Is 5.69 a good auto loan rate?

[Shane]

A 5.69% auto loan rate is a competitive offer in today's market, especially for a used car or for borrowers with good but not excellent credit. To judge it properly, you must compare it to current national averages and your specific credit tier. As of early 2024, the average APR for a new car loan is approximately 7.01%, while the average for a used car loan is around 11.35% for all credit scores combined, according to Experian's State of the Automotive Finance Market report.

Your credit score is the most significant factor. The original data provided offers a useful benchmark, though rates have risen. For context, here is how a 5.69% offer compares to typical credit-tier ranges in the current elevated rate environment:

Credit Score Tier	Typical New Car APR Range (2024)	Typical Used Car APR Range (2024)
Super Prime (781-850)	~5.07% - 6.50%	~6.44% - 8.50%
Prime (661-780)	~6.80% - 9.00%	~9.00% - 13.00%
Non-Prime (601-660)	~10.0% - 14.0%	~14.0% - 19.0%

If you have a Prime credit score (661-780), a 5.69% rate is exceptional for a used vehicle and very strong for a new one, likely beating the average. It suggests you may have secured a manufacturer-subsidized promotional rate or an excellent deal from a credit union. For a borrower in the Super Prime tier, 5.69% is a standard market rate for a new car today but remains a good deal overall given the high-rate climate.

The loan term also matters. A 5.69% rate on a 36-month loan is costlier than the same rate on a 72-month loan, as interest costs are front-loaded. Always calculate the total interest paid over the life of the loan. A shorter term with a slightly higher rate can sometimes cost less in total interest than a longer term with a marginally lower rate.

To secure this rate or a better one, get pre-approved from a local credit union, which often offers rates 0.5 to 1.5 percentage points lower than national banks or captive finance companies. Also, a larger down payment (20% or more) can improve your loan terms. A 5.69% APR is a solid starting point for negotiation; use it as leverage to see if other lenders can match or improve upon it.

[IsabelLynn]

I just bought a used SUV last month, and my credit score is around 720. I spent weeks checking rates online and with my bank. The best I was offered before finding a credit union was 6.8%. When the dealer came back with 5.69%, I was honestly surprised—it was the lowest by over a full percent. I took it immediately. In this market, with used car prices still high, getting a rate under 6% felt like a win. It made the monthly payment manageable. My advice? If your credit is similar to mine and you’re looking at a used car, that 5.69% is a signal to move forward.

[DelClara]

As a financial planner, I tell clients to evaluate auto loans based on their total cost of ownership, not just the monthly payment. A 5.69% APR is a key input in that calculation. Currently, it sits below the national average, which is positive. However, "good" is personal. For someone with an 800 credit score, better rates may exist at credit unions. For another client rebuilding credit, it's an excellent opportunity. The decision hinges on three questions: First, does this rate align with your credit profile based on the tiered data? Second, what is the total interest you will pay over your chosen term? Third, could the money for a larger down payment yield a higher return elsewhere? If this rate is at or below the average for your credit bucket, it’s financially sound.

[IkerRose]

My brother works at a dealership, and he says people get too hung up on the rate without looking at the big picture. Yes, 5.69% is a good rate right now—especially from a dealer. But did they extend the loan to 84 months to make the payment look good? Did they adjust the selling price to compensate for the low rate? Always read the full contract. A low APR on an overpriced car is a bad deal. Get your own financing quote from a bank or credit union first to use as a baseline. If the dealer can beat it with 5.69% on the same car price and term, then you’re truly getting a good deal.

[StEsther]

Coming out of a lease, I had to finance my buyout. My credit is decent, right in that 700-740 zone. The leasing company’s buyout rate quote was over 7%. I started calling around. My local credit union pre-approved me for 5.9% on a used car loan, which I thought was solid. When I mentioned this to the dealer handling the lease return, they matched it at 5.69%. This experience taught me two things. First, having a competing offer in hand is powerful. Second, the definition of a "good" rate is what you can secure based on active shopping. For a used car—which my lease buyout technically was—a rate in the 5% range feels like the new "low" in a market where 0% deals are gone. It saved me thousands compared to the initial offer.