Car Loans in Lincoln, NE: What You Need to Know Before You Buy

Buying a car is one of the biggest purchases you’ll make and how you choose to pay for it matters just as much as the car itself. Whether you're looking at a brand-new vehicle or a reliable used car, understanding your car loan options can save you time, money, and stress.

At LincOne Federal Credit Union, we’re proud to help Lincoln drivers make smart, informed decisions about vehicle loans. Here’s what you need to know about auto financing in Lincoln, NE.

How Do I Get a Car Loan in Lincoln, NE?

Getting a car loan doesn’t have to be complicated. Follow these steps:

1. Check Your Credit Score: Lenders use your credit to determine your interest rate. A higher score usually means a lower rate.
    

2. Know Your Budget: Decide how much you can comfortably spend each month. Include insurance, taxes, and maintenance.
    

3. Get Pre-Approved: Visit a local lender—like LincOne—to get pre-approved. This gives you a realistic budget and more power at the dealership.
    

4. Compare Offers: Not all loans are the same. Compare interest rates, loan terms, and fees from credit unions, banks, and dealerships.
    

5. Finalize Your Loan: Once you’ve chosen your vehicle, sign the paperwork and drive away!
    

Is a 3, 5, or 7-10-Year Car Loan Better?

There’s no one-size-fits-all answer—it depends on your goals.

• 3-Year Loan:
  ✔️ Lowest overall interest paid
  ❌ Higher monthly payments
   

• 5-Year Loan (Most Common):
  ✔️ Balanced monthly payments
  ✔️ Good for most new or lightly used vehicles
   

• 7–10 Year Loan:
  ✔️ Lowest monthly payment
  ❌ You may owe more than the car is worth over time
  ❌ Higher total interest
   

If you're buying a used car in Lincoln, keep in mind how long the car is expected to last. You don’t want a 7-year loan on a car that’s already 8 years old.

Is Dealership Financing the Same as a Car Loan?

Not exactly. Dealership financing often looks like a loan but it's really the dealer working with a third-party lender (and sometimes adding fees or markups).

Here’s how it breaks down:

• Dealer Financing: Convenient, but may include hidden fees or higher rates
   

• Direct Loan from a Credit Union: You deal directly with your lender, often at a better rate
   

At LincOne, we offer auto loan pre-approvals so you can walk into the dealership with confidence and avoid financing surprises.

Should I Pay Cash or Finance My New Car?

If you have the money saved up, paying cash is tempting. But financing has its perks, too.

Paying in Full (Cash):

• No interest
   

• No monthly payments
   

• Stronger negotiating power
   

Taking Out a Loan:

• Build your credit
   

• Keep your emergency fund intact
   

• Access low or promotional interest rates
   

What most Lincoln drivers do: Many choose to finance even if they could pay cash—especially when offered competitive rates through a credit union.

How Long Does It Take to Pay Off a Car?

Car loans typically range from 36 to 72 months. Some go longer—but the most common term is 60 months (5 years).

Want to pay off your car faster? Here are a few tips:

• Make one extra loan payment a year
   

• Round up your monthly payment
   

• Refinance if rates drop
   

Just be sure to check if your loan has any early payoff penalties.

Tips for Financing a Used Car in Nebraska

Used car loans work a bit differently than new ones. Here’s how to set yourself up for success:

• Know the car’s age and mileage – Some lenders won’t finance vehicles over a certain age or mileage.

• Get pre-approved before shopping – This avoids overpaying due to dealer markups.

• Consider Certified Pre-Owned (CPO) – Often lower rates apply to CPO vehicles compared to standard used cars.

• Shop local lenders – Local credit union car loans may offer lower rates for members. View LincOne’s auto loan rates for new, used and flex auto financing.

• Read the full loan terms – Check for added fees, rate increases, or warranty requirements.

Ready to Hit the Road? We’re Here to Help

At LincOne Federal Credit Union, we make auto financing in Lincoln simple. Whether you're buying new, used, or just exploring your options, our team is here to guide you every step of the way.

???? Apply today or visit one of our Lincoln branches to learn more.