April 18, 2019
The cost of buying a car keeps going up, and I'm not just talking about the sticker price.
New car auto loan rates nationwide hit a 10-year high last month, according to an analysis by Edmunds, with the annual percentage rate expected average 6.36 percent. Many buyers pay a much higher rate because of less than good credit.
At the same time, manufacturers are cutting back on zero finance offers.
To get a monthly payment they can afford, many buyers are taking out longer loans. The average new car loan is now 70 months or nearly 6 years, Edmunds reports. That's a long time.
Remember, the longer the term, the more interest you'll pay on the loan, which drives up the overall cost of that purchase.