Buy a car
Be in the driver seat
Buying your first car to get you around town? Need a bigger vehicle for your growing family? No matter your needs, First Federal can help find the right auto loan for you. With extremely quick approval timelines and competitive market rates, our car loans can place you in the driver seat.
Already have your dream car? We offer loan refinancing options to save you money each month.
Benefits
- Hassle-free experience - Your loan can be used to buy a new or used vehicle, with a loan length of up to 72 months. You’ll avoid hassling with dealers over rates and payments, and there’s no penalty for paying off the loan early.
- Quick pre-approval - Get pre-approved in 24 hours!1
- Interest rate deduction - You’ll get an extra 0.25% rate discount when you make payments from a First Federal checking account.
- Free value check - Used car shoppers can secure loans up to 72 months (term restrictions based on age of vehicle) and we offer a free used car value check so you feel safe driving off the lot.
1Our pre-approvals usually take 24 business hours and exclude Saturdays and Sundays.
2Annual Percentage Rate (APR) as low as 6.50% available, subject to credit approval. For a $25,000.00 auto loan with a term of 60 months and a 6.67% APR, the monthly payment will be $491.21, and the final payment will be $491.42. The example assumes the borrower has an eligible First Federal Bank of Kansas City checking account for the automatic loan payment (ALP) 0.25% rate discount. “As low as” APR available for auto loans with a term of 60 months or less, loan amount of $10,000 to $29,999, loan-to-value (LTV) percentage of 100% or less, and an applicant with a credit score of 660 or higher. Loan payment and APR will vary based on the term, loan amount, vehicle age, LTV percentage, credit history and applicable fees. Programs, offers, rates, terms, and conditions are subject to change and expiration without notice and vary based on creditworthiness, qualifications, collateral, and loan terms. Rates effective as of 04/01/2024.
Learn more about car loans
If you’re unfamiliar with car loans, review our frequently asked questions below or contact our lending team!
What are car loans?
A car loan is often a secured loan that is used to purchase your desired vehicle. The vehicle serves as collateral for the loan. If you default on your repayments, the lender can seize, or repossess, your automobile. Car loans are often repaid in installments. The lender retains ownership over your vehicle until you completely repay the car loan, similar to a mortgage.
What is the difference between a secured and unsecured car loan?
Car loans can be offered as a secured and unsecured loan. As mentioned previously, a secured loan requires the borrower to put up collateral until the loan is paid in full. If you fail to make your payments, then the lender can repossess your vehicle. Secured loans tend to have lower interest rates, higher borrowing limits and longer repayment options (or terms).
Unsecured car loans require no collateral as it’s simply a line of credit. The rate issued to you is based on your credit score. If you fail to make your payments, your debt is sold to a collection agency since there’s no collateral for the lender to seize. These tend to have higher interest rates because they pose more risk to the lender. Unsecured loans may also be called personal loans.
How do car loans work?
When you are approved for a loan, you receive your money in a lump sum which is determined by your credit score and other factors through the application process. Then you’ll pay it back over time. The length often depends on what terms are available and which one fits your budget. The amount you borrow, the time you take to repay the loan, and your interest rate all determine your monthly payment.
- Loan amount. The loan amount, also known as the principal, can be the total cost of the car or can be less. The loan amount depends if you’re making a down payment or trading in your old vehicle.
- Annual percentage rate (APR). Your APR is your effective interest rate you pay on your loan. Think of it as your interest rate stated as a yearly rate. The APR can include fees that you’ll pay for, such as origination fees.
- Loan term. This is the amount of time you have to pay back your loan. Terms can range from 36 to 72 months.We've got your back
Our lending team is ready to answer questions and help you with your car loan today.
Should you buy or lease?
Ultimately, it comes down to your financial goals and priorities. You should be asking yourself these questions:
- Do I have good credit? If you answered no to this, you should consider buying a car. Leasing often requires a high credit score. Granted, you’ll likely have a higher interest rate, but you can usually get a car loan.
- Will I be driving a lot of miles? If you answered no to this, you should consider leasing a car. Leases will have a limited number of miles you can drive in that car. If you exceed that limit, you’ll have to pay a fee that you agreed upon. However, if you don’t drive often this won’t be a problem.
- Do I want to be driving the latest car models? If you answered yes to this, you should consider leasing your car so you can enjoy a new car every few years.
- Do I have a tight budget? If you answered no to this, consider buying a car since your budget can accommodate your monthly car payments. Lease monthly payments are usually lower.
Where can you get car loans?
- Banks. Banks are established lenders who tend to be more reliable than other lenders. Your primary bank likely offers car loans. Consult your bank and discuss what options are available.
- Car dealership. If you’re purchasing your car from a dealer, they likely offer a payment plan. Dealers often offer “low or zero-percent financing”, which means low or no interest rate. However, those deals are typically meant for buyers with good credit score. Be sure to ask questions about your payment options and consult your budget.
- Credit unions. Credit unions can offer competitive rates and a personalized experience compared to large, national banks. There may be requirements that you must meet in order to join a credit union. Be sure to ask that credit union if you’re eligible.
Can you get a loan for a leisure vehicle?
Looking to buy a motorcycle for the open road? Need a boat for the lake? Camping in the great outdoors with your family? We offer auto loans for motorcycles, boats, and RVs! Contact our team to discuss loan options today.
We've got your back
Our lending team is ready to answer questions and help you with your car loan today.
Can I afford a car loan?
Use our car loan calculator to determine how much you’ll need to borrow and what your monthly payment will be. Feel free to contact our consumer lending team with your questions.