Edmunds.com: Average Car Loan Interest Rate Drops to Record Low
SANTA MONICA, Calif. — The average automobile finance rate dropped to 4.4 percent in March, Edmunds.com reported. This is the lowest rate since 2002; a year ago, the average interest rate for the industry was 5.8 percent.
Of all brands, Toyota had the lowest average finance rate, 1.9 percent. Mazda's average finance rate was next lowest at 2.5 percent and Mercury was third at 3.3 percent. On the other end of the spectrum, Kia had the highest average interest rate in March, 7.1 percent.
"Low interest financing is compelling for consumers because those who qualify often enjoy greater savings than they would get from a cash-back offer," said Jessica Caldwell, senior analyst for Edmunds.com. "Low APR offers are also better for automakers, because they are less damaging to brand image and residual values."
Other finance trends for March include:
Of all luxury brands, BMW had the highest average down payment, $13,614, and the shortest average loan term, 52.4 months. Luxury automakers took the top eight spots in March for shortest average loan length.
Of all non-luxury brands, Subaru had the shortest average loan term, 60.9 months, and highest average down payment, $3,911.
Dodge had the industry's longest average loan term, 67.0 months, followed by Chevrolet at 66.6 months and Hyundai and Kia at 66.1 months.
Scion buyers financed the lowest average dollar amount, $18,978, and the lowest average monthly payment, $348.
Mercedes-Benz buyers financed the highest average dollar amount, $40,737, and had the industry's highest average monthly payment, $827.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →