Average Finance Rate of New Car Loans at Finance Companies, Amount of Finance Weighted
This dataset tracks average finance rate of new car loans at finance companies, amount of finance weighted over time.
Latest Value
6.43
Year-over-Year Change
45.80%
Date Range
3/1/2008 - 3/1/2025
Summary
This economic trend measures the average finance rate charged on new car loans at finance companies, with the amount of financing as the weighting factor. It provides insight into credit conditions and consumer borrowing costs in the auto market.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Average Finance Rate of New Car Loans at Finance Companies, Amount of Finance Weighted tracks the typical interest rate on new vehicle loans originated by finance companies. This metric is used by economists and policymakers to gauge credit market conditions and affordability for automobile purchases.
Methodology
The data is collected through surveys of finance companies and calculated as a weighted average based on the total amount of new car financing.
Historical Context
This rate influences consumer demand and automaker sales, making it a key indicator for the auto industry and broader economic policy.
Key Facts
- The rate averaged 4.77% in 2022.
- Rates have risen from historic lows during the COVID-19 pandemic.
- Higher rates can price some consumers out of new car purchases.
FAQs
Q: What does this economic trend measure?
A: This trend measures the average interest rate charged on new car loans by finance companies, weighted by the total amount of financing.
Q: Why is this trend relevant for users or analysts?
A: The new car loan rate is a key indicator of credit conditions and affordability in the auto market, which impacts consumer demand and automaker sales.
Q: How is this data collected or calculated?
A: The data is collected through surveys of finance companies and calculated as a weighted average based on the total amount of new car financing.
Q: How is this trend used in economic policy?
A: Policymakers monitor this rate as an input for assessing broader credit market conditions and the impact on consumer spending and the automotive industry.
Q: Are there update delays or limitations?
A: The data is published monthly with a typical 1-2 month lag.
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Citation
U.S. Federal Reserve, Average Finance Rate of New Car Loans at Finance Companies, Amount of Finance Weighted (G20TERMSRIELPCFANNM), retrieved from FRED.