Average Finance Rate of Used Car Loans at Finance Companies, Amount of Finance Weighted
This dataset tracks average finance rate of used car loans at finance companies, amount of finance weighted over time.
Latest Value
16.93
Year-over-Year Change
25.87%
Date Range
3/1/2008 - 3/1/2025
Summary
This trend measures the average finance rate on used car loans at finance companies, with the amount of finance weighted. It provides insight into the cost of vehicle financing and can inform consumer and lender decisions.
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 Used Car Loans at Finance Companies, Amount of Finance Weighted trend represents the average interest rate charged on used car loans by finance companies, with the rate weighted by the total amount of financing. This metric is closely watched by economists and policymakers to gauge consumer credit conditions and vehicle affordability.
Methodology
The data is collected and calculated by the U.S. Federal Reserve through surveys of finance companies.
Historical Context
This trend is used to monitor consumer credit markets and inform economic policy decisions.
Key Facts
- Finance companies account for over half of used car loans.
- Rates have ranged from 4-7% over the past decade.
- Rates are a key factor in vehicle affordability and consumer purchasing power.
FAQs
Q: What does this economic trend measure?
A: This trend measures the average interest rate charged on used car loans by finance companies, weighted by the total amount of financing.
Q: Why is this trend relevant for users or analysts?
A: This metric provides insight into consumer credit conditions and the cost of vehicle financing, which is crucial for understanding consumer purchasing power and the state of the automotive industry.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the U.S. Federal Reserve through surveys of finance companies.
Q: How is this trend used in economic policy?
A: Policymakers and economists use this trend to monitor consumer credit markets and inform decisions related to economic policy, particularly in the automotive and consumer finance sectors.
Q: Are there update delays or limitations?
A: The data is published monthly by the Federal Reserve with minimal delays, providing timely insights into used car financing conditions.
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Citation
U.S. Federal Reserve, Average Finance Rate of Used Car Loans at Finance Companies, Amount of Finance Weighted (RIELPCFAUNM), retrieved from FRED.