Car loan borrowing costs continued the trend of the second quarter and moved lower for the week ending August 19, 2011. Consumer borrowing costs for new car loans are new record lows following this week’s interest rate reduction.
A number of auto lenders have greatly improved their consumer rate quotes over the past six weeks. Even with the steady trend of lower interest rates, there is an increased amount of variety in what individual auto lenders are now quoting as the lowest car loan rates.
The wider spread among bank auto rates is due to the flattening yield curve and the instability or volatility in bank rates which can increase the cost of doing business for auto lenders and some lenders will hold rates slightly higher as secondary market rates move lower.
The Selectautorates.com weekly car loan rate survey showed that the average national car loan rate slipped by just under one basis point, dropping to 3.649 percent from 3.658 percent in the previous week. The national car loan rate measures the rate on rates on new car loans, used car loans and refinance auto loans across multiple loan terms. One basis point is equal to 1/100th of a percent.
For the week ending Augusts 19, 2011 the rate on new car loans was lower by one basis point. The average rate on the 60 month term car loan came in at 3.49 percent. The 48 month new car loan rates closed the week with rate of 3.41 percent. The shortest term new car loan in the survey, the 3 year term loan, ended the week unchanged at 3.28 percent.
Used car loan rates were lower by amount similar to that found in the average rate for new car purchases. The rate for 60 month term used car loan dipped down by one basis point to 3.86 percent. The 48 month used car loan was also declined by one basis point, dropping down to 3.79 percent. Used car loans with a 36 month term displayed no change in rate and remained at 3.74 percent.
Interest rates for car loan refinances were unchanged across all terms. The 48 month refinance rate stayed put at 3.96 percent. The short term, 36 month, refinance rate stayed at 3.83 percent.
The car loan rates listed in the Selectautorates.com survey are current as of August 19, 2011. All car loan rates in the weekly rate survey are obtained directly from the bank auto lenders in the survey.
The car loan rates listed in the survey are subject to change without notice by the auto lenders and may vary from region to region. The rates obtained are generally those rates available for the most creditworthy borrowers. The auto interest rates and loan terms may vary based on the creditworthiness of the individual and other factors such as the down payment and income of the borrower.
To review the complete list of car loan rates from the most current auto loan rate survey posted by term please see the following rate tables: 36 month new auto loan rates, 48 month new auto loan rates, 60 month new auto loan rates, 36 month used auto rates, 48 month used auto loan rates, 60 month used auto loan rates, 36 month car loan refinance rates and 48 month car loan refinance rates.