State Usury Laws, Borrower Credit Risk Steer Auto Loan Rates
Members in Alaska, Michigan and Oregon may have an edge over others when it comes to shopping for a vehicle.
According to rate tracking firm GoBankingRates.com, the three states had the lowest auto loan rates in the country as of July 24, the latest period tracked. Michigan led the pack at 3.03% followed by a tie between Alaska and Oregon at 3.04%.
As of June, credit union auto loan portfolios equaled 30% of all loans, according to CUNA Mutual Group’s August Credit Union Trends Report. The $16.6 billion annual increase accounted for 55% of all credit union loan growth.
Bond said when GoBankingRates looked at auto loan rates in the top 10 and bottom 10 rankings, credit unions consistently offered the lowers rates in every single state.