Fed Reports Latest Auto Finance Statistics
WASHINGTON, D.C. — The average interest rate on a new-car loan at auto finance companies appears to be climbing, while maturity length is declining, according to the latest preliminary data from the Federal Reserve.
More specifically, the Fed found that the average interest rate on a new-car loan at auto finance companies came in at 8.42 percent in December, compared with 6.43 percent in November and 6.41 percent in October.
Meanwhile, the length to maturity dropped to 59.8 months in December, compared with 63.2 months in November and 63.9 months in October.
Also, the Federal Reserve discovered that the amount being financed at auto lenders has also declined, coming in at $22,769 in December, as opposed to $25,041 in November and $25,391 in October.
Unfortunately, the average interest rate on a 48-month new-car loan via commercial banks was not available. The last statistic in this category was 7.05 percent in November.
Overall, the Fed reported that "Consumer credit decreased at an annual rate of 3 percent in the fourth quarter. Revolving credit decreased at an annual rate of 5.5 percent and non-revolving credit decreased at an annual rate of 1.75 percent. In December, consumer credit decreased at an annual rate of 3 percent."