1. Home
  2. Car Loans

Best Car Loans in Omaha, NE

Aug. 15, 2019, 8:17 p.m.

Cars are a necessity in Omaha, where close to 100 percent of residents commute by personal vehicles. A car is a substantial financial investment that usually requires a loan. Our partners at ConsumerAffairs researched the best car loans in Omaha to help you get the best rate and know what to expect when you start shopping.

Everyone deserves to make thoughtful, informed purchase decisions. The local guides provided on this website are free for consumers. 3 News Now may receive compensation from our partners. Learn more.

Powered by
×
#1
RECOMMENDED
LightStream

Loans for practically anything!

#1 MOST POPULAR
LightStream
LightStream
Features
  • Apply online
  • Loans from $5,000 - $100,000
  • Visit website for customer service
  • Available in Omaha
Read More
Location
Services available in
Omaha, NE
No phone available
#2
Auto Approve
Auto Approve
Features
  • Online loan calculator
  • Apply online
  • Application approval in minutes
  • Available in Omaha
Read More
Location
Services available in
Omaha, NE
(844) 946-7334
#3
LendingTree
LendingTree
Features
  • Online auto loan calculator
  • Compare rates from multiple lenders
  • Available in Omaha
  • Read lender reviews from other consumers
Read More
Location
Services available in
Omaha, NE
(800) 555-8733
#4
myAutoloan.com
myAutoloan.com
Features
  • Online payment available
  • Find your perfect lender
  • Available in Omaha
  • Interest rate calculator online
Read More
Location
Services available in
Omaha, NE
(214) 540-3350
#5
Capital One
Capital One
Features
  • Check your loan status online
  • Available in Omaha
  • Over 12,000 eligible dealers
  • Auto loan calculators available
Read More
Location
Services available in
Omaha, NE
(800) 689-1789
Omaha Federal Credit Union
Omaha Federal Credit Union
Features
  • M-F: 9am - 5pm
  • Sat: 9am - 12pm
  • Closed Sun
  • omahafcu.org/loans/auto-programs
Location
3001 S. 82nd Ave.
Omaha, NE 68124
(402) 399-9001
Mutual 1st Federal Credit Union
Mutual 1st Federal Credit Union
Features
  • M-F: 9am - 5pm
  • Sat: 9am - 12pm
  • Closed Sun
  • mutualfirst.com/auto-loans
Location
14510 F St., Ste. 101
Omaha, NE 68137
(402) 697-8200
First National Bank of Omaha
First National Bank of Omaha
Features
  • M-F: 9am - 5:30pm
  • Sat: 9am - 1pm
  • Closed Sun
  • fnbo.com/personal-banking/auto-loans
Location
1123 Howard St.
Omaha, NE 68102
(402) 602-2570
Four Points Federal Credit Union
Four Points Federal Credit Union
Features
  • M-F: 8am - 4:30pm
  • Closed Sat and Sun
  • fourpointsfcu.org/auto-loans
Location
510 N. 127th St.
Omaha, NE 68154
(402) 281-1519
SAC Federal Credit Union
SAC Federal Credit Union
Features
  • M-F: 8:30am - 5:30pm
  • Sat: 9am - 12pm
  • Closed Sun
  • cobaltcu.com/personal/loans#auto-loans
Location
310 S. 10th St.
Omaha, NE 68102
(402) 829-6318

How to get an auto loan in Omaha

Omaha skyline

Car loans are available at banks, credit unions, online lenders and Omaha auto dealerships. Some people prefer online lenders, while others want to work with local Omaha banks.

  • To apply for an auto loan, a potential lender generally requires:
  • Proof of identity (photo ID)
  • Proof of residence (utility bill)
  • Proof of income (pay stubs or bank statements)
  • Proof of insurance
  • Financial information on current credit accounts, including other debt

Qualifying for a car loan in Omaha

The main factor that influences whether you get approved for an auto loan is your credit score. It’s helpful to know your credit score before you begin applying for loans.

Your credit score is also the primary factor in the interest rate and annual percentage rate (APR) lenders offer. While APR and interest rate are similar, they not that same. The interest rate is the cost to borrow the principal amount each year, and APR is the interest amount plus other fees and costs of your loan. Your APR and term length determine your total loan cost.

APRs for car loans in Omaha range from 3 to 15 percent. Here are some general guidelines that lenders follow for average auto loan interest rates, according to Experian:

Credit score range Average APR (new car) Average APR (used car)
781 - 850 3.68% 4.34%
661 - 780 4.56% 5.97%
601- 660 7.52% 10.34%
501 - 600 11.89% 16.14%
300 - 500 14.41% 18.98%

Other factors that affect your interest rate:

  • Income: Your potential lender uses your yearly income to calculate your debt-to-income ratio, which tells the lender how much income you spend on rent, utilities and other loans. This helps the lender assess its risk and whether you can afford a car payment. While every lender is different, most prefer a borrower’s debt-to-income ratio to be 40 percent or less.
  • Loan term: A typical car loan in Omaha is three to six years, though some lenders offer shorter or longer loan terms. The longer your loan term, the lower your monthly payments are. The overall loan cost is less on a shorter loan because you’ll pay less interest, however. A good recommendation for loan terms is 60 months for new cars and 36 months for used vehicles.
  • Type of vehicle: Vehicles lose their value quickly, so the older a car is, the higher the interest rate. If you don’t want to buy new, cars that are one to two years old usually have the best rates.

Additional costs to buying a car in Omaha

Besides the purchase price of your car, there are other expenses in the loan and car purchasing process. When you buy a car, you may make a down payment to lower the amount of your loan. A down payment should be at least 20 percent of the purchase price for new cars and 10 percent for used cars. Other additional expenses to account for when buying a car are:

  • State sales tax
  • Title and registration
  • Dealership/documentation fees
  • Insurance
  • Warranties

Pre-qualifying for car loans in Omaha

Getting pre-approved for an auto loan before shopping is the best way to make the process easier. When you get pre-approved, the lender often does a hard credit pull that temporarily lowers your credit score. If you’re considering a few lenders that offer pre-approval, make sure you apply within 14 days. Multiple hard credit inquiries only count as one if completed within a short period.

When you’re pre-approved, you know the rate and the amount you can borrow, which lets you set a budget. Getting pre-approved also familiarizes you with the auto loan process. Knowledge is power when buying a car. Being pre-approved may also help you receive a better APR offer from the dealership or a lower cost on the car by being a cash buyer.

Apply with multiple lenders and compare offers to create competition to get your business. Lenders weigh factors on your credit report differently, and various lenders may make substantially different loan offers. The U.S. Consumer Finance Protection Bureau also has information on comparing car loans.

Getting a car loan with bad credit in Omaha

If you have subprime credit, typically a score of 600 or lower, you may have trouble getting approved for a car loan by traditional lenders in Omaha. Look for lenders that offer auto loans to people with lower credit scores. Keep in mind that loans from these lenders usually have higher interest rates and less favorable terms.

A more substantial down payment makes you more likely to qualify for a car loan, so consider saving money to pay more upfront if possible. If you’re improving your credit score, you may be able to refinance your auto loan in six to 12 months to get a better interest rate and a lower monthly payment. The CFPB also has information about what to expect when shopping for car loans.

LightStream

LightStream

LightStream is a national online consumer lending division of SunTrust Bank. The company offers loans for $5,000 to $100,000, and funds can be made available the same day. The company offers a $100 guarantee that it provides the best loan experience. Omaha customers love how simple it is to apply and how quickly they received funding.

Auto Approve

Auto Approve

Auto Approve is a car loan refinancing company that helps Omaha customers lower their interest rates and monthly payments. Customers can apply on the company’s website and speak to a consultant to discuss their best options. The company receives positive reviews from Omaha car buyers for its easy application process and hardworking consultants.

LendingTree

LendingTree

LendingTree is an online loan broker that allows customers to compare car loan offers from more than 350 lenders, banks and credit partners nationwide. Omaha customers fill out a single application and receive multiple offers to compare. Omaha customers say the helpful staff does a great job explaining the loan process.

myAutoloan.com

myAutoloan.com

myAutoloan.com is an online marketplace that allows Omaha customers to apply for a car loan and receive up to four offers, with funding available as soon as 24 hours after acceptance. The company also works with lenders that specialize in low credit scores. Car buyers in Omaha say they’re delighted with the company’s results.

Capital One

Capital One

Capital One offers a wide range of auto loan options for used or new vehicles. Customers can estimate their monthly car payments, get pre-qualified for a loan or refinance their car loan on the company’s website. Omaha customers appreciate Capital One’s online tools, but the company receives mixed reviews on its customer service.

Our partners independently research and analyze the companies mentioned in our guides and work with subject matter experts to add valuable information that helps consumers make smart purchase decisions. Our partners will not include companies on these guides that do not meet specific quality standards. The compensation we receive from our partners may impact how and where companies appear on our site, including the order in which they appear.

Our partners independently research companies, and use editorial discretion to award companies with special recognition (i.e. Best Value) based on their staff’s judgement or subject matter expert’s judgement. Our partners do this to help you identify companies that will meet your specific buying needs, and do not receive compensation for these designations.