Auto Loan Interest Rates Stay Below 6% for Fourth Month in a Row in October, According to Edmunds
Average interest rate on a new vehicle loan expected to stay flat month-over-month as automakers, dealers continue model-year selldown efforts

SANTA MONICA, CA — November 1, 2019 — 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."

More insight into recent auto industry trends can be found in the Edmunds Industry Center at https://www.edmunds.com/industry/insights.html.

New-Car Finance Data

October 2019 October 2018 October 2014
Term 69.7 69.1 67.0
Monthly Payment $565 $542 $486
Amount Financed $33,238 $31,200 $28,480
APR 5.7 6.2 4.4
Down Payment $4,123 $4,063 $3,492
Average Transaction Price $37,886 $36,542 $33,001

Used-Car Finance Data

October 2019 October 2018 October 2014
Term 67.5 67.0 65.5
Monthly Payment $418 $405 $370
Amount Financed $22,661 $21,735 $20,017
APR 8.4 8.7 7.8
Down Payment $2,638 $2,615 $2,143

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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