New-Car Finance Continues to Tighten Featured

By Staff Writer February 05, 2019 659

Tightening credit conditions and rising vehicle prices continued to squeeze consumers in January, according to Edmunds.

Due in part to an evaporation of 0-percent financing deals, the average annual percentage rate (APR) on new financed vehicles hit the second highest point in 10 years in January, averaging 6.19 percent. This compares to 4.99 percent last January and 4.22 percent five years ago.

Additionally, the average transaction price of a new vehicle is expected to hit a near-record high of $37,150 in January. Zero-percent financing offers dropped to their lowest level since 2006.

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Last modified on Tuesday, 05 February 2019 14:43