Fed: Average APR Declines at Auto Finance Companies
WASHINGTON — The Federal Reserve recently released its latest consumer credit statistics and found that the average interest rate on an vehicle loan at auto finance companies is down, dropping slightly to 4.19 percent in March from 5.37 percent in February.
Additionally, the median term length was also down a bit to 62.3 months from 63.2 months.
As for the average loan-to-value ratio, it came in at 94 in March, compared with 95 in February, according to the Fed.
Meanwhile, the median amount financed for an auto loan inched up to $28,173, compared with $28,118.
Unfortunately, the average interest rate for an auto loan at commercial banks was not available for March. However, this statistic came in at 7.27 percent in February, which matched the preliminary figure for the first quarter of this year.
Overall, the Federal Reserve said, "Consumer credit increased at an annual rate of 5.5 percent in the first quarter of 2008. In that quarter, revolving credit increased at an annual rate of 6.75 percent and nonrevolving credit increased at an annual rate of 4.5 percent.
"In March, consumer credit increased at an annual rate of 7.25 percent," officials concluded.