Auto Loan Interest Rates Stay Below 6% in February for Eight-Month Streak, According to Edmunds
The average interest rate on a new car loan is expected to see a notable year-over-year drop, but analysts say zero percent finance offers remain scarce
SANTA MONICA, Calif., March 3, 2020 /PRNewswire/ -- The average interest rate for a new vehicle loan stayed under 6% for the eighth month in a row, according to the car shopping experts at Edmunds. The annual percentage rate (APR) on new financed vehicles averaged 5.6% in February, compared to 6.3% in 2019 and 5% five years ago. Edmunds data reveals that the share of sales with 0% finance deals stayed flat at 3.6% in February, unchanged from January.
"Interest rates on new cars are in a really stable place right now," said Jessica Caldwell, executive director of insights at Edmunds. "February is a slower month for auto sales, so shoppers heading to the dealership at this time of year are probably not going to find much in the way of big promotional offers, but they're definitely getting better interest rates than if they tried shopping at this time just a year ago."
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
February 2020 |
February 2019 |
February 2015 |
|
Term |
69.8 |
69.4 |
67.6 |
Monthly Payment |
$569 |
$556 |
$492 |
Amount Financed |
$33,583 |
$32,071 |
$28,686 |
APR |
5.6 |
6.3 |
5.0 |
Down Payment |
$4,301 |
$4,187 |
$3,493 |
Used-Car Finance Data
February 2020 |
February 2019 |
February 2015 |
|
Term |
67.4 |
67.4 |
65.6 |
Monthly Payment |
$411 |
$409 |
$373 |
Amount Financed |
$22,364 |
$21,861 |
$19,702 |
APR |
8.3 |
9.0 |
9.0 |
Down Payment |
$2,707 |
$2,638 |
$2,369 |
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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