The Federal Reserve’s data shows that the average auto loan interest rate on new car loans at auto finance companies in April was 4.13 percent.
April’s rate follows several previous months of a rate decline, SubPrime Auto Finance News reports. In March, the national average car loan rate was 4.28 percent and in February it was 4.72 percent.
The Federal Reserve also found that the average auto loan length in April was 62.8 months, or 5.23 years, which is the same as in March. In February, the average length of car loans was 62.5 months.
The loan-to-value ratio, or the amount of the auto loan compared to what the car is worth, was 88 in April, for the second consecutive month. In February, SubPrime Auto Finance News reports that it was slightly higher at 89.
The average amount that consumers financed for new car purchases fell slightly to $27,797 in April, compared with $27,912 in March and $28,040 in February.
Although the average auto loan rate continues to drop, once the economy improves, it will most likely go up. So if you plan on buying a car in the near future, take advantage of the record-low car loan rates by buying soon.
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