Auto loan rates managed to move lower across the board over the past week according to the weekly survey of the top auto lenders performed by selectautorates.com. Both new and used car loan rates were down modestly for the week across all loan terms or maturities. Car loan refinance rates were lower as well according to the survey.
The average car loan rate from the top ten auto lenders on a 60 month term car loan ended the week lower by two basis points or 2/100 of a percent. The average rate on a new car loan with a 60 month term closed the week at 4.45%.
The average rate for the 48 month auto loan was down by two basis points as well, which pushed the average rate down to 4.33% from 4.35% in the previous week.
The average rate from the top ten auto lenders for a 36 month car loan fell by just one basis point or 1/100 of a percent for the week. The average rate on a new car loan with a 36 month term ended the week at 4.18%.
For used car loans, the 60 month term used car loan rate from 4.78% to 4.76% from the previous week. The 48 month used car loan rate was down by equal amount, dropping to 4.68% from the prior week’s average rate of 4.70%. The short term 36 month used car loan rate came down to 4.54% from the previous week’s rate of 4.55%.
Car loan refinance rates were down for both of the loans terms surveyed by selectautorates.com, the 48 month term loan and the 36 month term loans. The rate for an auto loan refinance on a 48 month terms closed the week with an average rate of 4.63% while the auto refinance rate for a 36 month loan stood at 4.53%. Both rates were lower by two basis points for the week.
Selectautorates.com’s weekly national survey of large banks and auto lenders indicated that auto loan rates remained stuck in neutral again for the week ending February 12, 2010. Auto loan rates across all terms were mostly flat in this week’s rate survey of the nations top auto lenders.
In this week’s roundup of interest rates, the average rate on new car loan for a 60 month term stood at 4.57 percent at the close of the week. The rate on new car loans with a 48 month term had an interest rate of 4.45% at week’s end. In this low rate environment, the spread between the three year term loans and the 5 year term loans is quite narrow. The 36 month term car loan is at 4.30%, only 27 basis points or 27/100 of a percent below the 60 month term loan.
Used car loan rates held their ground this past week as well. The rate on a used car loan with a 60 month term is at 4.89 percent. The 48 month term used car loan is 4.81%. The short term, 36 month used car loan rate held at 4.67%.
Refinance rates for auto loans displayed limited movement along with the new and used car loan rates. The rate on a 48 month car loan refinance is 4.76 percent. The rate on a car loan refinance with a 36 month term is ten basis points lower at 4.66%.
To find the top ten best auto loan rates for both new and used car purchases or for a refinance of an existing auto loan, view the enclosed auto loan rate tables. The enclosed rate tables list the car loan lenders by loan type and term.
Auto loan rates remained unchanged for the week ending January 15, 2010. The average rate for all terms on both used and new car loans were unmoved from the first week in January based on our survey of the top banks and auto lenders.
Each week selectautorates.com surveys some of the nation’s largest banks and auto lenders to compile average rates for a variety of loan types and terms and the rates of the top ten auto finance lenders are then published in the enclosed tables.
Rates on new car loans didn’t budge by even one basis point or 1/100 of a percent for this week. The average rate for a 60 month new car loan stood at 6.10%. The average 48 month new auto loan rate is 6.01% and the average rate for the 36 month new car auto loan held at 5.82%.
Used auto loan rates remained stuck in neutral as well. For used auto loans, the used auto loan rate for a 60 month term remained at 6.44%, the 48 month used auto loan rate was 6.40% and the 36 month used car loan rate held at 6.26%.
Refinancing rates followed the other categories and stayed firm week over week. The 36 month refinance rate for the week is 5.94% while the 48 month term auto loan refinance rate is 6.06%.
Continued weakness in the economy is keeping pressure on lending rates. Banks remain more selective on loan approvals and thus are keeping rates low by producing fewer loans while their reserves and bank fund availability remain high. Low levels of economic activity, Federal Reserve continued stimulus and low inflation rates should keep most all bank loan rates low including car loan rates for sometime.
Search the tables enclosed to find updated auto rates for all of the top ten auto lenders for each category and each term. Listed with the financial institution is the term, the car loan APR, the name of the financial institution, web address and phone number.
Car loan rates held remarkably steady this week. After tumbling significantly during the prior week, auto loan rates remained steadfast for the week ending August 7, 2009. New car loans with a five year term remained stable at 5.49%. Four year term car loans continued to be promoted with an average rate of 5.35%. In the short term maturity, three year term, the new car loan rate lingered at a low 5.15%.
Used car loan rates had fallen in the prior weeks along with new car loans and their rates remained stagnant for the week as well. The average rate for five year car loans for a used car held at 5.92%. The four year term used car loan rate was unaltered at 5.82%. The short term used car loan rate, the rate on a 36 month loan, was also unmoved at 5.64%.
Auto refinance rate continued this trend of stability. The 48 month auto refinance rate held at 5.63%. The refinance rate for a 36 month car loan was unresponsive to market movements as well, holding at 5.48%.
Bank funding rates, CD rates, savings rates and fed fund rates had been on a rather deep slide all year reducing the cost of funds for bank loans. Credit card rates have risen with the changing regulation recently passed by congress as well as because of continued deterioration in bank credit card portfolios. This leaves auto loans as an opportunity for banks to deploy their capital at lucrative rates without the elevated delinquency rates found in credit cards and other consumer loans such as second mortgages. Bank rates and CD rate information can be found at www.selectcdrates.com.
Car loan rates had been slow to the game in rate reductions but with a pick up lending activity due to the cash for clunkers deal, hopefully this segment of consumer lending will enjoy a rebirth. With the lack of activity in auto finance rates this week, new car loan rates as well as used auto loan rates are holding at their low point for year with increased demand. Green shoots have sprouted in banking and credit perhaps.
Car loan rates dropped modestly for the week ending July 31, 2009. The reduction in bank borrowing cost over the past few months has finally brought about a reduction to the current level of car loan rates. Bank borrowing costs have dropped measurably as seen with the reduction in fed funds rates, savings rates and CD rates. Bank car loan rates are now starting to move down along with the corresponding cost of bank funds.
All car loan rate terms, from 36 month term loans to 60 month term loans, displayed a reduction in interest rates for the week. New car loan rates, used car loan rates as well as auto refinance rates all exhibited a decrease in interest rates offered.
The average of the top ten car lenders for new car loans with a 36 month term average moved down to 5.15% for the week. The average for the 48 month term car loan pushed lower with an interest rate of 5.35%. The 60 month term car loan rate now averages 5.49% to close the week.
The average of the top car lenders for a used car loan with a 36 month term averaged 5.64%. The average for a used car loan with a 48 month term dropped down to 5.82%. The 60 month term used car loan fell to 5.92% to end the week.
For car loan refinances the loan rates were lower as well with the 36 month auto loan refinance rate falling to 5.48% and the average for the 48 month term refinance car loan rate ending the week at 5.63%.
Auto loan rates should continue to hold these lower rates since the cost of funds to engage in auto finance is not expected to rise in the coming quarter. In addition, while consumer loan delinquencies have risen substantially during the current recession, auto loan delinquencies have not kept the same worried pace.
Car loan delinquencies have certainly risen but to the magnitude seen in credit cards and home mortgages. Banks had increased consumer loan interest rates in 2008 while tightening up on lending standards in order to insure that their auto finance operations remain profitable. This has helped to restrict any significant increases in loan delinquencies and allowed the banks to now offer lower car loan rates without measurable loan losses.
The bleak economic data produced during the week was the foundation for enough movement in the bond market to affect mortgage rates and bank rates but car loan rates held stubbornly steady. This week bond rates dropped noticeably as did the rates paid on bank certificates of deposits and savings rates. Unfortunately, that activity had little impact on car loan rates.
Auto loan rates were little changed for the week ending July 10, 2009. Long term auto rates for new cars rose modestly while the shorter term auto loan rates remained constant. Used car loan rates displayed a similar pattern. Long term used car loan rates rose modestly while the shorter term rates were mostly unchanged.
The average of the top ten car loan rates with a 60 month term moved up by one basis point or 1/100 of a percent to end the week at 5.74%. The average for the 48 month term car loan rate was up by one basis point as well, closing out the week with an interest rate of 5.63%. 36 month car loan rates remained stationary ending the week at 5.49%.
In the used car loan rate category, the 60 month term used car loan rate increased by two basis points to 6.14% for the week. The 48 month used car loan rate was unchanged at 5.84%. The short term, 36 month term used car loan rate moved in the opposite direction and fell one basis point to end at 5.73%.
With car loan volume off significantly this year, the big lenders are busy working mortgage origination’s and dedicating limited resources to auto financing. Fortunately for the big banks, the cost of funds for lending is dropping the year and with almost no comparable reductions in car loan rates, the big boys should enjoying a large spread on car loan interest margins. Auto loan rates should move lower in this environment but with the loan losses the large lenders are experiencing in credit cards and mortgages, the odds of seeing any banking generosity in 2009 with lower car loan rates appears remote.
Understanding how the automobile finance process works should be the first step for anyone thinking about buying a new or used car or truck. In order to make a well informed car purchase it is essential that a prospective buyer learn about the car models, options, prices, and ratings. But far too many people go to the dealership equipped with that knowledge and remain ill informed about the car financing and car loan options. Grasping the ins and outs of vehicle financing will give an individual the knowledge to ensure that the purchasing decision does not negatively impact an individual’s budget, credit and financial goals.
Key items to consider before choosing a vehicle to buy should include:
How much can you afford for the car purchase. Understandably, the first task is to evaluate your financial situation and determine how much you can afford to pay for a new car. This requires evaluating your own budget and the costs of the car that match your needs. Car costs should not only factor in the purchase price and the car loan payment but the costs of insurance, gas as well as maintenance costs.
Become familiar with what car financing and car loan options are available to you. This requires comparing car loan rates, annual percentage rates and financing terms from more than one source such as banks, finance companies, and credit unions. The initial car loan rate you are offered may be negotiable and may be changed based on different factors.
While investigating the car loan options it is helpful to become knowledgeable about what factors affects the car loan rate and finance charge. Banks and car loan companies use a number of factors to settle on the auto loan rate that they offer. The most important component is the car loan applicants credit history and credit score. Other factors that may also affect the financing decision and the car loan rate include: the applicant’s income, the total purchase price of the car, the amount of the down payment, the term of the car loan and the availability of manufacturer incentives.
Be aware of the cost of optional products such as extended service contracts, credit insurance and physical car options. If you don’t want the extra products, look at a different vehicle and don’t sign for the options you don’t need or want. Read the contract carefully before you sign it and ask questions about anything you don’t understand before committing to a contract.
Understand the overall car cost including the purchase price, monthly car loan payment and total costs over the life of the loan. Review the car loan APR and any manufacturer rebates given or available. Know how much the down payment affected the cost whether it is cash or trade in value. Be sure to review the whole car purchase package that is offered, and not just the monthly car payment.
The auto loan and car finance industry is very competitive, use the resources available and the different lenders in the car loan market for your advantage by comparing the loan terms, annual percentage rates and other important financing factors and not just which car to choose.
Remember that once you have completed the purchase and executed the car loan contract that the lender or bank that provided that loan to purchase the car holds a lien on the car’s title until you have paid the loan off in full. Be sure to make your car loan payments on time. Late or missed car loan payments will result in potentially, costly late payment fees and may negatively impact your credit report which will have an effect on your ability to get credit in the future.