Most people who are in the market for a used car, also are in the market for a loan. And though most people know that used car loans can have a higher interest rate, there are options to get a used car loan at low interest rates. Some alternatives to getting low interest car loans require you to be a little more creative, others are as easy as walking into a credit union and asking for one. And while low interest used car loans are not easy to always uncover, it’s important to remember that they do exist. You just have to know where to look.

One of the easiest and often most overlooked places to get a low interest used car loan is at a credit union. Since credit unions are typically member owned, they don’t have the same profit motivations and objectives as larger commercial banks do. Many credit unions even offer similar loan products that larger banks do, but since credit unions are in the business of protecting its members it can pass on the profit it would have made to its members in the form of low interest rates. You may also be able to get a used car low interest rate particularly if you have bad credit. This is often the case when a credit union member has been banking with the institution for a long time.

Not a member of a credit union?

Its possible that you work in an industry which would automatically grant you access. There are some industries like telecommunications, government, food service and the like which have member run credit unions. So if you are unsure, check online or ask your local HR.

Another way to locate low interest used car loans are from smaller local banks. These are banks which may only have one or two branches in your entire area. Smaller banks typically have less overhead, so in turn they have no need to mark up products like loans, in the way larger financial institutions would. And if you live in a major city, consider doing a bit of research and locating a smaller town nearby with a local bank. You may not only find friendlier more one on one service, but typically you’ll find cheaper and more customer friendly financial products like low interest used car loans.

Another creative way to get a low interest car loan is to go through a family member. Now most people do shy away from asking a relative for a car loan. But in today’s times, you can negotiate good terms and even sign a promissory note and set up payments via a web based service. The promissory notes are real and the terms are enforceable. With a relative, you would be able to set up a low used car interest rate and make payments via the web based service, just as you would a bank. This also could help keep good relationships in tact by making the transaction professional and legitimate.

So remember when it comes to used low interest rate car loans you have many options from the traditional to the creative.

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