State Farm Bank has some merry bargains on auto loans

Signing an auto loan contract.

State Farm Bank has some of the best auto-financing deals around this holiday season, with rates as low as 2.34% APR for up to 48 months on a new-car loan.

The bank is affiliated with State Farm insurance, the country’s largest car and home insurance company, and it offers auto loans across the country.

State Farm’s 2.34% rate is much lower than the national average for new-car loans, which is 4.15% APR for four-year loans, according to our latest national survey of auto lenders.

If you borrow $15,000 at the national average interest rate for four years, you would end up paying $1,305 in interest over the life of the loan. But finance a 48-month, new-car loan at the more affordable rate of 2.34% APR, and the total amount of interest is only $729.

Search our database of the best auto loan rates from scores of 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 find what the monthly payment would be.

Sign up to make automatic bank loan payments (also known as ACH payments) through a State Farm account, and the rate could be even lower. There’s an additional 0.15% APR discount for these automated payments.

State Farm Bank does not have branch offices, so you have to contact a State Farm agent to apply.

Average new-car loan rates

Term Interest rate
36 months 4.10%
48 months 4.15%
60 months 4.24%

There is no application or origination fee. You’ll need to have excellent credit to qualify for the lowest rates, and you have to borrow at least $5,000.

If the loan is paid in full within 12 months, there is a $100 prepayment penalty.

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 State Farm Bank’s terms, then you're driving home with a real bargain. If not, you’ll still know about the bank’s deal.

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.

You can follow Interest.com on Twitter and Facebook.

  • john smith

    State Farm is sad and filled with woe

    Edward Rust is no longer CEO

    He had knowledge, but wasn’t in the know

    The Board said it was time for him to go

    All American Girl starred Margaret Cho

    The Miami Heat coach is nicknamed Spo

    I hate to paddle but don’t like to row

    Edward Rust is no longer CEO

    The Board said it was time for him to go

    The word souffler is French for blow

    I love the rain but dislike the snow

    Ten tosses for a nickel or a penny a throw

    State Farm is sad and filled with woe

    Edward Rust is no longer CEO

    Bambi’s mom was a fawn who became a doe

    You can’t line up if you don’t get in a row

    My car isn’t running, “Give me a tow”

    He had knowledge but wasn’t in the know

    The Board said it was time for him to go

    Plant a seed and water it to make it grow

    Phases of the tide are ebb and flow

    If you head isn’t hairy you don’t have a fro

    You can buff your bald head to make it glow

    State Farm is sad and filled with woe

    Edward Rust is no longer CEO

    I like Mike Tyson more than Riddick Bowe

    A mug of coffee is a cup of joe

    Call me brother, don’t call me bro

    When I sing scat I sound like Al Jarreau

    State Farm is sad and filled with woe

    The Board said it was time for him to go

    A former Tigers pitcher was Lerrin LaGrow

    Ursula Andress was a Bond girl in Dr. No

    Brian Benben is married to Madeline Stowe

    Betsy Ross couldn’t knit but she sure could sew

    He had knowledge but wasn’t in the know

    Edward Rust is no longer CEO

    Grand Funk toured with David Allan Coe

    I said to Shoeless Joe, “Say it ain’t so”

    Brandon Lee died during the filming of The Crow

    In 1992 I didn’t vote for Ross Perot

    State Farm is sad and filled with woe

    The Board said it was time for him to go

    A hare is fast and a tortoise is slow

    The overhead compartment is for luggage to stow

    Beware from above but look out below

    I’m gaining momentum, I’ve got big mo

    He had knowledge but wasn’t in the know

    Edward Rust is no longer CEO

    I’ve travelled far but have miles to go

    My insurance company thinks I’m their ho

    I’m not their friend but I am their foe

    Robin Hood had arrows, a quiver and a bow

    State Farm has a lame duck CEO

    He had knowledge, but wasn’t in the know

    The Board said it was time for him to go

    State Farm is sad and filled with woe