Used cars can be costly, but thanks for multiple financing options, drivers have some flexibility when crafting their budget. Luckily for many prospective buyers, the auto loans landscape has become much more hospitable than in the past. <\/p>\n
According to data from Experian Automotive, interest rates for auto loans have hit an all-time low. The current average rate now sits at 4.27 percent, which is the lowest mark since the organization began tracking it in 2008. That rate, combined with a longer loan period – an average of 65 months – allows many drivers to take advantage of lower monthly payments. <\/p>\n
"With loan rates at historic lows, car shoppers were able to take advantage and get a little more vehicle for their monthly payment," said Melinda Zabritski, senior director of automotive credit for Experian Automotive. "It's a win for everyone, as shoppers perceive they are getting better deals, and manufacturers and dealers are boosting sales." <\/p>\n
The data found that average monthly payments for used cars stayed relatively flat at $350. That is despite a small jump in the total amount of financing needed for pre-owned vehicles, which rose from $17,577 in the third quarter of 2012 to $17,900 this year. Also holding steady was the average credit score of individuals who invested in a used car, which remained at 668. <\/p>\n