Auto LoansAuto Lender Reviews

GEICO Auto Loan Review

The Government Employees Insurance Company (GEICO) doesn’t just offer car insurance. GEICO auto loans are also available from the company’s credit union to its members.

GEICO Federal Credit Union is merging with Baxter Credit Union (BCU), but still offers its membership new and used car loans, as well as auto refinancing. While almost anyone could get GEICO auto insurance, its car loans may be best for those who already bank with GEICO FCU or might want to. This includes GEICO associates and their families, plus employees of dozens of other partner companies and residents or workers in five Illinois counties and Kenosha County, Wisconsin.

GEICO auto loans at a glance

If you’re interested in shopping for and buying a new car all in the same place, GEICO Federal Credit Union offers an extremely competitive starting rate. While its lowest rate is specific to its car-buying service, the disadvantage of using a car-buying service is that you might be able to find lower car prices on your own. Still, even without the car-buying service, borrowers are eligible for low rates on auto loans that can be used to finance or refinance cars up to 10 years old with 100,000 miles.

GEICO Auto Loans
Starting APR* 2.14%
Starting APR* through the GEICO auto-buying service 1.64%
Terms 0 – 84 months
Amounts up to 100% financing
Requirements GEICO FCU membership

*Includes an autopay discount and assumes you meet two out of three of the following: Receive a monthly direct deposit of at least $500, hold a $25,000 deposit or hold another loan product, such as a home mortgage or credit card, in good standing with the credit union.

GEICO finances up to 100% of the cost of your car (meaning you might not have to make a down payment). It also provides private party auto loans and auto loan preapprovals.

GEICO rate discounts and cash rebates

In addition to the APR discounts in the chart above, you may also be able to get a rebate or other discount through GEICO or its parent, Baxter Credit Union (BCU).

  • A $350 cash bonus is available to GEICO associates and their families for auto loans of $10,000 or more.
  • Rate discount for a hybrid or electric vehicle: If you didn’t meet the APR discount criteria above, you may still qualify for a 0.50 percentage point discount if the car you’re financing is a hybrid or electric vehicle. This is advertised to BCU members, so GEICO members should inquire about their eligibility.

GEICO car buying

As we mentioned earlier, the lowest possible GEICO auto loan rates go to borrowers who buy a brand-new vehicle through the credit union’s car-buying service, powered by online auto marketplace TrueCar. TrueCar promises credit union members a break on car prices, and it does the negotiating for you, which does save you a lot of legwork. Still, it’s possible you could negotiate the same or better deal on your own at dealers of your choosing.

Here’s how it works: Search for vehicles online, and dealerships in the TrueCar network in your area vie for your business. Know that by using the service, you’re giving out your personal contact information to dealers, who will frequently reach out to you.

Is a GEICO auto loan worth it?

If you qualify for membership with GEICO FCU, it could be worth it to apply for a GEICO auto loan, especially if you’re looking to bank with the credit union. Customers who use direct deposit or have another loan with the bank benefit from rate discounts.

If you don’t qualify, don’t worry — there are other lenders that offer low rates. You can check out our list of some of the best credit unions for car loans.

GEICO Federal Credit Union membership requirements

You could become a GEICO FCU member based on your employer, where you live or whether a family member is already a current GEICO FCU member. BCU has the same requirements.

  • Employer: GEICO FCU has a list of nearly 90 partner employers, including Beltone, Target, Verizon California — and, of course, GEICO. Here’s a full list.
  • Community: If you live or work in one of six counties — Lake, McHenry, DuPage, Kane or Cook County (north of 95th Street on the south side of Chicago) in Illinois, or Kenosha County, Wisconsin — you may qualify.
  • Family: If you are a family member of an existing GEICO FCU member related by blood, marriage, fostering or adoption, you may qualify. Eligible family members include: Spouses, parents, children, siblings, domestic partners, grandchildren, grandparents, aunts, uncles, nieces, nephews and cousins.

Pros and cons of a GEICO auto loan

Highlights of a GEICO car loan

 Low APRs: GEICO offers some of the lowest starting auto loan APRs on the market, including discounts.

 Car-buying program: The GEICO auto-purchasing program may help you save time and money. You might save on the price of the car, as well as the price of your loan.

Lowlights of a GEICO car loan

 Strict membership requirements: Other credit unions may have more flexible ways to join. Consumers Credit Union, for example, also offers low rates and only requires that you make a one-time $5 payment to the Consumers Cooperative Association.

 Fees: Depending on your state, you may have to pay fees when getting a GEICO auto loan. However, there are no fees for car refinance loans.

 Few branches: GEICO only has 10 locations, but that number will eventually increase to around 30 with the merger and the opening of two new branches. Still, if you prefer to talk to a banker face-to-face, you may have to drive for a while.

How to apply for GEICO car financing

To apply for a car loan from GEICO FCU or BCU, you could go to a branch, visit the website or call 888-389-8344. You’ll be asked to provide the following information:

  • Name and address
  • Birthday
  • Social Security number or Tax Identification number
  • Member number (or membership eligibility)
  • Income and employment
  • Cosigner or co-borrower information, if applicable

GEICO will do a hard credit pull to check your credit score and credit history.

 

Compare Auto Loan Offers