Five-Year Indirect Auto Loan Rates Show Few Gaps
The average rates for five-year indirect, new auto loans are nearly identical at credit unions and banks, according to one rate tracking firm.
As of May 22, Informa Research Services found that the average rate for indirect, five-year, new auto loans for those with credit scores between 680 and 719 was 4.93% at credit unions and 4.95% at banks.
Credit unions had a slightly better edge for borrowers with credit scores between 650 and 679 on the same type of loans at 6.76%. At banks, the average rate was 6.64%.
According to Informa Research, the average rate for borrowers with credit scores between 625 and 649 was 8.68% at credit unions and 8.62% at banks.
Still, credit unions continue to have command over banks with five-year, new auto loan rates. As of May 22, the average rate was 3.98% compared to 5.44% at banks. The same is true with used auto loans with terms between two and four years. The average rate at credit unions was 4.12% and 5.68% at banks.