New Car Financing Grows More Costly

By Staff Writer October 03, 2018

High interest rates continued to put pressure on new vehicle sales in September, according to Edmunds.

The annual percentage rate on new financed vehicles averaged 5.8 percent in September, compared to an average APR of 4.8 percent in September 2017 and 4.1 percent five years ago. Interest rates have stayed above 5 percent for eight months in a row.

The average down payment for a new vehicle rose to $4,198, compared to $3,817 in September 2017 and $3,555 five years ago.

The availability of zero percent finance loans dropped to 5.6 percent compared to 10.1 percent in September 2017, hitting the lowest September level since 2005.

Average loan terms contracted to their lowest levels all year, dropping to 68.7 months in September, compared to 69.4 months in September 2017 and 65.5 months five years ago.

Last modified on Wednesday, 03 October 2018 18:50

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