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US National Auto Interest Rates

73251 Views 309 Replies 57 Participants Last post by  javi_ID4
I am not a financial advisor, the research below is for informational purposes only. If you want to learn How To Pay No More Than MSRP, see my post here.

Always look for local credit unions around you first.

Avoid credit hard pulls if possible.

Just for fun I decided to check what is the Volkswagen US National interest rate for loans. Looks like up to 48 months the interest rate is 6.39% and up to 60 months 6.39%. Searching the "internets" I found:

1. Interior Federal Credit Union offering 5.00% for loans up to 36 months and 5.25% up to 60 months. The Credit Union has an open membership for anyone who join the New Mexico Wildlife Federation.

2. Fort Financial Credit Union offering "as low as" 5.49%. The Credit Union has an open membership for anyone who joins the Financial Fitness Association with an $8.00 donation. Rates are based on credit qualifications, including credit score, minimum amount financed and term, and includes Premier relationship discount of 0.25% APR.

3. Park Community Credit Union offering 3.25% up to 48 months and 3.50% up to 60 months. The Credit Union has an open membership for anyone who joins the Financial Fitness Association with an $8.00 donation. They are not accepting virtual applications at this time. You need to visit a local branch.

4. SRI Federal Credit Union offering 4.99% up to 72 months. Possible 0.26% rate discount on Zero Emission. The Credit Union has an open membership for anyone who joins the Financial Fitness Association with an $8.00 donation.

5. Tower Federal Credit Union offering 5.74% up to 36 months, 6.49% up to 60 months and 6.99% up to 72 months. The Credit Union has an open membership for anyone who becomes a member of the TowerCares Foundation with a $35 donation. Receive a 0.25% APR autodraft discount when you autodraft your payment from your existing checking account

6. Insight Credit Union offering 4.49% - 17.45% up to 84 months (Receive a 0.25% APR autodraft discount when you autodraft your payment from your existing Insight Credit Union checking account). The Cedit Union has an open membership with a $5.00 donation to the Insight Community Foundation.

7. United States Senate Federal Credit Union offering 2.99% up to 36 months, 3.24% up to 48 months and 3.49% up to 60 months (rates include 0.25% rate discount for automatic payment from a USSFCU account). Membership is open to anyone through a contribution to the US Capitol Historical Society (USCHS).

8. CommonWealth One Federal Credit Union offering 2.74% up to 36, 3.99% up to 48 months, 4.49% up to 60 months and 4.99% up to 72 months. You can join CommonWealth One FCU by becoming a lifetime member of the non-profit, consumer education organization, Virginia Consumer Council (VACC).

9. Gold Coast Federal Credit Union as low as 3.49%. You can become a member by making a contribution to $5.00 to the New Horizons Elementary School PTA. GCFCU is no longer accepting out of state applications. See post here.

11. Taleris Credit Union rates as low as 3.49%. You can become a member by making a $5.00 contribution to either the Public Animal Welfare Society (PAWS) or Seven Hills Historical Society. Loan Rate Discounts: Fuel Efficient, Electric, or Hybrid vehicle purchase = 0.10% discount Fuel Efficient Autos, which are five years old or less, and get 30 mpg Hwy or more, and have less than 75,000 mile

12. Digital Federal Credit Union (DCU) with rates as low as 5.74% up to 65 months. Published rate includes a 0.50% discount given when you maintain electronic payments and Plus or Relationship benefits on your DCU checking account. You can get an additional .25% off if you finance an energy efficient vehicle. You can become a member by following this referral link for a chance to get $20 with qualifying account with qualifying activities.

Non-Traditional Car Lending

1. Carputty a revolving line of credit is designed to seamlessly finance all of the vehicles in your garage – new or used, present or future. You’ll never have to apply for an auto loan again! A Carputty line of credit is tied to you—not a specific car.

2. First Republic Personal Line of Credit offering 6.95% – 8.45%. You can use your line of credit for whatever you want. Per their FAQs "First Republic Bank has a limited service area for retail banking. Personal Line of Credit applicants must be located within close proximity to our offices in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland (Oregon), Bellevue (Washington), Jackson (Wyoming), Boston, Palm Beach (Florida), Greenwich or New York City."

More info here

3. Bank of America Business Auto Loan Fixed rates as low as 6.19% - You can get up to four Small Business Auto Loans with one Experian hard pull the same day. If you wait till the next day to apply, you will get a second hard pull on your Experian credit report. What you need:

1. Properly established LLC with EIN (The LLC I used I established it last month for my Turo business)
2. Stated personal income
3. Stated business income
4. Maximum combined loan amount $75K. For example, you can do three $25K loans or divvy up the $75K between 4 loans.
5. You need to wait till a loan is approved before applying for the next loan.
6. All four loans have to be requested the same day. If you wait till the next day or later, there will be another Experian hard pull.
7. Minimum Experian FICO score 720
8. Make sure that you write down exactly the same information on each application

If you need help establishing an LLC and/or getting business funding up to $250K in unsecured business credit cards, go to this link.

Did any of you get a lower interest rate recently? If so, what bank or Credit Union?
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pretty decent rates.

I didn't find as good of rates back two weeks ago. Went with dealership financing (they outsource to Cal Coast Credit Union). 5.08% for 75mths. My credit score is >800.
I have a '23 reserve that is in status 15-2 with a VIN and already showing as "In Transit" on my dealership website. I decided to research my local Credit Unions because I am not letting the dealer pull my credit and soil my credit reports with unnecessary hard inquiries. Then I had the idea of start looking for Credit Unions nationwide that are open to outside members. The rates are great. I just wanted to share in the forum. Some of these Credit Unions have great rates if you refinance. Maybe you can look into that.

By the way. It is possible to remove hard inquiries from your credit reports. But I'm not going to discuss that here.
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Tower Federal Credit Union has super low rates at the moment. I nabbed 2.99% for 60 months. If you don’t fit the criteria of membership, you can donate $35 to their foundation to gain membership.
Excellent!!! I added to the list above. Keep 'em coming.
The issue with credit unions that don't have agreements with dealer

no they can not. HOWEVER, the dealer doesn't have to hold the vehicle while you work out financing. Working with a credit union is great, with exceptions. They usually only have agreements with local dealer, and often are not available on Saturdays. Unless there is an agreement in place, the dealer wont let you take delivery without funds.
If the dealer is able to hold the vehicle for you during this time, then you'll be good. Given the market, supply, and demand for the id.4, they likely have others waiting behind you and have little motivation to hold the vehicle for a week.
I recommend calling the Credit Union first and find out the details of the loan application process. If you apply, try to get a number from someone who you can call directly. Also, schedule your appointment at the dealer first thing in the morning on a non-holiday weekday so you can have all day to make phone calls. Try to put down a $1k to hold the car until you can work getting finance. And NEVER tell the dealer how you are planning to pay for the car.
I added to the list Insight Credit Union at 3.29% (3.04% with auto pay) up to 84 months.
I just added three more to the list
Anyone used Autopay to find the best rate?
I've seen ads about Autopay when doing my research. Per their FAQs "During the application, we do a soft pull on your credit that will not negatively affect your credit score. Only when you choose an offer to submit for lender approval, does AUTOPAY run a hard pull against your credit which may affect your credit score."

My issue with these services is that they may do more that one hard pull, once I choose an offer, from my credit report lowering my score. And before someone parrots what everybody says, "Pulls within a certain time frame that are properly coded as auto, mortgage, credit card, etc., will be treated as a single pull on your FICO score", understand that credit application robots and financial institutions can consider these pulls any way they like. Too many inquiries can show the credit application robot or bank that you are desperate and will deny you credit.

Before applying online (good), over the phone (better) or in person (best), I recommend calling the Credit Union or Bank and ask questions:

1. What are the requirements to get the lowest rate?
2. What is the highest limit you can approve?
3. How many months are you offering that rate? 36, 48, 60, 72?
4. Which Credit Reporting agency do you pull from?
5. What FICO score model you use to decide to grant credit? FICO 8, FICO 9? (You can get for $29.95 all your different FICO score models from all three credit bureaus at Just make sure you cancel the service right away so you don't get billed monthly.) Free Vantage score from Credit Karma is trash and useless.
6. Can you pre-qualify me with a credit soft-pull?
7. Is the underwriting done in-house?
8. Can I apply for a car loan before I join the Credit Union?
9. What documents do you need from me to start an application?
10. If I get approved, what documents do you need from the dealer?
11. Will you provide an approval letter?
12. How long is the approval good for? 30 days? 45 days?
13. Will I be working directly with a loan officer?
14. Can I apply for other loan products, line of credit, credit card, with the same credit pull?

Before I apply for any kind of credit, I always try to go to an institution that only pulls from Experian. It is so easy to dispute and remove hard inquiries from Experian. TranUnion is also easy, but requires a little more effort. Equifax, it is extremely hard and almost always impossible to dispute hard pulls.

If I know they will pull from Experian, before I apply, I freeze my TransUnion and Equifax credit reports just in case. Once approved, and I have the car, mortgage or credit card, I have the hard inquiry removed. Same if I don't get approved.
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Got pre-approved for Tower but working through the documents to actually get the check cut. So far seems decent, only hurdle was they wanted a signed purchase agreement by both myself and the dealer which my dealer just scanned and emailed to me.

Turnaround seems about a dayish. Signed up on Saturday and got pre-approved on Monday.
Would you mind sharing which credit bureau they pulled from?
Added Gold Coast Federal Credit Union. To verify the information below, please call them at (561) 965-1000, don't just take my word for it.

1. The lowest rate for a new auto loan is 2.49% up to 60 months
2. No limit on loan amount.
3. You need to open an account first before applying. You can become a member by making a contribution to $5.00 to the New Horizons Elementary School PTA.
4. They do a soft-pull on Equifax to open an account. Hard-pull to apply for the Auto Loan.
5. Lowest rate for best interest FICO 770
6. The underwriting is done in house
7. They will you provide with an approval letter via email to take to the dealer.
8. Approval is good for 60 days.
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I just wanna take a moment to appreciate @javi_ID4 for the awesome research he has been doing!!! THANKS!
Thank you. My pleasure, really.
How are folks getting through at GCFCU? Trying option 0 just seems like a forever hold.
Same thing happened to me. Eventually someone will answer. Is a small Credit Union.
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FYI I called them and GCFCU is NOT part of the credit union direct lending network which per my dealership would make it very difficult working with them. I don't know how true that is but I don't think the dealership would have any reason to lie.
I don't think they are lying. The dealer just don't do business with that particular credit union directly. You can use any bank or credit union you want to fund your purchase. Just ask the dealer for a signed purchase order and send it to your lender.

Yesterday I was at my dealer just for a visit. I'm using a local credit union that is not part of their network for the my reservation. They don't care as long as I have the funds to make the purchase.
Is there a list of direct lending network? Or it varies for each dealership?
Each dealer has a list of banks and credit unions they do business with. That doesn't mean they can get you a better deal on financing.
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Always look for local credit unions around you first. Use Google maps and type "Credit Union near me". You may be surprised what you find. There may be that one CU that only has one branch, no TV or radio ads or paying to have their name in some local arena, that offer great rates and excellent customer service.

That is what I'm doing myself. The CU I chose only has one branch and membership is only for local residents. Never heard of it. Even the dealer finance guy had no idea they existed. But, they beat any rate the dealer can offer.
Can someone please explain how does this work with CU when all you have is approval email?

CU instructions say:

Signed purchased order, including VIN.
Original Notarized Specific Power of Attorney signed by all proposed title holders

So say I am sitting at finance department and they are asking me to pay for the car, do I just tell them that I need all signed paperwork to send to CU and they will pay you whenever, then take the keys and drive off with the car?
They need a signed bill of sale and the legal document transferring the car to you. Call the CU and ask how they want the documents sent. I'm sure the finance dept can ask also.
Blast - local credit union here is offering 2% 60 months but I can't find my social security card to open an account :confused:

Membership requirements:

Employment by one of our employment sponsors or a Christian of any denomination.

I'm calling
Interesting, I will give it a try. Just seems a bit of a hassle with Tower CU process
Watch this video about using a Credit Union or Outside Bank to Finance Your Car

Dang I was going to use SF Federal CU but their rates shot up to above 6%!

Looks like the rates of a few others on this list have increased as well: Commonwealth, and JM associates.
Thanks. I took it off the list.
Added to the list Taleris Credit Union.
I only applied for membership yesterday. Twiddling my thumbs now until I hear back.
Was your credit pulled for the application?
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