The Latest Auto Loan Rate Trends 2019 to Know Before You Buy a Car

The automobile industry is booming in 2019 with new cars and bikes hitting the market every other day. Whether you are planning to buy a compact RDX, Subaru Outback, or a Ford Ranger; each of the vehicles offers advanced features including Bluetooth connectivity, a parking camera, automatic windows, navigation options, and much more.

What are the Current Auto Loan Rate Trends 2019 I need to know about?

Before you finalize your decision, you need to know the current auto loan rate trends to get the best auto loan rate.

1. Slow Car Sales

Both urban and millennial are avoiding purchasing a new car as they find Uber and other public transport easy to manage. The millennials have put less focus on the idea that material possessions reflect one’s status, and are not eager to buy a car. It is owing to this fact that car manufacturers and dealers would offer more incentives with car prices expected to remain steady from 2018 to 2019.

2. Less Loan

The technological advancements including cloud processing, automated loan application review, and digital documents have led to a decreased labor cost for loan lenders. In such a competitive environment, lenders would need to compete for the right price. Hence, the buyer has more power to negotiate the cost of the vehicle. It is another auto loan rate trends of 2019.

3. Rising Interest Rates

With the economy thriving, the Federal Reserve has raised the federal funds rate eight times since the end of the Great Recession. It is presently at 2.25%, and most economists predict that the Federal Reserve would bump rates three more times in 2019, and one again in 2020. With the federal funds rate going at 3.25%, the average auto loan is bound to rise.

However, the trick is when auto loan interest rates would rise, car manufacturers would compensate with lower prices. They would know how much the consumers would spend each month on the car payment. Hence, when you would visit an auto dealership, do not be surprised if the 1% interest rate disappears.

4. The Eight-Year Car Loans

Cars are beginning to last longer with Toyotas and Hyundai cars getting the maximum praise for working over 200,000 miles. According to an automobile website, American models including Chevy Impala and LaCrosse also come in the 200,000 miles. Every new car is being built to last longer. Even taxis including Priuses last longer than 600,000 miles. If you are among those who want their vehicles to perform for a more extended period, then you can get one with an eight-year car loan period. Although these might require more interest payments, you can use the money in other investment.

Thus, these are the recent auto loan trends to know about in 2019, which will help you secure a car or bike loan without any hassles.

Summing Up

Thus, if you want to buy a new vehicle for personal or commercial use, then you can follow these auto loan rate trends of 2019 to get the best price.