Figure 26. Rate of interest on car and truck loans (by supply of the mortgage)

Note: Among participants who took down financing to shop for a car into the previous 12 months.

This greater tendency of sub-2-percent rates of interest from vehicle dealers than from banking institutions or any other loan providers does work for purchasers of both brand brand new and cars that are used. But, within the car that is used here is also proof of customers getting costly funding with greater regularity from automobile vendors than they are doing from banking institutions, credit unions, or Web loan providers. Among consumers whom bought a car or truck from the dealership or automobile great deal, one-tenth of the whom financed the automobile through the vendor spend a pursuit price of over 10 %. In contrast, just 5 percent of car or truck loans from banking institutions, credit unions, or Internet loan providers have interest rate that is double-digit. Continue Reading ->