Finding the best loan for my first
Car
A Comprehensive Analysis of Used Car Loan Options
By Blake Miles 2/26/25
My First Car
●
●
●
●
●
●
Car Model: 2015 Kia Soul +
Price: $7,900
Mileage: 100,556 miles
Location: Knoxville, TN
Dealer: Knox Auto House
I selected this vehicle because it is cheap and it is in good shape.
My Bank Options
●
Bank Option:
● Bank: Capital One Auto Finance
● APR: Depends on credit profile
● Loan Amount: Starting at $4,000
● Terms: 24 to 84 months
My Credit union options
Credit Union Option:
●
●
●
●
Credit Union: PenFed Auto Loans
APR: Starting at 4.44%
Loan Amount: Up to $150,000
Terms: 36 to 84 months
My Calculations
●
●
●
●
●
●
Loan Amount: $7,900
Term: 60 months
APR (Bank): 6%
Monthly Payment (Bank): $152.76
APR (Credit Union): 4.44%
Monthly Payment (Credit Union): $147.01
Comparing Loan Options
●
●
Bank Loan:
● Monthly Payment: $152.76
● Total Interest Paid: $1,265.60
● Total Amount Paid: $9,165.60
Credit Union Loan:
● Monthly Payment: $147.01
● Total Interest Paid: $920.60
● Total Amount Paid: $8,820.60
My Best Option
● Best Loan Option: PenFed Auto Loans
● Reason: Lower APR and total amount paid over the loan term.
● I think the Kia will be a good car because it is cheap and it only has
100,000 miles which would mean it might last until I can save up to get a
new car.
Work-Cited Page
● Sources:
● CARFAX for used car information
● Capital One Auto Finance details
● PenFed Auto Loans details