The interest rate for an auto loan is not a hard and fast rule, but it's basically a "lower is better" concept. The interest rate you'll receive for an auto loan is driven primarily by four different factors:

1. Credit score of the borrower: Borrowers with higher credit scores will qualify for lower interest rates. The lowest interest rate is given to borrowers with a credit score of 740 or higher. Additionally, a 0.25% discount is given to borrowers with an 800 credit score or higher.
2. Term of the auto loan: Shorter term loans will have a lower interest rate than longer term loans. CapEd offers loan terms from 12 months up to 96 months depending on qualifications. The lowest rate is offered on loan terms up to 60 months.
3. Age of the vehicle: Vehicles older than 10 model years will have a higher interest rate than those that are newer.
4. Loan-to-value: The more money you put down when purchasing a vehicle, or the more equity you have when refinancing a vehicle can lower your interest rate. The lowest rate is available for loans that do not exceed 90% of the vehicle's value.

Most often, when you apply for financing at the dealership, they will be sending that loan to third-party lenders as they generally don't directly finance your vehicle purchase in-house. There are three primary types of lenders they send your loan to for approval: Credit Unions, Banks, and franchise dealerships can send to their brand's financing department, such as Toyota, Subaru, etc.

For A+ borrowers – with credit scores 740 and higher – you have many financing options to choose from and at different times throughout the year the large brands will run financing promotions that can be extremely attractive.

If you're a member of a credit union, you can always ask for your loan to be sent to your own credit union. Be sure to mention you are a CapEd member and that you would like your loan to be sent to CapEd.

Getting pre-approved for a vehicle purchase is very similar to getting pre-approved to purchase a home. When you apply for the auto loan our Lending Team will pull your credit report and determine the amount you can borrow based on your loan qualification and any down payment or trade-in equity you have available to contribute to the purchase.

Once you are approved, you can shop for a vehicle within the loan amount provided in your preapproval. One thing to keep in mind is that the purchase price of the vehicle is not the only cost you must budget for within your pre-approved loan amount. You will need to factor in taxes and any additional products/services such as Total Loss Protection, Extended Warranty, and other maintenance/protection plans.

Credit unions provide many types of consumer loans including auto loans. We offer multiple options within our auto loans for all borrowers' needs, including purchase from a dealership, purchase from a private-party seller, first-time buyer options, refinancing loans, and lease-buy outs.

When you apply at our Credit Union, we will pull your credit report and qualify you for the best option that helps you achieve your financial goals.

You certainly can! If you're using a CapEd Auto Loan to purchase your next vehicle from a private-party seller, we provide a private party checklist to help guide you through this process. Contact us to get started today.

CapEd also offers Boat, RV, and Powersport Loans to our members with dealership financing, pre-approval, and refinancing options available. Go out and play this season with a CapEd Recreational Vehicle Loan.

You can use the Quick Apply widget in eBanking, start a vehicle loan application online, call us at (208)884-0150, or speak to a teller at any CapEd branch.