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
The 'Average Finance Rate of New Car Loans at Finance Companies, Amount of Finance Weighted' is a key economic indicator that tracks the average interest rate charged by finance companies on new car loans. This metric provides insights into consumer borrowing costs and credit conditions in the automotive 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
This series measures the average interest rate that finance companies, such as banks and credit unions, charge consumers on new car loans. It reflects the weighted average of all new car loan interest rates based on the dollar amount financed. Economists and policymakers use this data to monitor credit market trends and consumer financing activity.
Methodology
The data is collected by the Federal Reserve through surveys of major finance companies.
Historical Context
This indicator is closely watched by auto industry analysts and policymakers to gauge the affordability of new vehicle purchases.
Key Facts
- The average finance rate has ranged from around 3% to 6% over the past decade.
- Rates are typically lower for new car loans compared to used car loans.
- This metric helps track changes in the cost of consumer credit in the auto market.
FAQs
Q: What does this economic trend measure?
A: This series measures the average interest rate charged by finance companies on new car loans, weighted by the dollar amount financed.
Q: Why is this trend relevant for users or analysts?
A: This indicator provides insights into consumer borrowing costs and credit conditions in the automotive market, which is important for understanding vehicle affordability and consumer spending patterns.
Q: How is this data collected or calculated?
A: The data is collected by the Federal Reserve through surveys of major finance companies.
Q: How is this trend used in economic policy?
A: Policymakers and market analysts use this metric to monitor credit market trends and consumer financing activity in the auto industry.
Q: Are there update delays or limitations?
A: The data is published monthly with a typical lag of 1-2 months.
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Citation
U.S. Federal Reserve, Average Finance Rate of New Car Loans at Finance Companies, Amount of Finance Weighted (RIELPCFANNM), retrieved from FRED.