Due to low interest rates spurned by Federal Reserve Bank policy, interest rates on auto loans are extremely low. Indeed, it appears that interest rates have dropped from nearly 8% to about 2.5% on both 60 month new and 60 month used car loans. While the actual interest rate you get is dependent on your personal credit score, this shows that even subprime borrowers are in a good position to benefit from low interest rates, as more and more companies are finding lending cars to subprime borrowers is becoming more profitable as the economy improves in certain areas:
"The rate of car loans delinquent 30 days fell to 2.38 percent, the lowest in any second quarter since at least 2006, Experian reported last month."
"U.S. banks made 36 percent of their car loans to subprime borrowers in the second quarter, up from 34 percent a year earlier, according to data from Experian Plc, which tracks credit information as well as data on nearly 700 million vehicles in North America."
What does this all mean? That if you are interested in financing either a new or used vehicle from One Stop Motors, you can expect low historical interest rates which translates into low monthly payments, even if your credit is not so hot.
Interested in financing a vehicle? One Stop Motors can help. Please call if you have any questions regarding used vehicle financing, we are happy to answer any questions you may have.
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