Car loan rates for new vehicles hit lowest in 9 years

As is happening with the home loan market, new car loans are hitting all-time lows, allowing those with good credit to get into new vehicles at a price lower than before. Before you go and get all excited however, bear in mind that those figures are based on average rates for a new car purchase in December, when the most affluent buyers are most apt to buy, and coincidentally tend to have the best credit, and thus the lowest rate.

“You can only buy a car in December if you’re financially well off,” Edmunds analyst Ivan Drury said. He explained that holiday presents, travel and other big-ticket costs often keep moderate consumers from the auto dealerships at the end of the year.

Also skewing the numbers, was the fact that many manufacturers offered incentives in December that involved reduced interest or no interest loans. More than half of Buick’s sales in December were financed through no interest loans, and 40% of Toyota’s met the same conditions.

– By: Stephen Calogera

Source: CNNMoney