To find the best loan for your auto purchase, comparison shop among the many loan providers: your credit union, your local bank, the car dealership where you’re buying, Internet lenders such as Lending Tree and E-Loan, major national financial institutions such as Citibank and JP Morgan Chase, and car loan specialty companies such as Americredit. In addition, some automakers offer financing through their own lending divisions, as with Toyota’s Toyota Financial Services or General Motors’ GMAC.
Online loan-comparison sites such as Bankrate.com offer calculators that can help you quickly find and compare a number of possible loans. Check the annual percentage rate, term of the loan, and other factors, such as whether you can pay off the loan early without penalty. Evaluate the entire transaction, including any rebates or other special dealer offers, to compare the total you will pay under each loan and make the best decision possible.