APR on Auto Loans Goes Down

 
The Federal Reserve was happy to report that the average interest rate for auto loans in the US had dropped in December. This is good news for residents as they had seen the numbers starting to rise again and many were worried that the auto loans that they had been working to get might be moving out of their reach.
 
In fact, they have dropped to 3.26% in December. In September they were 3.50%, in October they were 3.42% and in November they were 3.73%. This drop is a welcome sign to not only those that are looking to get auto loans, but also those that are looking to give them out. They know that when the average auto loan interest rate goes up they have a harder time getting people to purchase cars.
 
The Federal Reserve also said that the average new car auto loan was 64 months for December, whereas in November it was 63.4 months and in October it was 64 months. The lowest auto loan maturity level was the first quarter of last year when it was 59.3 months. This means that more people may have been able to afford auto loans because of the drop in interest, but that the auto loan period was higher than that of the beginning of the year, but relative to what they had seen over the course of the past couple of months.
 
They also said that with so may consumers choosing not to take on any credit of any kind at this time, that these numbers were a positive sign. They said that consumer credit dropped 4.75% in the fourth quarter of the year, with revolving credit decreasing at 13% and non revolving not really changing. So most people who had mortgages and auto loans were keeping them or they were getting others to replace them, while fewer people were buying into the credit card industry and more were getting rid of what they had.

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