Auto Loan Rates Dropping

 
According to Comerica Bank’s Auto Affordability Index the average auto loan rates and affordability fell in the fourth quarter of last year. They said that the average auto loan rate dropped to 3.47% which is simply amazing. There are many people out there that would like to take out an auto loan but have been afraid to because of the rates that some of the banks were offering, but this report shows that this does not have to be the case. Instead, this means that there are a number of people who will be able to afford an auto loan this year.
 
But you have to be careful, as the auto affordability index was down as well. This means that there are those that will not be able to afford a new car because the price of them has risen. They said that the average price of a new car has gone up, and they think that a lot of this has to do with the Cash for Clunkers program. There were so many people that were now able to afford a new car because of the rebate that they got from their old car that the car dealers started raising their pricing again on the cars.
 
Instead of being in a place where they were scrambling for your money, they were now able to raise pricing and make themselves some money off of the cars – not that they weren’t doing that already. The automobile industry was now given the opportunity to price their cars higher because there was more of a demand for them.
 
So although things look better for those that were worried about paying higher interest rates – there is still some concern for those people who are looking for a new car as they may be out of their casinos’ reach.

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