Bankrate.com lists current national averages for loan rates, according to Consumer Reports. Providing your zip code gives you some local rate information, but checking directly with the lenders in your area is also helpful. In some cases, the dealership's rate are best.Continue Reading
Bankrate.com provides updated average loan rates across the country along with offers from some local lenders. Roll your mouse over the Auto tab under the Compare Rates banner on the site's homepage to find this information. However, you must provide your ZIP code, explains Consumer Reports. The site's selection of local offers is limited, and you must check with individual local institutions to obtain a more complete list of options.
Although your dealer may offer an attractive low- or no-interest loan through the car manufacturer, selecting that option may result in losing access to the auto maker's rebate program, points out Consumer Reports. In this situation, obtaining financing independently and taking the rebate from the dealer results in the best deal.
Local banks and credit unions are two places to look for competitive rates, adds Consumer Reports. Your bank, assuming you have a banking relationship with a local institution and also have good credit references, is often the best place to start looking. Start by checking the bank website but apply in person to get the most favorable terms. Typically, credit unions require membership before making a loan, but their rates are moderate because of their low operating costs.Learn more about Credit & Lending