If you’re thinking about buying a car this summer, understanding car loans is more important than ever. As of July 2025, there are a few key things to keep in mind to make sure you get the best deal possible — and MMCCU is here to help you navigate it all.
Interest rates for car loans have been holding steady, meaning loans might cost a bit more than in years past. Your credit score plays a big role in the rate you’ll qualify for, so it’s a good idea to check your credit before you start shopping. If your score is in great shape, you could qualify for lower rates and save money over the life of your loan.
Good news for buyers looking for deals: some automakers are offering special 0% APR financing on select 2024 and 2025 models to clear out inventory. These offers often require excellent credit and may only be available for certain models or loan lengths. So, it’s smart to check with your dealership and make sure the deal fits your budget and needs.
Another exciting update for 2025 is a new tax deduction available for buyers of new vehicles assembled right here in the U.S. This deduction allows you to deduct a portion of the interest you pay on your auto loan, which can lead to real savings — especially if you’re financing a vehicle with higher interest. Just remember, this doesn’t apply to imported cars, so it’s worth confirming which models qualify.
Car prices overall have been climbing, partly due to tariffs and inflation. This means used cars might be pricier too, which could impact how much you want to borrow. On the bright side, dealerships currently have plenty of 2024 models on the lot, so you might find good incentives and rebates this summer.
If you’re considering a longer loan term to keep monthly payments lower, it’s important to weigh the pros and cons. While longer terms can make payments more affordable, they can also mean paying more interest over time and possibly owing more than the car is worth. (Learn more about protecting your vehicle with extended warranty coverage through MMCCU.)
For those with less-than-perfect credit, don’t worry. There are options available, and working with MMCCU means you’ll get personalized guidance tailored to your situation. Making a larger down payment or having a cosigner can also improve your loan terms.
One great way to prepare is by getting prequalified with MMCCU. This simple step lets you see what kind of rates you qualify for without impacting your credit score. It also makes the buying process smoother because you’ll know your budget upfront.
Thinking about electric vehicles? Keep in mind that federal EV tax credits have changed in 2025, and new fees have been introduced for EVs and hybrids. Some electric models still come with special financing offers, so if you’re interested in going green, be sure to ask about the latest deals.
Finally, timing your purchase around July sales events or year-end clearance deals can help you score better prices or incentives. And always read the fine print — low rates sometimes come with conditions like specific trims or shorter loan terms.
At MMCCU, we’re dedicated to helping you find the right car loan with terms that fit your lifestyle and budget. Whether you’re buying new or used, electric or gas-powered, our team is here to guide you every step of the way. Ready to get started? Reach out today to see how MMCCU can help you drive away happy.