Auto Loan Interest Rates Stay Below 6% in August, According to Edmunds
Zero percent finance offers see a slight lift in August thanks to Labor Day weekend, model-year sell-down promotions

SANTA MONICA, CA — September 4, 2019 — The average interest rate for a new-vehicle loan stayed under 6% for the second month in a row in August, according to the car shopping experts at Edmunds. The annual percentage rate (APR) on new financed vehicles averaged 5.8% in August, compared to 5.8% in July and 6% in June. Edmunds data reveals that the share of sales with zero percent finance deals saw a slight lift in August, constituting 6.1% of financed purchases in August compared to 5.8% in July. The average down payment for a new vehicle also dipped in August, dropping under $4,000 for the first time in more than a year.

"Shoppers who made it to the dealership this Labor Day weekend got to take advantage of slightly more generous offers than we've been seeing all year, but this shouldn't be taken as a sign of a dramatic turnaround in the market," said Jessica Caldwell, Edmunds' executive director of industry analysis. "The model-year sell-down is still in full swing, and automakers and dealers are moving things along just like they should at this time of year."

The summer sell-down season also coincides with hurricane season, and Edmunds analysts are keeping a close eye on how Hurricane Dorian may impact automakers.

"Hurricane Dorian might have delayed some new vehicle purchases, but its overall impact on August sales appears to be fairly nominal," said Caldwell. "We'll be keeping a close eye to see how it may impact numbers in September as its track inches closer to the U.S. mainland."

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

August 2019 August 2018 August 2014
Term 69.6 68.6 66.8
Monthly Payment $556 $536 $474
Amount Financed $32,590 $30,993 $27,981
APR 5.8 5.8 4.1
Down Payment $3,991 $4,056 $3,398
Average Transaction Price $37,051 $36,041 $32,027

Used-Car Finance Data

August 2019 August 2018 August 2014
Term 67.4 66.9 65.3
Monthly Payment $412 $400 $374
Amount Financed $22,252 $21,596 $20,322
APR 8.5 8.3 7.5
Down Payment $2,655 $2,601 $2,241

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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