Consumers Credit Union is another great option for low rates on auto loans. Based out of Illinois, the credit union offers membership for anyone in the country who can pay a $5 fee and keep at least $5 in a savings account. The credit union has an A+ with accreditation from the BBB. Consumers Credit Union’s auto loan products are available for people with good to excellent credit, meaning from the mid-600’s and above.
Like PenFed Credit Union, Consumers Credit Union partners with TrueCar to help shoppers find vehicles from across the country. One difference is that buyers can still get the same interest rates whether they shop with TrueCar or not. At this time, rates start at 2.49% for new vehicle financing and 2.74% for used vehicle financing. Consumers Credit Union offers a 0.25% discount on the rate for using autopay and an extra 0.25% discount when that autopay is linked to a Consumers Credit Union account.
Founded in 2004, LightStream is the online lending division of Truist Bank (which formed when SunTrust Bank and Branch Banking and Trust Company merged). According to the company’s website, it has a 4.9 out of 5.0-star rating based on 18,000 customer reviews. It also has a rating of A+ with accreditation from the BBB. LightStream provides loans of all kinds to people with good credit or better. With auto loans, there are no restrictions on the age or mileage of the financed vehicle, which means borrowers have plenty of options. However, the starting loan amount is $5,000.
LightStream auto loans start at 2.49% for both new and used vehicle loans, and these rates include an autopay discount. Without autopay, the rate will be 0.5% higher. One nice feature is LightStream’s Rate Beat Program, where LightStream will beat the interest rate of its competitors under certain conditions. If you were approved for a lower rate with a competing lender for the same terms and can show proof of this, LightStream will offer you a rate of 0.1% below the competitor’s rate.
So, what is a good car loan https://maxloan.org/installment-loans-ms/ rate today? According to the National Credit Union Administration (NCUA), the average 60-month new car loan from a credit union has an interest rate of 3.09%. From a bank, the average rate is 4.81%. So, if you find these rates or better, you know you’re getting a fair rate on your car loan.
What is a Good Used Car Loan Rate?
Loan rates for used cars are higher than rates for new cars. For a 48-month term, a good used auto loan rate from a bank is 5.16% or lower. A good used car rate from a credit union is 3.16% or lower.
Below is a chart with NCUA data for average credit union and bank rates for both new and used vehicles.
What Affects Loan Interest Rates
The rates above are average APRs based on information reported to the NCUA. You may find different rates based on a number of factors, including:
- Credit score: A low score will require a higher interest rate, and vice versa. Credit score is perhaps the single most important factor lenders use to determine rates.
- Loan term: Shorter terms have lower interest rates. Consider making higher monthly payments to get a shorter-term loan with a lower overall cost.
- Credit report: Lenders look at your entire credit report, so two people with the exact same score can find different rates based on how their score is calculated.
- Income: Lenders can have minimum income requirements for borrowers to qualify and also to secure the best auto loan rates.