Current Vehicle Interest Rates

Current Vehicle Interest Rates: How to Get the Best Rates?

In your search for current vehicle interest rates, you opt for the lowest possible rate. It is a given fact that every lending institution that offers auto loans uses varying rates. However in your search for the best auto loan in the market you have to consider not only the lender’s offers but several factors as well. Thus it is highly recommended that you consider not only interest rates in today’s marketplace but your financial situation as well including the options and limitations. With that being said here are some important details on how you can get the best interest rates.

Where can one acquire auto loans?

There are three possible lenders where you can acquire auto loans. Each may offer you varying rates based on the market’s current vehicle interest rates. To give a better view about lenders here is a brief description of the three.

  • Car manufacturer – It is a common misconception that interest rates offered by car dealers are automatically higher and more expensive. Technically speaking car dealers obtain wholesale interest rates; this can be passed down to consumers depending on the market’s trend. However to avail 0% financing, ample knowledge regarding this subject matter is necessary.
  • Credit Unions – Most employees acquire their auto loans at their credit unions. In a 2011 analysis they have concluded that credit union’s interest rates are lower than banks in 36 months and the 48 months car loans. It is stated that credit unions offer 3.88% for 36 months loan and 3.80 % for 48 months while banks offer 5.61% and 5.12%.
  • Banks – Car loans from banks are preferred for longer loans. In the same 2011 analysis of the Credit Unions they have concluded that banks offer lower interest rates for 5 years loan. In addition, individuals who do not have access to unions rely on banks for their car loans.

As of today this trend is still observable. Thus before deciding on which lender to opt for considering other factors is imperative.

Factors that determine interest rates

Aside from lenders there are other determining factors that affect current vehicle interest rates. Although these details are most likely provided by lending institutions you must still be aware of these factors.

  • New or used car – There is a significant difference between interest rates of new and used cars. Typically, 0% interest rates are applied for new cars. As a rule of thumb the older a car is the higher its interest rate.
  • Duration of loan – It is highly recommended that one must opt for the shortest possible loan duration. As of 2009 lengths for car loan can go as long as 64 months. However this practically resulted to consumers paying more than what the car is worth. As for 0% financing this is typically applied in 2 or 3 years loan duration.
  • Credit score – Like all kinds of loans your credit rating can affect your interest rates. Basically only those with impeccable credit ratings can acquire a 0% financing. Furthermore this can also affect your chance of approval.


Individuals who are not approved should consider fixing their credit ratings. This is primarily because credit score will not only affect current vehicle interest rates but your chance of approval as well.