Friday, February 6, 2009

Auto Financing Rates on the Rise

Source: Federal Reserve Statistical Release G.19 Consumer Credit, Release February 6, 2009

As the automotive industry watches sales plummet, the interest rates on auto loans has increased.

New data released today by the Federal Reserve shows that the interest rate for new car loans has at auto finance companies has increased to 8.42 percent in December of 2008 from 6.41 percent in October. These rates have been on the rise since July, the December figure is the highest since 1997. This likely explains some of the fall off. In a future post, I hope to compare these rates to other consumer credit rates.

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