New Car Loan Rates Dip Featured

By Staff Writer October 01, 2019

The average interest rate for a new-vehicle loan fell for the sixth month in a row and stayed under 6 percent for the third consecutive month, according to the car shopping experts at Edmunds. The annual percentage rate (APR) on new financed vehicles averaged 5.7 percent in September, compared to 5.8 percent a year ago.

“Automakers are in full sell-down mode, which means that car shoppers got to take advantage of some decent promotional offers in September,” said Jessica Caldwell, Edmunds’ executive director of industry analysis. “The cost of purchasing a new vehicle is still a lot higher than it was a few years ago, so it’s a positive sign that automakers and dealers are making the right moves to keep buyers coming back into the fold.”

Although average interest rates on new-vehicle loans have seen a decline in recent months, Edmunds experts say this drop is driven by incentives and is not indicative of a return to post-recession market conditions.

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Last modified on Tuesday, 08 October 2019 19:24

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