bank rates

Finance A New Car For Just 2.39%, With No Down Payment Or Application Fees

The nation’s seventh-largest credit union is offering some of the cheapest new-car loans we’ve seen this summer, and they’re available to borrowers nationwide.

Chicago-based Alliant Credit Union is charging as little as 2.39% APR for up to 60 months.

That’s two percentage points below the average cost for 5-year auto loans, according to our national survey of lenders.

If you borrow $20,000 at 2.39% APR for 60 months, your monthly payment would be $353.

That would save you about $14 a month over the average auto loan, or more than $800 over the full five years.

Alliant will also allow you to finance up to 100% of your vehicle purchase, and there is no application fee for auto loans. You can submit an application online and get your loan the same day.

We think you’ll have a difficult time finding a better deal.

But go ahead and search Bankrate’s database of the best auto loan rates from other lenders in your area.

You can use this auto loan calculator to help figure out how much your monthly payment would be on any new car or truck.

Alliant’s rates for used-car loans also caught our eye.

It’s charging as little as 2.64% APR for used-car loans. That’s much lower than the national average of 5.21% for 36-month loans on previously owned vehicles.

Of course, you must join Alliant to enjoy these low rates.

Membership is open to anyone who lives or works in the Chicago area or belongs to a qualifying organization. Find a full list on the credit union’s membership eligibility page.

If you don’t meet any of those requirements, you can still join by making a donation of at least $10 to the organization Foster Care to Success.

After you join, you can shave an additional four-tenths of a percentage point from these loan rates by having your car payments automatically deducted from an Alliant checking or saving account.

Keep in mind that it’s always a good idea to put at least 20% down on a new car, even if it isn’t required. Then the instant depreciation of driving a new car off the lot won’t put you upside down in your car loan – you won’t end up owing more than the car is worth.

Having an idea of how much you’d pay for a loan at a bank or credit union means you can bargain better with a car dealer’s finance manager.

Either the dealer has to beat the loan terms, or you can go with Alliant. Either way, you’ll know you’re getting a good deal

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