Geico Auto Loan Review
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.
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 Credit Union is a division of 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 CU 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 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* through the Geico auto-buying service||1.64%|
|Terms||0 – 84 months|
|Amounts||up to 100% financing|
|Requirements||Geico CU 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. Read More
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 CU, 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.
Geico Credit Union membership requirements
You could become a Geico CU member based on your employer, where you live or whether a family member is already a current Geico CU member. BCU has the same requirements.
- Employer: Geico CU 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 CU 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 CU 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
- 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.