Auto Loans
Rates: 7.07 percent (60-month, new car); 7.86 percent (36-month, used car)This week in the interest rate roundup, new car loans are slightly more expensive -- by about 1 or 2 basis points.
The 60-month, new-car loan rate is up 2 basis points to 7.07 percent. The 48- and 36-month loans are up 1 basis point to 7.06 percent and 6.96 percent, respectively.
The 36-month, used-car loan held tight to its rate from last week, 7.86 percent. The 48-month, used-car loan rate gained 1 basis point to come in at 7.96 percent.
On Tuesday, Daniel Gross, writing for Slate.com, explained why GM could likely be in bankruptcy by its June 1 deadline. The sticking point is the billions of dollars bondholders stand to make if GM defaults thanks to credit default swap contracts.
Therefore bondholders have little reason to exchange their holdings for 10 percent of GM stock, which, in the event that GM fails, would be worthless.
In other news, if you happen to be in the market for a new car, there's a relatively new site, Truecar.com, to help you research pricing. It even breaks down the average price paid by other consumers, the dealer cost and sticker price into a nifty bell curve chart. Buyers can easily see the number they should be shooting for in negotiations.
To find updated auto rates in your area, visit Bankrate's auto rate table.
-- Sheyna Steiner