Auto Loan Interest Rates Stay Below 6% for Fourth Month in a Row in October, According to Edmunds

The average interest rate for a new-vehicle loan stayed under 6% for the fourth month in a row in October, according to the car shopping experts at Edmunds.

The annual percentage rate (APR) on new financed vehicles averaged 5.7% in October, compared to 5.7% in September and 6.2% in October of 2018.

Edmunds experts say car shoppers found much better financing offers this year compared to last October, when interest rates spiked above 6% and stayed there through the first six months of 2019.

“Car shoppers got to take advantage of some decent financing offers as automakers continued their model-year sell-down efforts in October,” said Jessica Caldwell, Edmunds’ executive director of industry analysis. “Auto loan interest rates still aren’t as low as they were a few years ago, but it’s good news for shoppers that rates appear to be reaching a point of relative stability.”

Edmunds experts note that the Fed rate cut at the end of the month happened too late to do much for October sales, but could help ease financing conditions for car shoppers through the rest of 2019.

“The end of the calendar year is a popular time for expensive vehicle purchases,” said Caldwell. “Shoppers in the market for a large truck or SUV, or a new luxury vehicle, can look forward to taking advantage of lower financing rates as a bit of an early holiday gift.”

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Today’s auto loan interest rates are looking good overall. But if you want the best deal on auto finance, go see your credit union. Your not-for-profit, member-owned credit union exists to give you the best rate available.

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