"Is a 2.85% interest rate on an $8,000 vehicle good for my first car loan? "

"I was pre-approved for an $8,000 car loan by my credit union. This is the first time I have ever financed a car, but I have perfect credit and a good-paying job.

Could I do better than the 2.85% they are offering or is it a waste of time shopping around for a better rate?


“It is never a waste of time to shop around for a better rate. That is something you should always do.
However, credit unions are very hard to beat in terms of auto loans and you should not put a ton of time into looking for a lower rate. Also, 2.85% is an extraordinarily low rate and the savings would be minimal even if you were to find a lesser rate. “
Johnny Puckett
Answered on May 11, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.

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