Average New Auto Loan Interest Rate Hit 22-Month Low in December, According to Edmunds
The car shopping experts at Edmunds say the average interest rate for a new vehicle loan fell for the third month in a row in December 2019, dropping to its lowest point since February 2018.
The annual percentage rate (APR) on new financed vehicles averaged 5.4% in December 2019, compared to 5.5% in November 2019 and 5.9% in December of 2018.
Edmunds data reveals that 22.4% of shoppers who financed their vehicle purchases in December 2019 got an interest rate below 3%, compared to 20.4% of those who financed purchases in December 2018.
Although interest rates took a dip, new vehicle prices hit near-record highs in December. Edmunds data reveals that the average transaction price for a new vehicle will climb to $38,377 in December 2019, compared to $37,260 in 2018 and $33,773 five years ago.
“The December numbers aren’t always indicative of larger market trends because people tend to buy pricey luxury vehicles, trucks and SUVs this time of year. This drives up the average transaction price and lowers the average APR since these shoppers can usually qualify for the lowest promotional rates,” said Caldwell. “But the fact that rates have been on a steady decline for the last several months bodes well for more favorable financing conditions in 2020.”
Find out more at www.edmunds.com.
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