If you’ve been waiting to get the lowest auto loan rate on a new car, you’ve probably missed your chance. New car loan rates are going up and have been for the past five months, according to the Federal Reserve.
In July 2010, the average new car loan rate was 3.87 percent, SubPrime Auto Finance News reports. October’s average new car auto loan rate was 4.52 percent and increased to 4.63 percent in November.
Although car loan rates keep increasing, the amount of the auto loan keeps dropping as well as the loan-to-value ratio and maturity level, or the number of months it takes for a consumer to pay the loan off.
In November 2010, the average maturity level fell to 62.8 months, which is down from 63.4 months in October. The loan-to-value ratio fell to 82 in November, which is down slightly from 83 in October.
The average amount financed in November was $27,433. This is down considerably from a high of $29,379 in January, according to SubPrime Auto Finance News.
If you have good credit, the increase in new car loan rates shouldn’t affect you. You’ll most likely qualify for the automaker’s 0 percent or low interest rates if you have a prime credit score, which will save you hundreds to thousands of dollars over the life of the car loan.