Auto Loan Interest Rates to Dip to Lowest Level of 2019 in September, According to Edmunds
Average interest rate on a new-vehicle loan stays below 6% for the third month in a row as automakers and dealers extend model-year sell-down offers
SANTA MONICA, Calif., Oct. 1, 2019 /PRNewswire/ -- The average interest rate for a new-vehicle loan fell for the sixth month in a row and stayed under 6% for the third month in a row in September, according to the car shopping experts at Edmunds. The annual percentage rate (APR) on new financed vehicles averaged 5.7% in September, compared to 5.8% in September of 2018.
"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.
"Shoppers who are thinking about buying a new car may want to take advantage of the model-year sell-down over the next couple of months before the majority of these incentives dry up," 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 |
||||
September 2019 |
September 2018 |
September 2014 |
||
Term |
69.7 |
68.7 |
67.0 |
|
Monthly Payment |
$559 |
$537 |
$478 |
|
Amount Financed |
$32,928 |
$31,062 |
$28,120 |
|
APR |
5.7 |
5.8 |
4.2 |
|
Down Payment |
$4,050 |
$4,198 |
$3,367 |
|
Average Transaction Price |
$37,051 |
$36,369 |
$32,606 |
|
Used-Car Finance Data |
||||
September 2019 |
September 2018 |
September 2014 |
||
Term |
67.5 |
66.9 |
65.5 |
|
Monthly Payment |
$416 |
$401 |
$371 |
|
Amount Financed |
$22,623 |
$21,697 |
$20,090 |
|
APR |
8.4 |
8.4 |
7.7 |
|
Down Payment |
$2,660 |
$2,657 |
$2,164 |
|
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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