Others have no prepayment penalties. When choosing your loan, you can often decide to pay interest on the loan using a fixed or variable rate. The rate on a variable rate auto loan is determined by the index that the loan's interest rate is tied to, plus a percentage margin above the index that the financial institution uses. If you want a variable rate auto loan, ask how often the rate you pay is adjusted. However, the fixed rate is generally higher than the initial rate on a variable rate loan, because there is no risk that the rate will change.
Dealers often offer lower financing rates than most financial institutions.
However, these low rates are often designed to stay in effect only for short periods before jumping to a higher rate. Also, many dealer loans are only available on slower-selling models. And BECU has a new auto dealer financing program, Prime Alliance. Prime Alliance was designed by BECU to make your auto loan process even easier. When you find the vehicle you want at a participating dealer, you won't have to travel to the Credit Union for a loan decision.