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Auto rates for May 2, 2013

 

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, reversing last week's move, with the average four-year loan rate retreating to 4.03 percent and the average five-year rate now at 4.11 percent. Yes, that's right. The rate is higher on a longer-term loan, which negates some of the benefit of stretching the loan to get a lower monthly payment. Of course, the other risk of stretching into a longer-term loan is being upside-down -- or owing more than the car is worth -- for a longer period of time. After all, vehicles depreciate the fastest right after they're driven off the lot.

Used-car loan rates were unchanged, with the average four-year used-car rate holding at 4.51 percent.

For more information on auto loans and to find the best car loan rates in your area, check out the free search engine at Bankrate.com.

I'm Greg McBride.

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