Auto Loan Interest Rates Hit Six-Month Low, According to New Edmunds Analysis

Auto Loan Interest Rates Hit Six-Month Low, According to New Edmunds Analysis

Automakers ramp up zero-percent finance offers to move 2017 models off dealer lots, creating sweet deals for car shoppers

SANTA MONICA, CA — August 01, 2017 — Interest rates on new-vehicle loans fell to a six-month low in July as automakers ramped up summer zero-percent finance deals, according to a new analysis from Edmunds, the leading car shopping and information platform. The annual percentage rate (APR) on new financed vehicles averaged 4.77 percent in July, down from 4.96 percent in June. And 11.3 percent of purchasers who financed took advantage of zero-percent financing, up from 9.47 percent in June and 10.2 percent a year ago.

"Zero-percent finance deals are common in the summer, but car buyers can save even more this year," said Jessica Caldwell, Edmunds executive director of industry analysis. "Even though interest rates were lower on average in July than at any time in the past six months, they're still hovering at highs not seen since 2009. These higher interest rates make zero-percent financing a big carrot for dealers seeking to lure car shoppers."

Overall, interest rates on auto financing have been higher in 2017 than in recent years. July's average APR is up 5.6 percent year over year, and is 14.2 percent higher than it was five years ago.

"In today's declining market, every sale counts," Caldwell said. "We anticipate automakers will continue to ramp up zero-percent finance offers as we get deeper into the summer sell-down season."

More insight into recent auto industry trends can be found in the Edmunds Industry Center at

July 2017 Change from
July 2016
5-Year Change
Loan Term 69.45 months 0.8% 7.0%
Monthly Payment $509 1.4% 10.7%
Amount Financed $30,689 1.6% 16.7%
APR 4.77% 5.6% 14.2%
Down Payment $3,621 7.3% 10.0%

July 2017 Change from
July 2016
5-Year Change
Loan Term 66.90 months 0.0% 5.8%
Monthly Payment $383 1.3% 4.2%
Amount Financed $21,281 0.9% 11.0%
APR 7.46% 2.3% -7.7%
Down Payment $2,468 6.6% 12.7%

About Edmunds
Edmunds is the leading car information and shopping platform, helping millions of visitors each month find their perfect car. With products like Edmunds Your Price, Your Lease and Used+, shoppers can buy smarter with instant, upfront prices for cars and trucks currently for sale at more than 13,000 dealer franchises across the U.S. Edmunds' in-house team of unbiased car shopping experts provide industry-leading vehicle reviews and shopping tips, as well as welcome all car-shopping questions to the free Shopper Advice line at 1-855-782-4711, via email at, via text at ED411 and on Twitter and Facebook. The company is regarded as one of America's best workplaces by Fortune and Great Places to Work. Edmunds is based in Santa Monica, Calif. and has a satellite office in downtown Detroit, Mich.

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