How to Find Banks with Low Auto Loan Rates
If you are looking for the lowest auto loan rates, you will need to know how to find banks and other lenders that offer the most affordable car loans. In order to get the lowest rates possible, you will need to have good or excellent credit to minimize the risk of the car loan lenders that you apply with. This how-to guide will show you to find a bank auto loan that has a low interest rate.
What You Will Need
- A personal computer
- An Internet connection
- Basic Internet research skills
Step 1 - Research Lender Rates
You can use the Internet to quickly research car loan interest rates currently being offered by banks in your area. You can visit websites like BankRate.com and Interest.com to find car loan interest rates offered by banks in your local area. Visit these websites and choose your state and city to view rates. You can click on links for the banks listed on these websites and be taken to another source that will give you more detailed information about the loan, or retrieve contact information to request further details on low interest car loans.
Step 2 - Look for Credit Unions
Credit unions are a great source for low rate auto finance loans. If you are not currently a member of a credit union, visit local credit unions or search for one online and inquire about membership requirements. You may be eligible for membership in a credit union based on where you live or work. You may also be eligible for membership if a family member is already a member or eligible to be one. If you are eligible for membership in a credit union and have good credit, you will be able to take advantage of credit union car loan rates which are often lower than most traditional banks or finance companies.
Step 3 - Research Captive Finance Companies
If you are shopping for a new car or certified used car, you might be able to take advantage of special finance deals being offered by captive finance companies. Captive finance companies are simply the lending arm of the major car manufacturing companies. Most larger car manufacturer companies have a subsidiary that makes car loans to consumers. For car buyers with good or excellent credit, these companies often run incredibly low interest loan deals - sometimes as low as 0 percent. Even if there are not interest-free loans currently available, you will usually be able to take advantage of very low interest rates. However, you should be aware that these low interest loans are usually only made for loans with particularly short terms of 2 years or less.
Step 4 - Check with Loan Broker Websites
Another way to find banks and lenders that are offering low interest car loans is to visit online car loan brokers sites. Websites like LendingTree.com will allow you to request loan quotes from up to four lenders at once, while submitting only one application. The lenders will then send their car loan offers directly to your email so you can review and compare your offers. If you have good credit, you n can expect to receive some very competitive rate offers.