- 5.45% (60-month, new car)
- 6.48% (36-month, used car)
Auto loan rates rose by a few basis points across the board this week. The average rates for 48-month new-car loans and 60-month new-car loans added 2 basis points apiece and are now 5.42 percent and 5.45 percent, respectively. A basis point is one-hundredth of 1 percentage point.
Used-car loan rates also were up. The average rate for a 36-month used-car loan ticked up 1 basis point, to 6.48 percent.
Kelley Blue Book predicts a rush of vehicle incentives at the end of this year as Japanese and domestic brands vie for sales in the fourth quarter.
Japanese brands have recovered from production shortfalls caused by the earthquake and will look to increase sales of 2011 models as 2012 redesigns hit U.S. shores, according to the report. To do it, they'll likely boost incentives, which could touch off an incentive war with U.S. brands to the benefit of U.S. consumers.