- 4.18% (60-month, new car)
- 4.71% (36-month, used car)
Rates on new and used car loans fell this week, according to Bankrate's latest survey of interest rates.
However, the drop in loan rates is likely not as large as the survey shows, due to a change in how the survey was conducted.
"Although auto loan rates were down this week, the magnitude of the decrease was exaggerated by something that wasn't a rate change at all," says Greg McBride, CFA, Bankrate's senior financial analyst. He said a bank merger prompted a swapping of institutions in the survey, affecting the week's average rate decreases.
"Nonetheless, auto loan rates are moving lower, and that is good news for car shoppers," McBride says.
The average rates for new car loans fell 5 basis points across the board, meaning a 60-month new car loan fell from 4.23 percent to 4.18 percent. The average rates for 48-month and 36-month new car loans fell to 4.09 percent and 3.99 percent, respectively.
A basis point is one-hundredth of 1 percentage point.
Used car loans also fell this week, with the average rate on a 36-month used car loan falling 8 basis points to 4.71 percent. A 48-month used car loan fell from an average of 4.96 percent to 4.89 percent.
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