Auto Finance Rates Hit Highest Level Since 2009 Featured

By Staff Writer November 03, 2018

Tightening credit conditions continued to squeeze car shopper’s wallets in October, according to Edmunds.

The annual percentage rate (APR) on new financed vehicles averaged 6.2 percent in October, a 1.3 percent increase from a year ago, a 2 percent increase from five years ago, and the highest level on record since January 2009.

Zero-percent finance loans fell to their lowest level since 2007. The percentage of sales with zero percent finance deals to dropped to 3.8 percent in October, compared to 7.5 percent in 2017 and 7.8 percent five years ago.

The average new-car buyer will pay $1,316 more in interest over the life of the financing, if the individual bought a car this past October compared to October of 2017 (taking into consideration average loan term lengths, average amount financed, and average APRs).

Shoppers with lower-than-average credit scores could pay even more.

Last modified on Saturday, 03 November 2018 22:27

Please publish modules in offcanvas position.