Capital One is offering some of September’s best deals on car loans to borrowers nationwide.
The McLean, Virginia-based bank is charging as little as 1.99% APR on financing for up to 60 months.
That’s more than 2 full percentage points below the average cost for 5-year auto loans, according to our national survey of lenders.
If you borrow $20,000 at 1.99% APR for 60 months, your monthly payment would be around $350.
That would save you about $22 a month over the average auto loan, or more than $1,320 over the full five years.
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.
Capital One’s rates for used-car loans also caught our eye.
It’s charging as little as 2.89% APR for used-car loans, which is way below the national average of 5.21% for 36-month loans on previously owned vehicles.
The bank only finances vehicles for personal use and won’t provide loans for some brands that have been discontinued or no longer sold in the United States — Oldsmobile, Daewoo, Saab, Suzuki and Isuzu.
But otherwise, you can you apply for a loan amount of up to $40,000 for new and used vehicles.
To get the best rates from Capital One, you’ll need to be borrowing at a term less than or equal to 60 months, put down at least 10% and have “excellent and substantial” credit.
While Capital One doesn’t specify what excellent credit means, an excellent FICO credit score is generally considered 740 or above.
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.
The dealer has to beat the loan terms, or you can go with Capital One. Either way, you’ll know you’re getting a good deal.