October car loans remain surprisingly cheap

car loans

Financing a car or truck is remaining quite affordable. Car loan rates are staying low.

Most buyers will pay only a few dollars more per month than they would have back in 2013, when interest rates fell to record lows on virtually every type of auto financing.

Car companies are also offering cut-rate car loan rates — typically 0% to 3.9% — on a slew of 2017 models.

Buyers with reasonably good credit can qualify for that discount financing or pay considerably less than average for a regular car loan.

Search our database of the best auto loan rates from dozens of lenders in your area to see if you can find a better deal.

Finding the cheapest possible financing is increasingly important as the size and length of new-car loans continues to grow.

Average car loan rates for October 2017

Source: Interest.com weekly survey on October 11, 2017

Type of financing Interest rate
48 months new 4.20%
60 months new 4.26%
36 months used 4.76%

 

What to expect when getting a loan

The average new-car loan rose to $30,234 during the second quarter of 2017, according to Experian, one of the three major credit-reporting agencies.

The average loan term has also grown to a whopping 68 months, committing borrowers to longer repayment plans.

Of course, how much you'll pay, or whether you'll get a loan at all, is heavily dependent on your credit score.

But it's just as easy to finance a new ride now as it was before the financial crisis and recession.

Back in late 2007, the average borrower had a credit score of 711, according to Experian.

As delinquencies and repossessions soared during the downturn, lenders made it harder to get a loan.

By the time the recession ended in 2009, the average score had risen to 738. But in the second quarter of 2017, it was down to 714.

During the second quarter — April through June — the average cost of new-car loans for borrowers with the best credit (what the industry calls "super prime" borrowers with credit scores of 781 and above) was 3.05%.

 

5 simple steps to the best deal

If you're in the market for a new car or truck, you need the right information and a savvy negotiating strategy to drive away with the lowest price and cheapest loan. Without that, you'll wind up paying thousands more than you need to — almost guaranteed. Let us show you how to be a smart, confident buyer.

 

Discounts from carmakers

Borrowers with excellent credit are eligible for lots of juicy discount loans that carmakers offer through their lending divisions, such as GM Financial and Honda Financial Services.

At least nine brands are offering 0%, for as long as 72 months.

Ford, for example, is offering 0% financing for up to 60 months on its 2017 Focus, a sedan. Chevy is offering 0% financing for 72 months on its Malibu, a sedan.

Bankrate's Auto Loan Calculator can help you make the right choice and save the most.

Click here to find all of the current automaker incentives.

The subprime loan market

About 1 in every 5 auto loans is made to a borrower with poor credit.

Those car buyers already pay three to four times more to finance a new car or truck.

The average cost of subprime loans (credit scores of 600 and lower) was 11.35% in the second quarter of 2017.

 

How much should you spend on a car?

Just because the monthly payments won't break you doesn't mean it's a good idea to let car payments gobble up a huge chunk of your paycheck. Here's a quick and easy way to figure out how much you can afford to spend on a new car or truck.

But overall, there's lots of money to lend on cars and trucks.

Outstanding balances on car loans reached $1.1 trillion in the second quarter 2017,  according to Experian.

RATE SEARCH: Compare auto loan rates.

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    Before making a car purchase, buyers should evaluate their income levels. Conventional wisdom suggests that individuals should not pay more than 10 to 20 percent of their income on monthly car payments. Everyone, however, has their own comfort level for affordability. Some people are willing to exceed the 20 percent threshold limit by cutting costs on entertainment or disposable items.

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  • christy walton

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  • Julien Macher

    My Name is Julien Macher, I live in USA and life is worth living comfortably for me and my family now and i really have never seen goodness shown to me this much in my life, As i am a struggling mum with two kids and i have been going through a serious problem as my husband encountered a terrible accident last two weeks, and the doctors states that he needs to undergo a delicate surgery for him to be able to walk again and i could not afford the bill for his surgery then i went to the bank for a loan and they turn me down stating that i have no credit card, from there i ran to my father and he was not able to help me, then when i was browsing through yahoo answers and i came across a God fearing man (Mr John Paul) who provides loans at an affordable interest rate and i have been hearing about so many scams on the Internet mostly Africa, but at this my desperate situation, i had no choice than to give it an attempt due to the fact that the company is from United State of America, and surprisingly it was all like a dream, i received a loan of $100,000.00 USD and i payed for my husband surgery and thank GOD today he is ok and can walk, my family is happy and i said to myself that i will shout to the world the wonders this great and God fearing Man Mr John Paul did for me and my family; so if anyone is in genuine and serious need of a loan do contact this GOD fearing man via Email: ( johnpaulloanservice@yahoo.com ) or call Tel: +447031941969 thanks

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    Gracias.

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    Hello applicant

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  • Mary Schmidt

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  • anderson wind

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  • FIDELITY LOAN FINANCE

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    )Thank you,

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    .
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  • Mike Robert

    **AVOID SCAMMERS**

    Hello,

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  • Ray Keith

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  • James Caver

    Mr James Caver

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  • mark

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  • OLIVER JOHNSON MOORE

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    Attention,

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    Thanks for reading this advert.

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    ......

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  • Robin Lamura

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  • vivdia adams

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    we always deliver on time and precision as Set forth in the agreement. You are at liberty to engage our leased facilities into trade programs, project financing, Credit line enhancement, Corporate Loans (Business Start-up Loans or Business Expansion Loans), Equipment Procurement Loans (Industrial Equipment, Air crafts, Ships, etc.) as well as other financial instruments issued from AAA Rated bank such as HSBC Bank Hong Kong, HSBC Bank London, Deutsche Bank AG Frankfurt, Barclays Bank , Standard Chartered Bank and others on lease at the lowest available rates depending on the face value of the instrument needed, Our Terms and Conditions are reasonable.
    DESCRIPTION OF INSTRUMENTS:
    1. Instrument: Bank Guarantee (BG)/SBLC (Appendix A)
    2. Total Face Value: 10M MIN to 50B MAX USD or Euro
    3. Issuing Bank: HSBC, Deutsche Bank Frankfurt, UBS or any Top 25 .
    4. Age: One Year, One Day
    5. Leasing Price: 4+ 1%
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    If you have need for Corporate loans, International project funding, etc. or if you have a client that requires funding for his project or business, We are also affiliated with lenders who specialize on funding against financial instruments, such as BG, SBLC, POF or MTN, we fund 100% of the face value of the financial instrument.
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    we always deliver on time and precision as Set forth in the agreement. You are at liberty to engage our leased facilities into trade programs, project financing, Credit line enhancement, Corporate Loans (Business Start-up Loans or Business Expansion Loans), Equipment Procurement Loans (Industrial Equipment, Air crafts, Ships, etc.) as well as other financial instruments issued from AAA Rated bank such as HSBC Bank Hong Kong, HSBC Bank London, Deutsche Bank AG Frankfurt, Barclays Bank , Standard Chartered Bank and others on lease at the lowest available rates depending on the face value of the instrument needed, Our Terms and Conditions are reasonable.
    DESCRIPTION OF INSTRUMENTS:
    1. Instrument: Bank Guarantee (BG)/SBLC (Appendix A)
    2. Total Face Value: 10M MIN to 50B MAX USD or Euro
    3. Issuing Bank: HSBC, Deutsche Bank Frankfurt, UBS or any Top 25 .
    4. Age: One Year, One Day
    5. Leasing Price: 4+ 2%
    6. Sale Price: 32+2%
    7. Delivery by SWIFT .
    8. Payment: MT103-23
    9. Hard Copy: Bonded Courier within 7 banking days.
    If you have need for Corporate loans, International project funding, etc. or if you have a client that requires funding for his project or business, We are also affiliated with lenders who specialize on funding against financial instruments, such as BG, SBLC, POF or MTN, we fund 100% of the face value of the financial instrument.
    Inquiries from agents/ brokers/ intermediaries are also welcomed; do get back to us if you are interested in any of our services and for quality service.
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  • HAnde Jased

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  • William Bash

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    Attn:

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  • Jason Grey

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