Interest rates for new vehicles slightly dropped in November

Car shopping experts at Edmunds say interest rates for new vehicles dropped slightly in November.

The annual percentage rate on new financed vehicles averaged 6.0 percent in November as opposed to October’s 6.2 percent. The decline, Edmunds experts say, is attributable to the 0 percent finance deals offered by the automakers in November.

"Car buyers got a bit of relief this month thanks to Black Friday deals, but an average interest rate above 6 percent is still a tough pill to swallow, especially for shoppers who might be coming back to the market after a number of years," Edmunds Manager of Industry Analysis Jeremy Acevedo said. "Shoppers who purchased a car in November five years ago could feasibly be facing a 47 percent increase in their interest rate this November."

Edmunds data further shows that despite the increase in 0 percent finance loans, the 0 percent finance deals decreased to 5.5 percent, the lowest November level since 2005.

"Automakers are certainly offering more 0 percent finance deals this holiday season than they have in previous months, but they're still few and far between," Acevedo said. "Consumers who are thinking of buying and are planning on financing their next purchase might want to strike while the iron is hot because these deals are not likely going to last beyond the New Year."

Edmunds provides shopping tips, in-depth vehicle reviews, automotive industry insights and researches that help car shoppers decide which car to choose.