New-vehicle APR remains under 6 percent in August

The average interest rate for a new-vehicle loan remained below 6 percent in August, according to Edmunds analysts.

The annual percentage rate (APR) on new financed vehicles averaged 5.8 percent, the same average as July, compared to 6 percent in June. July had been the third consecutive month the average had dropped.

The average down payment for a new vehicle fell in August, dropping below $4,000 for the first time in more than a year. Additionally, Edmunds finds that the share of sales with zero-percent finance deals increased in August to 6.1 percent. The figure was 5.8 percent in July.

"Shoppers who made it to the dealership this Labor Day weekend got to take advantage of slightly more generous offers than we've been seeing all year, but this shouldn't be taken as a sign of a dramatic turnaround in the market," said Jessica Caldwell, Edmunds' executive director of industry analysis. "The model-year sell-down is still in full swing, and automakers and dealers are moving things along just like they should at this time of year."

New-Car Finance Data


August 2019
August 2018
August 2014
Term
69.6
68.6
66.8
Monthly Payment
$556
$536
$474
Amount Financed
$32,590
$30,993
$27,981
APR
5.8
5.8
4.1
Down Payment
$3,991
$4,056
$3,398
Average Transaction Price
$37,051
$36,041
$32,027


Used-Car Finance Data


August 2019
August 2018
August 2014
Term
67.4
66.9
65.3
Monthly Payment
$412
$400
$374
Amount Financed
$22,252
$21,596
$20,322
APR
8.5
8.3
7.5
Down Payment
$2,655
$2,601
$2,241
Want to get notified whenever we write about Edmunds.Com ?
Next time we write about Edmunds.Com, we'll email you a link to the story. You may edit your settings or unsubscribe at any time.
Organizations in this story

Edmunds.Com