The Federal Open Market Committee announced the cutting of interest rates in September but as the calendar turns to October auto finance rates are not experiencing a significant decline.
According to the latest Cox Automotive Auto Market Report, used car rates averaged 13.93 percent at the end of September, an increase of one basis point. New car rates were at 9.54 percent.
“The Fed cut but auto loan rates are little changed so far,” said Cox Automotive Chief Economist Jonathan Smoke. “The Fed did a larger than expected 50 basis points cut two weeks ago but yields have since increased and auto rates are little changed.
“Despite the minimal movement in September, this is the first month since the spring of 2022 that auto rates are down on a year-over-year basis.”
Used vehicle loan rates peaked at 14.59 percent in February.
Used vehicle sales were up in September by 6 percent. For 2024, used vehicle sales have increased by 3 percent versus 2023.
