<10k Auto Loans?

[Mike]

What is the general idea behind avoiding auto loans under 10k? If the interest rate is low enough, is there a decent chance of making one work in your favor?

Would I see better results going with a low-interest auto loan through my bank, or paying the higher insurance a dealer would demand (on top of their financing options)?

[Warriorbird]

State employee credit union 'basic transportation' loans are some of the better loans you can get at those levels and they don't mess people up with bad credit too much when they're issued or in rates.

"We finance!" type car lot loans can be horrific, with rates up to 19% in some cases.

It depends on what you're getting.

[Mike]

The private auto loan through Chase suggests around 4-8%, so I guess that would be better?

[Warriorbird]

The private auto loan through Chase suggests around 4-8%, so I guess that would be better?

Seems solid. Have you selected a vehicle yet? If not, don't tell them and have them run you at the dealership. Go with what seems better then. For my last car Ford offered me a terrible deal so I went with a credit union through my ex. If you're not buying from a private seller I'd always visit a bank beforehand.

[AnticorRifling]

On my car the dealership could get me 7%, my bank (PNC) got me a 4% rate. Mine wasn't a sub 10k loan if that even matters.

[Mike]

Thanks for the info!