9% or 1.9% special financing offers that are offered by the manufacturers - like Honda, Toyota, etc...

usually offers are available on new or certified pre-owned vehicles.

Yeah, look for a 0% maybe up to 1%. It's a good deal.

[siggy_freud]

your not going to get 0-2% on a used vehicle (which is by far the best value when buying a vehicle)

I'd never touch investments for large purchases, that's why a I have dedicated money market account for that.

There is nothing I need that badly to finance aside from a house.

My credit union was offering 1.49% on a used car up to 7 years old. With rates going up they're at 1.99%. I have my 2014 Jeep with me at 1.99%, and all my previous used cars were 1.49% with them. Cars are my vice . . .

[Cristen Wyght]

Thanks for all the replies. Just to give me the overview, I have visited and inquired from a commercial bank and our local credit union regarding their auto loan offer. This definitely gave me the comparison of each detail and hopefully, I have not left anything important. I can say that the credit union loan on auto purchase may seem much attractive to me considering the flexible payment terms and lower interest rate.

My question though is, will the length of membership in a credit union affect any loan approval? I am yet to be a member.