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Edmunds.com: Average Car Loan Interest Rate Drops to Record Low

April 14, 2010
2 min to read


SANTA MONICA, Calif. — The average automobile finance rate dropped to 4.4 percent in March, Edmunds.com reported. This is the lowest rate since 2002; a year ago, the average interest rate for the industry was 5.8 percent. Of all brands, Toyota had the lowest average finance rate, 1.9 percent. Mazda's average finance rate was next lowest at 2.5 percent and Mercury was third at 3.3 percent. On the other end of the spectrum, Kia had the highest average interest rate in March, 7.1 percent. "Low interest financing is compelling for consumers because those who qualify often enjoy greater savings than they would get from a cash-back offer," said Jessica Caldwell, senior analyst for Edmunds.com. "Low APR offers are also better for automakers, because they are less damaging to brand image and residual values." Other finance trends for March include:

  • Of all luxury brands, BMW had the highest average down payment, $13,614, and the shortest average loan term, 52.4 months. Luxury automakers took the top eight spots in March for shortest average loan length.

  • Of all non-luxury brands, Subaru had the shortest average loan term, 60.9 months, and highest average down payment, $3,911.

  • Dodge had the industry's longest average loan term, 67.0 months, followed by Chevrolet at 66.6 months and Hyundai and Kia at 66.1 months.

  • Scion buyers financed the lowest average dollar amount, $18,978, and the lowest average monthly payment, $348.

  • Mercedes-Benz buyers financed the highest average dollar amount, $40,737, and had the industry's highest average monthly payment, $827.

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