A new car will get you where you want to go (within driving distance). But unless you can pay $20K+ cash for it, it’s time to scout out vehicle loan options.
Here’s what you should know when considering a car loan:
- Most car loans come with interest (like any other time you borrow money). Unless your credit score is Exceptional and you qualify for 0% financing (a “zero interest loan”). In which case, go you. 👏 (But be sure to check the fine print carefully – you’re likely to forfeit other incentives or cashback toward the price of the car.)
- Your monthly payments will depend on the length of your loan. Most car loan terms are 12-72 months.
- You’ll see the acronym APR a lot. APR = annual percentage rate. This is what you pay each year to borrow money via the car loan.
- The APR you qualify for depends on your credit score (remember that 0% we mentioned above?). Those with Poor to Fair scores usually pay more APR on a car loan, from ~10-19%. People with Good scores pay an average of 3.96% (new cars) or 5.42% (used cars).
- You can get car loans from different places – including banks, car dealerships or manufacturers, and credit unions, which often offer the best rates of all three options.
- Local credit union Greenville Federal Credit Union offers new-car rates on pre-owned + refinanced vehicles with <30,000 miles + under 2 years old. Plus, they will actually beat other lenders’ rates by a quarter percent – which may seem small, but can definitely make a difference.
See more tools for financing your new car here, and see all of Greenville Federal Credit Union’s car loans + rates here.
(If you’re already ready to apply for a car loan, click here to start the three-step process.)
More benefits of car loans from credit unions here.
This content was created in partnership with Greenville Federal Credit Union.
