Who has the best new car loan rates?

I want to finance a new car, but I’ve never had a car loan before. My friend told me that credit unions have the best rates, but my dad said dealerships always run promotional deals. So, who actually has the best new car loan rates?

Answer
Finding the best available car loan rates is an essential part of buying a car. While your friend and dad could have a long-winded debate, they’re both right! The best car loan rates will depend on both the borrower and the lender.
Historically, credit unions have the best rates because they qualify as nonprofit organizations. Since their focus is the borrower rather than themselves, credit unions offer consistently low rates with flexible terms.
However, dealerships may also offer competitive rates. Dealerships use low rates and discounts to entice buyers to buy older car models around the end of the year. They’ve even been known to offer 0% APR financing, which is essentially an interest-free loan.
Bank car loan rates vary between organizations. While local and regional banks have comparable interest rates to other lenders, national banks tend to be higher.
Nowadays, you can even find lenders online! Because they don’t have a brick-and-mortar location, they can undercut lenders who rely on high returns to make rent. Especially with online lenders, make sure you do some research on the organization before you sign an agreement.
For help keeping your monthly payments as low as possible, start saving on car insurance with Jerry. A licensed broker, the Jerry app helps you compare quotes from over 50 brand-name providers like Progressive and Nationwide in minutes. When you find a better rate, Jerry can help you buy your new coverage and even help cancel your old policy!
Eric Schad
Answered on Nov 11, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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