What is the best auto loan rate for first time buyers?

Visit your local credit unions, as they often have friendlier loan rates, particularly for borrowers with little or no credit history. Check with other car dealers, as well. Some are friendlier to first time borrowers than others.  The alternative, of course, would be to save up the necessary cash and use it to buy a cheaper used car for now, while you continue to build your positive credit history.  

A high interest rate on a loan offer is often due to either a lack of sufficient credit history (new borrower) or a low credit score due to previous late payments or other negative credit history. In any case, the number one best way to increase one's credit score is by making payments on time.  Your local credit union may also have programs designed to help borrowers establish a positive credit history and/or improve credit scores over time, such as opening a low limit credit card secured by a cash deposit or offering short-term loans.