US Auto Finance Rates Hit New Low In March 2010:
Average automobile finance rates in the U.S. dropped to the lowest levels since at least 2002 in March, according to automotive information aggregator Edmunds.com, led by incentive-driven Toyota Motor Corp. (TM).
Industrywide, the rate tumbled to 4.4% from 5.8% a year earlier. Figures from February weren't provided in a statement from Edmunds and a spokesman wasn't immediately available.
Toyota led an incentive blitz as the company looked to jumpstart sales in the wake of the recall of millions of vehicles. It worked in the U.S. as it nearly outsold General Motors Co. last month, coming in a close No. 2 and just ahead of Ford Motor Co. (F).
Conversely, Kia Motors Corp. (000270.SE) had the highest average interest rate in the U.S. last month at 7.1%.
"Low interest financing is compelling for consumers because those who qualify often enjoy greater savings than they would get from a cash-back offer," said Edmunds senior analyst Jessica Caldwell. She added low interest offers also benefit auto makers as they generally result in less damage to brand image and residual values. online.wsj.com
My comment: Interest rates fell, from 1981 to December 2008, with 10Y Treasuries going from 16% to 2.08%. Since then, interest rates have been rising, and probably will continue to do so for many years. This is going to decrease sales of houses, cars, and everything else that is financed. |
