The average interest rate for a 48-month new-car loan at commercial banks in November dropped to 6.55 percent, the lowest on record, according to the Federal Reserve’s data.
Buyers who apply for a car loan at the dealership through the automaker’s captive finance company will pay even less in interest. In November, the interest rate for new-car loans through auto finance companies was 3.73 percent, SubPrime Auto Finance News reports. This is a slight increase from the all-time record low of 3.42 percent in October.
In November, buyers were financing auto loans totaling $30,506, compared to $32,223 in October.
Not to sound like a broken record, but if you’re considering buying a car soon, car loan rates are still at the lowest levels in years. Paying a low percentage rate on your auto loan will save you anywhere from hundreds to thousands of dollars over the life of the car loan. Remember to try to get pre-approved first and see if the dealer can beat the interest rate on the auto loan.
Buyers are taking advantage of record-low interest rates on auto loans right now.