bank rates

Chase Car Loans Start At Less Than 2%

Chase Bank has some of the cheapest car loans around this winter with the lowest reserved for the bank’s checking account customers.

It’s offering 48-month new-car loans for as little as 1.93% APR, and 60-month loans starting at 2.04% in many parts of the country.

That’s more than two percentage points less than the current average cost of those loans and half a point less than Chase was charging just last spring.

Chase offers its best rates for checking account customers with excellent credit who sign up to have their auto loan payments automatically deducted from their account.

If you borrow $23,000 at 2.04% with a 5-year loan, the monthly payment is $403. Borrow that same $23,000 for five years at the average rate of 4.07%, and the monthly payment rises to $424.

The Chase rate saves $21 a month, or $1,260 over the entire length of the loan.

Borrowers who don’t have a checking account and the option for automatic payments, pay a half-point more, or around 2.43% APR for a 48-month new-car loan and 2.54% APR for a 60-month.

That’s still a very good deal and only adds about $5 a month to your payments.

You can use this auto loan calculator to figure out the monthly payments for any loan you might be considering.

It will also help you see how the length of the loan and the amount you put down will affect your monthly payment.

Chase assumes a 20% down payment in order to get their advertised rates.

Of course, it’s always a good idea to put at least 20% down on a new car, because 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.

Indeed, that’s part of the 20/4/10 rule – a very useful way to figure out how much you can really afford to spend on a new car or truck. It says you should put at least 20% down on a vehicle, finance it for no more than four years and not let your total monthly vehicle expense exceed 10% of your gross income.

The loan terms for this deal vary by location, so you have to go to Chase’s online rate chart and plug in your ZIP code for specific information.

We noticed, for example, that rates for Chicago ZIP codes feature the 1.93% APR for 4 years, but the lowest promotional rates for Florida ZIP codes are slightly more, at 2.13% APR for 4 years.

The nation’s largest bank by assets is also the fourth-largest biggest source of new car and truck loans.

Loans are available in the 29 states – and Washington, D.C. — where Chase has branches: Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington and Wisconsin.

You can apply at a branch, online or by phone.

Keep in mind that getting preapproved for a loan and having an idea of how much you’d pay allows you to negotiate more effectively with a car dealer’s finance manager. Either the manager beats the low rate, or you can go with Chase Bank’s offer.

Whichever you choose, you’ll know you’re going to get a good deal.

Search Bankrate’s database of the best auto loans from other lenders in your area to see if you can beat Chase’s rates.

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Comments (1)
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One Existing Comment
  1. Wes said:
    on January 23rd at 05:47 am

    You can do even better at local credit unions. I took advantage of a 1.47% car loan from over the summer, a rate they still offer. It was 5 years and very little down (5%?) – you could of course put more down and take a shorter term.

    I found out later that USAA offered something like 0.5% if you go through their car buying service, but I don’t know if you lose much on a negotiated car price. (I didn’t find the offer until after purchasing.)