The following bank auto loan rates are updated weekly and I try to be as accurate as possible, but I'd recommend using this only as a guide. Click on the name of any bank below to access their websites auto loans page for the most accurate rates.
To compare these auto lenders loan programs, who they loan to, loan to value, their general guidelines, etc. visit my auto lender review.
This could save you unnecessary credit inquiries if they don't offer what you are looking for...
Most of the lenders websites are very vague!
Dealerships will typically be able to get better bank auto loan rates (roughly 0.5% - 1.5% better) than you could get on your own, but it never hurts to get pre-approved to keep the dealers honest:)
Skip down below the
rate chart to learn more on:
These sections will help you to better understand the "as low as" aspect of the bank auto loan rates below and how you can possibly get even better rates than posted...
View the: [ rate review definitions and disclaimer ]
|New Bank Auto Loan Rates
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Used Bank Auto Loan Rates
Loan structure is certainly not the most exciting topic, but it plays a very important role in determining bank auto loan rates. The more you plan to borrow in relation to the value of the vehicle the higher the rate.
On the other hand, the less you borrow in relation to the value the lower your rate.
Some lenders will use the wholesale value while others use the retail value of a vehicle.
use retail values. The banks using retail value to determine loan structure will be banks that cater to stronger credit customers. No subprime auto lenders use the retail value, only wholesale values.
Equals Bigger Discounts
In order to get the best bank auto loan rates you'll want to be sure you are not borrowing an excessive amount of money in relation to the value of the vehicle.
An example, if you were trying to borrow $17,000 on a car that had a wholesale value of $10,000. You would be trying to borrow 170% of the value of the vehicle and that, for most auto lenders, is considered way out of line.
If you were to be approved for a loan like this, you could expect your finance rate to be much higher.
Lenders have tightened up quite a bit lately and like to see loans in the 110% to 115% range. If that is doable, then you will qualify for the better rates.
If you can put a nice chunk of money down, then you could qualify for additional discounts, like the ones below.
Shorter Loan Terms
Equal Smaller Finance Rates
Loan term plays a very important role in loan structure as well. As you may have seen from the chart above, not many auto lenders are offering 84 month auto loans.
The longer the loan the higher the risk and therefore, auto lenders will loan a smaller percentage at higher rates.
The most common additional discounts that auto lenders offer to customers to get the best bank auto loan rates are:
This discount is usually .25% to .50%.
Equity Discount (EQ)
This discount comes into play if you have a sizable down payment (from trade equity or cash) and your amount financed is a certain percentage below (usually 90% or less) invoice, wholesale blue book, NADA wholesale, or even MSRP/retail book value for some lenders.
An example would be a used vehicle with a wholesale book value of $10,000 and your total amount financed is $9,000 or less.
This discount can knock another .25% to .50% off of your auto loan rate.
This discount may already be reflected in the rates above and if so, then the rates will have an * next to them.
Luxury Discount (LX)
Most banks offer a luxury discount when you finance over a certain dollar amount. This amount varies from bank to bank, but is usually an amount financed greater than $29,000 to $35,000.
This discount is usually not quite as big as the others and is typically in the .10% to .25% range.
No Flat Fee (NF)
This is applies when the dealership waives their flat fee that is paid to them from the lender when a loan is sold to the customer at the base buy rate.
This is usually an additional discount of .10% to .25%. FYI: It is very rare that a dealership will give this discount up easily and you will have to work for it.
Checking and Automatic Payments (CK)
This is most common with credit unions, but some banks, such as Chase, will offer this discount and it's typically in the .25% range.
All you have to do is arrange to have your monthly payments automatically deducted from your checking or savings account each month.
Credit Score Discount (CS)
Lenders are slowly beginning to shift their lending strategies and are beginning to give additional discounts to their auto loan rates for customer they deem to have excellent credit based on credit score.
This discount is separate from just falling into a higher tier and is an actual discount from their top tier auto loan rates.
For some lenders this will mean an additional discount for credit scores 730+ and for other top tier auto lenders this will mean 800+.
This discount will typically range between a .25% and .50% discount.
Dealer Mark Ups
If you are looking to receive the best bank auto loan rates from a dealership, then it's important to note that dealers can and do mark up bank auto loan rates.
Credit unions typically do not allow dealers to mark up rates, but in the case of Mountain America Credit Union (above), they will allow a mark up on new members, but not on existing members.
As for traditional banks,
their mark ups are as follows:
These allowable mark ups to a dealers bank auto loan rates are general and not every auto lender follows this exact formula, but what they will allow is typically pretty close.