Auto Loan Interest Rates See Slight Lift in January, According to Edmunds
Although the average interest rate on a new-vehicle loan is expected to drop year over year, analysts say rates will hit 3-month high as automakers curtail promotional deals, 0% finance offers

SANTA MONICA, CA — February 3, 2020 — The average interest rate for a new vehicle loan saw a slight lift in January, according to the car shopping experts at Edmunds. The annual percentage rate (APR) on new financed vehicles averaged 5.7% in January, compared to 5.4% in December and 5.5% in November. Edmunds data reveals that the share of sales with 0% finance deals dropped to 3.6% in January, hitting their lowest level since April of 2019.

"January is a bit of a hangover month for auto sales given that it follows some of the biggest holiday blowout events at the end of the year," said Jessica Caldwell, executive director of insights at Edmunds. "Automakers typically rein in the incentives at this time of year, so it's not unusual to see auto loan interest rates creep up. The good news is that interest rates are still much lower than they were a year ago."

Edmunds data also shows that the average monthly payment, amount financed, and down payment for new vehicles were down month over month in January, which Edmunds experts attribute to a drop in purchases of luxury and larger vehicles.

"While December is all about flashier, bigger vehicle purchases, shoppers who make it to the dealership in January are mostly doing it out of necessity and, therefore, are a bit more pragmatic," said Caldwell.

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

New-Car Finance Data

January 2020 January 2019 January 2015
Term 69.5 69.2 67.2
Monthly Payment $567 $551 $491
Amount Financed $33,259 $31,707 $28,769
APR 5.7% 6.2% 4.5%
Down Payment $4,375 $4,191 $3,542

Used-Car Finance Data

January 2020 January 2019 January 2015
Term 67.2 67.2 65.3
Monthly Payment $407 $407 $367
Amount Financed $22,082 $21,763 $19,874
APR 8.3% 8.9% 7.5%
Down Payment $2,680 $2,614 $2,237

About Edmunds
Edmunds guides car shoppers online from research to purchase. With in-depth reviews of every new vehicle, shopping tips from an in-house team of experts, plus a wealth of consumer and automotive market insights, Edmunds helps millions of shoppers each month select, price and buy a car with confidence. Regarded as one of America's best workplaces by Fortune and Great Place to Work, Edmunds is based in Santa Monica, California, and has a satellite office in Detroit, Michigan. Follow us on Twitter, Facebook and Instagram.

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