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Digital News Report – Auto loan rates are dropping and there are plenty of options available to buyers seeking car loans. Last week Bank Rate calculated a rate of 5.49% on 36 month used car loans. This week that same product is 5.47%.
The interest rate and payments will depend on the length of the loan. Terms typically are extended from 36 months to 60 months. In some cases a loan could be extended for 72 months, or six years.
We found Bank of America to have the lowest car loan rates. Their 48 month new car loans were available at 2.99%.
Another factor affecting the loan rate is the credit score of the borrower. Many dealerships will offer zero percent financing, but if the car buyer has a bad credit history they won’t get the loan.
Just because a bank advertises a low interest rate doesn’t mean that everyone will qualify for the loan. People with a bad credit score will either pay a higher rate or get declined.
Chase had a base rate of 4.23% for the same loan.
If you need a used car loan, Nationwide Bank had a base rate of 6.45 on their 60-month term.
Used car loans usually have a higher interest rate. We strive to provide accurate base rates but they are subject to change and may vary.
By Tina Brown