WASHINGTON (2/13/15)--After car manufacturers, credit unions offer the best interest rates on auto loans, according to the findings of a recent report by Washington, D.C.-based WalletHub.
Credit unions offered interest rates 25% below the national average, the report found, while national banks were roughly average and regional banks offered interest rates 40% above average. Manufacturers offered rates 35% below average.
Nearly 160 lenders were polled, including 27 small banks, 47 regional banks, 10 national banks, 52 credit unions and 21 manufacturers.
In 2014, interest rates at credit unions dropped 2.87% to 2.44% for new cars, while banks ended the year with an average of 4.31%. Manufacturers posted the lowest interest rate for new cars at 1.92%.
For used cars, credit union interest rates dropped 1.65% to 2.93%, while banks ended 2014 with an average interest rate of 5.12%.
Additional findings from the report: