December financing rates dip for third straight month | Auto Finance News | Auto Finance News

December financing rates dip for third straight month

© Can Stock Photo / Apriori

The average interest rates on new-vehicle financing dropped for the third straight month in December 2019 — down to 5.4% — according to Edmunds data. Comparatively, the average APR on new vehicles was 5.9% in the prior-year period. December’s figure is the lowest its been since February 2018.

In addition, the number of buyers who received an APR of less than 3% jumped to 22.4%, compared with 20.4% a year ago. Yet, financiers shouldn’t be too concerned, said Jessica Caldwell, executive director of insights at Edmunds. “People tend to buy luxury vehicles, trucks and SUVs this time of year,” she said, noting that car buyers in these segments usually qualify for the lowest rates.

The average used-vehicle financing rate also posted a year-over-year decline, falling to 8.2%, compared with 8.7%.

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