Auto Loans
Rates: 6.96 percent (60-month, new car); 7.82 percent (36-month, used car)Car loan rates fell for the third week in a row, further sweetening deals for those taking advantage of the government's new "cash for clunkers" program, which officially kicked off Monday.
The 48-month and 60-month new-car loans each fell 2 basis points, to 6.97 percent and 6.96 percent, respectively. Meanwhile, the average rate for a 36-month used-car loan held steady at 7.82 percent.
Already, 16,351 cars and light trucks had been sold under the CARS Act ("cash for clunkers"), says Eric Bolton, a spokesman for the National Highway Traffic Safety Administration. Those vehicles accounted for just over $68 million of the $1 billion authorized by Congress, he says.
That's good news for dealerships hard-hit by the prolonged slump in the U.S. new-car market. "Showroom traffic is up and early sales are exceeding expectations," says a spokesman for the NADA. "How long the $1 billion for the program will last is anybody's guess, but this is a worthwhile program. So if the money runs out, NADA will seek additional funding."
To find updated auto rates in your area, visit Bankrate's auto rate table.
-- Claes Bell