Drive away with a Nationwide new- or used-car loan for 3.25%
By: Margarette Burnette, July 24th 2013
Nationwide Bank has one of the best auto loan financing deals of the summer, with interest rates as low as 3.25% on 60-month new- and used-auto loans.
That’s much lower than the national average for a new-car loan, which is 4.09% APR for five years, according to our latest national survey of auto lenders.
If you borrow $20,000 for a 60-month used-car loan at 3.25% APR, the monthly payment comes out to about $362 per month.
If you financed at the national average of 4.09% for 60 months, your monthly payment would be higher, about $369 a month.
The cheaper financing from Nationwide Bank, which is owned by Nationwide Insurance, would save more than $400 over the life of the loan.
But what really got our attention are Nationwide’s low rates for used-car loans. Preowned autos and trucks can qualify for the same APR as new auto loans, 3.25% APR for 60 months.
It’s rare for a lender to charge the same rate on financing both new and used autos. Most banks charge higher rates for used cars. In fact, our survey shows that the average for preowned auto loans is 4.67% APR, and that’s only up to 36 months.
Search our database of the best auto loan rates from several other lenders in your area to see if you can find a better deal.
Then, you can use our auto loan calculator to help you budget your monthly payment.
These low APRs include a 1 percent discount that Nationwide customers receive when they sign up to make automatic bank loan payments, also known as ACH payments.
You’ll need to have excellent credit to qualify for the lowest rates. There are no hard-and-fast rules for determining what “excellent” means, but if your FICO credit score is much lower than 740, you may not get the best rate.
Knowing about a deal like this makes it much easier to judge any loan you’re offered by a dealership’s finance manager.
If he or she can beat Nationwide’s terms, then you’re driving home with a real bargain. If not, you’ll still know about the bank’s deal.
Don’t worry if you haven’t picked out a car or truck yet. You can still apply to be preapproved for a new- or used-auto loan from Nationwide.
If you’re planning to buy a new car soon, our 5 simple steps to the best deal on a new car or truck can help you shop with confidence.
If you’re in the market for a preowned auto, take advantage of our 10 smart moves for buying a used car. We can help you avoid the pitfalls of the used-car market and find an affordable, reliable ride.