WASHINGTON, D.C. — Likely fueled by automakers' heavy use of incentives connected to APR, the Federal Reserve revealed the average interest rate on new-car loans at auto finance companies hit the lowest point of the year in July.

Federal officials computed the average at 3.87 percent. The average hasn't been this low since the reading in December 2009 was 3.26 percent. The average had been above 4 percent for five consecutive months with February's mark at 4.72 percent being the highest.

Continuing on, the Fed discovered that the median maturity level came in at 63.7 months in July. This reading remains on a near-steady climb since the low point of the year, which also arrived in February when it was 62.5 months.

As for the loan-to-value ratio, this figure stood at 87 in July, the third consecutive month at that level. In April it was slightly higher at 88. The Fed also mentioned the average ratio for the entire second quarter also was 87.

Meanwhile, the average amount financed rose again in July to the high point of 2010, extending a climb that began back in April. The July figure was $28,377, up from $27,980 in June. The Fed calculated the average amount for the second quarter came in at $27,888.

Unfortunately, the average interest rate on 48-month new-car loans at commercial banks was not available for July. However, this figure was 6.26 percent in May and for the first quarter of 2010.

Finally, the Federal Reserve indicated, "in July, total consumer credit decreased at an annual rate of 1.75 percent. Revolving credit decreased at an annual rate of 6.25 percent, and nonrevolving credit increased at an annual rate of 0.5 percent."