State Farm Bank has some merry bargains on auto loans
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
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.