Auto Loan Interest Rates Drop to Lowest Level of 2019 in November, According to Edmunds
Average interest rate on a new vehicle loan expected to stay under 6% for the fifth month in a row as dealers, automakers extend Black Friday promotional offers
SANTA MONICA, Calif., Dec. 3, 2019 /PRNewswire/ -- The average interest rate for a new vehicle loan dropped to its lowest level of 2019 — and lowest level seen since February 2018 — in November, according to the car shopping experts at Edmunds. The annual percentage rate (APR) on new financed vehicles averaged 5.5% in November, compared to 5.7% in October and 6% in November of 2018. Edmunds data reveals that 21.8% of shoppers who financed their vehicle purchases in November 2019 got an interest rate below 3%, compared to 18.6% of those who financed purchases in November 2018.
"Shoppers who made it out to the dealership this November got to take advantage of some of the biggest bargains all year thanks to a combination of Black Friday and model-year selldown promotions," said Jessica Caldwell, executive director of insights at Edmunds. "Auto loan interest rates still aren't as low as they were a few years ago, but it's encouraging to see that shoppers are landing more attractive financing offers as rates continue to trend downward."
While interest rates declined, Edmunds experts note that new vehicle prices continued to rise in November. Edmunds data reveals that the average transaction price for a new vehicle climbed to an all-time high of $37,981 in November 2019, compared to $37,188 last year and $33,282 five years ago.
"We typically see a lift in large truck and luxury vehicle purchases at this time of year, but these rising vehicle prices are also a reflection of car shoppers opting for bigger vehicles with more options across the board," said Caldwell.
More insight into recent auto industry trends can be found in the Edmunds Industry Center at https://www.edmunds.com/industry/insights.html.
New-Car Finance Data |
|||
November 2019 |
November 2018 |
November 2014 |
|
Term |
69.3 |
69.1 |
67.0 |
Monthly Payment |
$568 |
$551 |
$492 |
Amount Financed |
$33,472 |
$31,877 |
$28,769 |
APR |
5.5 |
6.0 |
4.5 |
Down Payment |
$4,365 |
$4,164 |
$3,560 |
Average |
$37,981 |
$37,188 |
$33,282 |
Used-Car Finance Data |
|||
November 2019 |
November 2018 |
November 2014 |
|
Term |
67.5 |
67.3 |
65.5 |
Monthly Payment |
$413 |
$409 |
$369 |
Amount Financed |
$22,512 |
$22,004 |
$20,041 |
APR |
8.3 |
8.7 |
7.6 |
Down Payment |
$2,710 |
$2,643 |
$2,220 |
About Edmunds
Edmunds guides car shoppers online from research to purchase. With in-depth reviews of every new vehicle, shopping tips from an in-house team of experts, plus a wealth of consumer and automotive market insights, Edmunds helps millions of shoppers each month select, price and buy a car with confidence. Regarded as one of America's best workplaces by Fortune and Great Place to Work, Edmunds is based in Santa Monica, California, and has a satellite office in Detroit, Michigan. Follow us on Twitter, Facebook and Instagram.
CONTACT:
Talia James-Armand
Senior Manager, Public Relations
[email protected]
310-309-4900
http://edmunds.com/about/press
SOURCE Edmunds
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