- 4.03% (60-month, new car)
- 4.71% (36-month, used car)
Average rates on new car loans plummeted this week as lenders revved up competition, according to Bankrate's latest survey of interest rates.
The average 60-month new auto loan plunged 11 basis points to 4.03 percent. The 48-month and 36-month new car loan rates each fell 9 basis points, to 3.97 percent and 3.95 percent, respectively.
A basis point is one-hundredth of 1 percent.
At least part of the reason for this week's drop in average rates is that a major lender in the marketplace dramatically reduced some of its loan rates in certain metro areas surveyed.
"The action on car loan rates this week is a reflection of continued competition," says Greg McBride, CFA, Bankrate's chief financial analyst. "Car loan shoppers can still find plenty of rates in the low single digits on new cars, and many that apply to used car loans, as well. It is important to shop around."
While not as striking a decline as with the new car loan rates, the average 48-month used car loan also fell this week, from 4.79 percent to 4.77 percent. The average 36-month used car loan stayed at 4.71 percent for the third week in a row.