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Digital News Report – This week car loan rates were lower than last week. The nationwide average 48-month new car loan 5.120%. Used car rates were higher at 5.570percent.
The rate varies according to state. In California the average 60-month new car loan rate was 7.610% while the average in New York was 6.240%.
In New York, KeyBank had a rate of 6.04%. HSBC Bank USA had rates starting at 9.69%.
The rate will depend on the borrowers credit score. Just because the customer has a poor or even bad credit score, doesn’t mean they can’t qualify for a loan. The rate will be higher though.
According to one report, banks and credit unions now have the money to lend, and even subprime lending is going up. A year ago it was very difficult to get a used car loan without stellar credit.
In Illinois the average 60-month new car loan rate was 5.056%. Harris Bank had rates starting at 5.50%.
Loan rates in Florida averaged 5.318%. Wachovia had new car rates starting at 10%.
By Tina Brown