Finance Rate on Consumer Installment Loans at Commercial Banks, New Autos 72 Month Loan
This dataset tracks finance rate on consumer installment loans at commercial banks, new autos 72 month loan over time.
Latest Value
7.73
Year-over-Year Change
48.94%
Date Range
8/1/2015 - 5/1/2025
Summary
This economic indicator tracks the average finance rate for new auto loans with a 72-month term at commercial banks. It provides insight into consumer borrowing costs and the overall lending environment for automotive purchases.
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 finance rate represents the annual percentage rate (APR) that banks charge consumers for new auto loans with a 72-month (6-year) duration. This metric helps economists and financial analysts understand lending trends, consumer purchasing power, and the cost of automotive financing.
Methodology
Data is collected through surveys of commercial banks, tracking the average interest rates applied to new auto loans with a 72-month term.
Historical Context
Policymakers and economists use this trend to assess consumer spending, banking sector health, and potential impacts on the automotive industry and broader economic conditions.
Key Facts
- Reflects the average interest rate for new auto loans with a 6-year term
- Provides insights into consumer borrowing costs
- Influenced by federal monetary policy and economic conditions
- Important indicator for automotive and banking industries
FAQs
Q: What does this economic indicator measure?
A: It measures the average finance rate for new auto loans with a 72-month term at commercial banks, indicating the cost of borrowing for car purchases.
Q: Why are 72-month auto loans significant?
A: Longer-term loans like 72-month terms can make car purchases more affordable by spreading payments over a longer period, but may result in higher total interest paid.
Q: How do interest rates impact auto loan affordability?
A: Higher interest rates increase the total cost of the loan, potentially making car purchases less affordable for consumers and impacting automotive sales.
Q: What factors influence auto loan interest rates?
A: Factors include federal funds rate, credit scores, economic conditions, inflation, and individual bank lending policies.
Q: How often do auto loan rates change?
A: Auto loan rates can fluctuate frequently based on economic conditions, Federal Reserve policies, and market dynamics.
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Citation
U.S. Federal Reserve, Finance Rate on Consumer Installment Loans at Commercial Banks, New Autos 72 Month Loan [RIFLPBCIANM72NM], retrieved from FRED.
Last Checked: 8/1/2025