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Auto rates for Oct. 27, 2011

 

 

I'm Greg McBride, senior financial analyst with Bankrate.com and here is your weekly look at auto loan rates.

New car loan rates inched lower this week, with the average 4-year rate settling at 5.3 percent and the average 5-year rate at 5.32 percent.

Used car loan rates pulled back too, with the average 3-year rate reversing ground to 6.36 percent and the 4-year used car rate now 6.24 percent.

Despite all the ups and downs in recent months, auto loan rates are about three-quarters of a percentage point lower than where they started the year. And the range of rates remains extremely wide, with the best rates under 3 percent while other lenders are well into the double digits.

With sub-3 percent rates, some savvy borrowers are opting for the unconventional step of longer-term loans, since after factoring in inflation, its like borrowing the money for free. The people that can best pull this off though, are those that really don't need to borrow the money to begin with.

For more information on auto loan rates, and to see the lowest car loan rates in your area, visit Bankrate.com.

I'm Greg McBride.

 

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