Edmunds Analysis Reveals Car Shoppers Get Slight Reprieve from Soaring Interest Rates in November
Zero percent deals make a limited return for the holidays, but Edmunds analysts caution these deals won't last and APRs over 6 percent are likely the new normal
SANTA MONICA, Calif., Dec. 3, 2018 /PRNewswire/ -- Interest rates for new vehicles dipped slightly in November, according to the car shopping experts at Edmunds. The annual percentage rate (APR) on new financed vehicles averaged 6.0 percent in November, compared to 6.2 percent in October. Edmunds experts say that this month-over-month dip can be attributed to a bump in zero percent finance deals from automakers in November.
"Car buyers got a bit of relief this month thanks to Black Friday deals, but an average interest rate above 6 percent is still a tough pill to swallow, especially for shoppers who might be coming back to the market after a number of years," said Jeremy Acevedo, Edmunds' manager of industry analysis. "Shoppers who purchased a car in November five years ago could feasibly be facing a 47 percent increase in their interest rate this November."
Despite this month-over-month uptick in zero percent finance loans, Edmunds data reveals that zero percent finance deals dropped to 5.5 percent, their lowest November level since 2005.
"Automakers are certainly offering more zero percent finance deals this holiday season than they have in previous months, but they're still few and far between," said Acevedo. "Consumers who are thinking of buying and are planning on financing their next purchase might want to strike while the iron is hot because these deals are not likely going to last beyond the New Year."
More insight into recent auto industry trends can be found in the Edmunds Industry Center at http://www.edmunds.com/industry-center/.
New-Car Finance Data |
|||
October 2018 |
October 2017 |
October 2013 |
|
Term |
69.14 |
69.26 |
65.65 |
Monthly Payment |
$551 |
$524 |
$483 |
Amount Financed |
$31,877 |
$31,433 |
$22,967 |
APR |
6.03 |
4.81 |
4.11 |
Down Payment |
$4,164 |
$3,906 |
$3,785 |
Used-Car Finance Data |
|||
October 2018 |
October 2017 |
October 2013 |
|
Term |
67.27 |
67.06 |
64.57 |
Monthly Payment |
$409 |
$389 |
$369 |
Amount Financed |
$22,004 |
$21,494 |
$19,795 |
APR |
8.69 |
7.66 |
7.68 |
Down Payment |
$2,643 |
$2,475 |
$2,188 |
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
Senior Manager, Public Relations
[email protected]
310-309-4900
http://edmunds.com/about/press
SOURCE Edmunds
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