Fed: Average Auto Loan Interest Rate Creeps Higher

By Jennifer Reed, Auto Group Editor
June 09, 2009

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WASHINGTON, D.C. — After plummeting to a record low in March, interest rates on new-car loans at auto finance companies showed a slight uptick in April, coming in at 2.79 percent, compared with 2.74 percent in March.

Meanwhile, the Federal Reserve also reported that the amount financed now stands at the second highest level on record at $28,115, compared with $27,999 in March. The only figure higher is from the first quarter of 2008 when this number came in at $28,174.

The average maturity level on new-car loans at auto finance companies remained stable at 61.2 months, which is identical to March.

Also, the median loan-to-value ratio also stayed flat at 89 month-over-month.

Unfortunately, the average interest rate on a new-car loan at commercial banks was not available for April or March. The last reported figure was 6.92 percent in February. This is also the final number for the first quarter.

Overall, the Federal Reserve indicated, "Consumer credit decreased at an annual rate of 7.5 percent in April 2009. Revolving credit decreased at an annual rate of 11 percent and non-revolving credit decreased at an annual rate of 5.25 percent."

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