Auto Loan Rates

• Know your credit score
• Show proof of income
• Show proof of residency
• Have valid photo ID, SSN or taxpayer ID number

To begin the process of financing an auto loan, know your credit score. You can obtain a free credit report with Experian, Equifax or TransUnion. Once you know your score, be prepared to show proof of income with a W2 or other employment documentation. Also have proof of residency, insurance, valid photo ID and your social security number or taxpayer identification number. You can call us today at 904-224-9077 to open an auto loan or apply online.

Typically, higher credit scores get better interest rates on loans, which lowers your monthly car payment. Lenders evaluate credit scores, payment history, outstanding debts, and other financial behaviors to gauge the risk associated with lending to an individual. A higher credit score gives the lender more confidence in your commitment to repay the loan.

The exact formula that determines a credit score is not known, however there is a general breakdown of factors that determine your score. These include:

• New credit
• Credit mix
• Length of credit history
• Credit utilization
• Payment history

Learn more about what factors influence your auto loan interest rate.

If you are looking for a better interest rate, banks and credit unions typically offer better rates on newer vehicles. This is because lenders can more accurately assess the value of a new car than a used car that may have undisclosed damage, recalls or other things that affect its value. However, it's important to assess your financial situation before applying for an auto loan. For instance, if you are ready to commit to a longer loan, opt for a newer vehicle. However, if you don't have much credit history or you have a lower credit score, it may be easier to find financing on a used vehicle at a higher interest rate and longer term. It is important to be aware of the Loan to Value (LTV) ratio as well. Contact our loan team to help you assess your situation. You can also apply for an auto loan online!

Credit unions are not-for-profit institutions that serve their members. Credit unions, like Community First Credit Union of Florida, typically offer better interest rates on loans than banks do. Check our auto rates above and compare to your bank's current rates, or call our Express Team at 904-204-2929.

If you want more visibility and control over your loan terms and interest rate, it’s better to work directly with your credit union or bank. While it can be convenient to allow the dealership to secure financing on your behalf, the dealer might negotiate a higher interest rate with you than what the financier is offering.

Getting a loan from your credit union or bank allows you to buy a car with the equivalent of cash, which enables you more negotiating power with the dealer.

A variable rate auto loan, also called adjustable rate loan, can change periodically. This variable rate is tied to a benchmark rate such as the prime rate. This kind of loan is beneficial to a borrower who can afford more risk to their monthly budget. Variable rate loans can be beneficial when rates drop, lowering the payment periodically.

For borrowers with strict monthly budgets, a fixed rate is best. A fixed rate is set upon purchasing and will not change.

The 20/4/10 rule suggests that you should:

These expenses include loan payments and insurance. Following this rule can provide you with more financial control and reduce your debt because you're not responsible for as much interest on a shorter loan. You can also extend the life of the vehicle by following a routine maintenance plan. To get an idea of what your monthly payment on a loan may be, use our calculator.

• Pay a 20% down payment
• Finance the vehicle for 4 years
• Keep your auto expenses to less than 10% of your income