Fed: Interest Rates at Auto Lenders Plunge, Amount Financed Bounces Back
WASHINGTON, D.C. — The average interest rate on new-car loans at auto finance companies plummeted from 5.49 percent in June to 3.31 percent in July, according to the latest consumer credit data from the Federal Reserve.
The average interest rate is also down from 5.82 percent in May and 5.28 percent in the second quarter.
Another significant trend SubPrime Auto Finance News discovered is that the median amount financed bounced back in July, coming in at $27,528, compared to $24,505 in June and $24,579 in May. For the second quarter, this statistic averaged $25,493 at auto finance companies.
Continuing on, the Federal Reserve reported that the maturity rate at auto finance companies came in at about 67.2 months for July, compared to 63.5 in June and 64 in May. This figure was 63.5 in the second quarter.
As for loan-to-value ratios, in July this number was 96, compared to 93 in June and 92 in May. For the second quarter it was 93.
Meanwhile, looking at 48-month new-car loans at commercial banks, unfortunately, SubPrime found that the average APR was not available for June or July; however, this figure came in at 6.81 percent in May. In the second quarter, APR averaged 6.81 percent and it was 7.27 percent in the first quarter.
Overall, the Federal Reserve Board indicated, "Consumer credit increased at an annual rate of 2 percent in July. Revolving credit rose at an annual rate of 4.75 percent, and non-revolving credit rose at an annual rate of 0.5 percent."