Edmunds analysts noted another dip in the new-vehicle loan average interest rate for the month of July, hitting its lowest this year.
According to its data, the annual percentage rate (APR) on new financed vehicles averaged 5.8% in July, as compared to June’s 6%. Data further shows that 35% of car buyers who financed their vehicle purchases last month obtained an interest rate under 4%, compared to 31% of those who financed purchases in June.
Jessica Caldwell, Edmunds' executive director of insights, noted that the drop in the average interest rates is attributable to dealerships and auto manufacturers’ sell down offers in an effort to clear out 2018 models in their inventory.
"The fact that there are still 2018 models sitting on dealer lots this far into the year is pretty disconcerting, but at least we're seeing that automakers and dealers are making a greater effort to get shoppers in the door," Caldwell said.
The car shopping experts at Edmunds estimate 3% of new vehicles sold in July were 2018 models.
|New-Car Finance Data|
|July 2019||July 2015||July 2014|
|Average Transaction Price||$37,030||$35,565||$32,211|