Banks Catching Up to CU Indirect Loan Rates
While many credit unions still have some of the best auto loan rates, banks are still competing in the indirect space.
According to rate tracking firm Informa Research Services, credit unions have remained consistent over the summer with lower auto loan rates. As of July 20, the average rate for a five-year, new auto loan was 3.85% compared to 5.25% at banks. The average loan rate for a two- to four-year-old used car was 3.97% at credit unions and 5.48% at banks.
In the indirect sector, banks and credit unions are going head to head with five-year loans for those with credit scores between 625 and 649, Informa’s data showed. The average rate was 8.57% at credit unions and 8.59% at banks.
For those with credit scores between 650 and 679, the average rate for a five-year loan was 6.59% at credit unions and 6.77% at banks. Borrowers with credit scores between 680 and 719 saw average rates at credit unions at 4.70% and 5.04% at banks.