Auto Loan
Table of Contents
Auto Loan
An auto loan is a financing agreement between a borrower and a lender (usually a bank, credit union, or dealership) in which the lender provides funds to help the borrower buy a car. The borrower then repays the loan in monthly installments, with interest, over a set term.
How It Works:
1. Loan Amount: You borrow a specific amount based on the vehicle price.
2. Down Payment: You may pay part of the price upfront (usually 10%-20%).
3. Interest Rate: The lender charges interest, based on your credit score.
4. Monthly Payments: You repay the loan over time (typically 36–72 months).
5. Collateral: The vehicle itself acts as collateral—if you stop paying, the lender can repossess it.
Example:
∙ You want to buy a car for $20,000.
∙ You put $2,000 down.
∙ You finance $18,000 over 60 months at a 6% APR.
∙ Your monthly payment would be around $348.
Top Auto Loan Options in Illinois:
1. DuPage Credit Union
∙ Starting APR: 4.40%
∙ Loan Terms: Up to 84 months
∙ Loan Amounts: $500 – $150,000
∙ Highlights: No prepayment penalties, 30-day rate lock, and financing available for new and used vehicles, motorcycles, boats, and RVs. www.datatrac.net+6DuPage Credit Union+6LendingTree+6Barron's+25LendingTree+25Default+25
2. Alliant Credit Union
∙ APR: Competitive rates that beat industry averages
∙ Loan Terms: Up to 84 months
∙ Highlights: Offers a 0.50% rate discount when using their Car Buying Service, same-day approval in most cases, and no prepayment penalties. glcu.org+15Alliant Credit Union+15The US Sun+15IECUMember+10LendingTree+10Alliant Credit Union+10
3. Great Lakes Credit Union
∙ Starting APR: 4.99%
∙ Highlights: Provides competitive interest rates, affordable loan payments, and rate discounts. Default+3www.datatrac.net+3Bankrate+3Bankrate+2glcu.org+2Credit Union 1+2
4. Credit Union 1
∙ Starting APR: 5.49%
∙ Loan Terms: 36 to 84 months
∙ Highlights: Offers auto loans with a $5,000 minimum loan amount, a minimum 36- month term, and a floor rate of 5.49% APR.
Investopedia+22LendingTree+22centralcu.org+22Credit Union 1
5. Illinois Educators Credit Union
∙ Starting APR: 4.49%
∙ Loan Terms: Up to 60 months
∙ Highlights: Provides auto loans for new 2025-2024 models with competitive rates. IECUMember
6. Northern Illinois Federal Credit Union
∙ Rate Match Guarantee: Will beat a competitor's rate by 0.10%
∙ Highlights: Offers pre-approval to help you stay within your budget and avoid surprises later. mynifcu.com
7. Central Credit Union of Illinois
∙ Starting APR: 5.59% for 2023-2025 models (75 months)
∙ Highlights: Provides up to 110% financing and fast online approvals for qualified members. centralcu.orgU of I Community Credit
Union+2centralcu.org+2www.datatrac.net+2
8. Scott Credit Union
∙ Starting APR: 5.49% for 60-month loans on 2026-2024 vehicles
∙ Highlights: Rates are subject to change and are based on the term of the loan, model year of the vehicle, as well as your credit history. mynifcu.com+12Scott Credit Union+12Credit Union 1+12
9. Financial Plus Credit Union
∙ Starting APR: 4.99%
∙ Highlights: Offers competitive auto loan rates and a variety of financial services. Bankrate+2Default+2glcu.org+2Alliant Credit Union+2U of I Community Credit Union+2LendingTree+2
10. Tech Credit Union
∙ Loan Terms: Up to 84 months
∙ Financing: Up to 115% with nothing down
∙ Highlights: Provides competitive loan rates and options to refinance higher interest rate loans. Investopedia+7LendingTree+7DuPage Credit Union+7Default+1Alliant Credit Union+1
Tips for Securing the Best Auto Loan
∙ Check Your Credit Score: Higher credit scores often qualify for better interest rates. ∙ Get Pre-Approved: This can give you a better idea of your budget and strengthen your negotiating position.
∙ Compare Offers: Don't settle for the first offer; compare rates and terms from multiple lenders.
∙ Consider Loan Terms: Longer terms may have lower monthly payments but can result in higher total interest paid.
∙ Read the Fine Print: Be aware of any fees, penalties, or conditions associated with the loan.
