This is a summary of the forum discussion at City-Data.com on suggestions for which bank to obtain an auto loan from.
Here’s coolpix99′s auto / car loan situation
“coolpix99″ is looking to buy a used car and wants to take out a car loan for approximately $10,000. The question arises, which bank gives a good car loan rate?
Customers having an account with National City will get charged $150 for processing fees.
PeterRabbit’s car financing advice
Check to see if the car loan has a clause that will result in a prepayment penalty if you pay off your loan early.
Federal law permits prepayment penalties. Banks that are federally-chartered can ignore state laws and include such penalties as part of a loan.
Just like with getting a home mortgage or other types of loan, do shop around for the best car loan deal.
Check auto financing specialists such as GMAC which might give you the best deal.
Larger car dealers (and probably the smaller ones too) make a commission on your financing. If the bank charges the dealers 10%, they might charge you 10.5% or more. Ask what bank they use, then visit there (or call them) yourself. Since the dealer might have called the bank with your details, you could call anonymously and ask for their current rate.
Auto loan processing fees tend to run in the 1 – 2% range of the loan amount. Many feel that this an unnecessary expense which can be considered a commission for the person who processes your paperwork. If you have strong credit, try negotiating this down to zero. Always remember to negotiate the loan rate, and also negotiate everything else.
A recommendation for Ford Credit
“Pitt Chick” has always obtained auto loans from Ford Credit, as they gave her the best terms, better even than her credit union.
On her last loan, she paid it off four months early with no prepayment penalty.
Try your local credit unions
Credit union often have great rates on auto loans, according to “sleepybeth”, who then suggested to try Pittsburgh Federal Credit Union.
“hempfield mania” added that because it’s next to impossible to be eligible for any financing deals for a used car, a credit union would be your best bet as far as obtaining car loans with low rates and low or no associated fees.
“khyron” also supports the idea of trying to get an auto loan with your friendly local credit union as they often throw in a few perks such as cheap Kennywood amusement park tickets.