Car Loan Rates for the Week of August 7, 2009

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.

Tags: auto finance, auto loan rate, auto loans, auto refinance, bank loans, car loan rate, car loans, credit, loans

This entry was posted on Monday, August 10th, 2009 at 1:03 pm and is filed under Auto Industry Update. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.