Tue Mar 3, 2020 9:00am EST
The average interest rate on a new car loan is expected to see a notable year-over-year drop, but analysts say zero percent finance offers remain scarce

SANTA MONICA, Calif., March 3, 2020 /PRNewswire/ -- The average interest rate for a new vehicle loan stayed under 6% for the eighth month in a row, according to the car shopping experts at Edmunds. The annual percentage rate (APR) on new financed vehicles averaged 5.6% in February, compared to 6.3% in 2019 and 5% five years ago. Edmunds data reveals that the share of sales with 0% finance deals stayed flat at 3.6% in February, unchanged from January.

"Interest rates on new cars are in a really stable place right now," said Jessica Caldwell, executive director of insights at Edmunds. "February is a slower month for auto sales, so shoppers heading to the dealership at this time of year are probably not going to find much in the way of big promotional offers, but they're definitely getting better interest rates than if they tried shopping at this time just a year ago."

More insight into recent auto industry trends can be found in the Edmunds Industry Center at https://www.edmunds.com/industry/insights.html.

New-Car Finance Data


February 2020

February 2019

February 2015

Term

69.8

69.4

67.6

Monthly Payment

$569

$556

$492

Amount Financed

$33,583

$32,071

$28,686

APR

5.6

6.3

5.0

Down Payment

$4,301

$4,187

$3,493

Used-Car Finance Data


February 2020

February 2019

February 2015

Term

67.4

67.4

65.6

Monthly Payment

$411

$409

$373

Amount Financed

$22,364

$21,861

$19,702

APR

8.3

9.0

9.0

Down Payment

$2,707

$2,638

$2,369

About Edmunds
Edmunds guides car shoppers online from research to purchase. With in-depth reviews of every new vehicle, shopping tips from an in-house team of experts, plus a wealth of consumer and automotive market insights, Edmunds helps millions of shoppers each month select, price and buy a car with confidence. Regarded as one of America's best workplaces by Fortune and Great Place to Work, Edmunds is based in Santa Monica, California, and has a satellite office in Detroit, Michigan. Follow us on Twitter, Facebook and Instagram.

CONTACT: 
Talia James-Armand
Senior Manager, Public Relations
PR@Edmunds.com
310-309-4900
http://edmunds.com/about/press

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/auto-loan-interest-rates-stay-below-6-in-february-for-eight-month-streak-according-to-edmunds-301015158.html

SOURCE Edmunds